5 Payment Processing Trends to Watch

Most retailers are aware of trends within their industries. But today, that may not be enough to remain competitive. Customers don't just want great products and services. They want a great check-out experience, too. 

Payment processing technology is transforming customers' expectations. Read on to learn five payment processing trends you need to know.

Payment Processing Trend #1: Agile Systems

Payment processors will need to evolve rapidly as technology changes. That's where project management comes in. Depending on your vendor's methodology, you could be stuck with a sluggish timeline – or on the cutting edge.

According to Accenture, agile methodology will power the next payment processing trends. In agile development, project management is collaborative and flexible. Developers work in sprints that let them address issues quickly. 

The alternative is waterfall development. While there's nothing inherently wrong with waterfall, it proceeds on a linear timeline. This can be slower and make development less responsive. 

Whether your team adopts it or your payment processor uses it, agile is a safe bet for the future.

Payment Processing Trend #2: Peer-to-Peer Payment Apps

The last time you got a haircut, how did you tip? What about happy hour – how did you split the bill? Today, customers prefer peer-to-peer payment apps (P2P apps) over cash. It's easier and more convenient to Venmo someone than to carry a stack of bills. 

In fact, P2P apps might be one of the biggest payment processing trends to watch. Business Insider reports that the P2P apps will be worth $574 billion by 2023.

Your business might not be able to run on Cash App. But P2P apps offer important lessons for retailers. Customers want quick, frictionless transactions. In fact, they value convenience so much that they're even willing to accept greater risk for fraud.

Custom mobile apps can help you deliver a payment experience that builds on P2P apps' success. For example, Starbucks' mobile app allows customers to pay and order in advance. App users can even unlock exclusive rewards.

If P2P can teach us anything, it's that flexible, mobile payment options will help your business grow.

Payment Processing Trend #3: Cryptocurrency

There was a time when crytocurrency seemed like science fiction. But these days, it's much more mainstream. As consumers become more familiar with concepts like cryptocurrency and fintech, retailers will need to keep up.

Cryptocurrency is a type of digital currency that uses cryptography to secure transactions. If you've heard of blockchain, that's the technology that powers it all.

The most well-known cryptocurrency is undoubtedly Bitcoin. Launched in 2009, Bitcoin made headlines when initial investments grew exponentially. One Norwegian man bought $27 USD of Bitcoin that shot up to approximately $980,000 USD within a few years.

Fintech is another term you should know. It's short for financial technology. The Venn diagram of fintech includes cryptocurrency. It also refers to a broader suite of software and algorithm-driven financial services. These customer-oriented technology solutions help businesses deliver faster, safer financial services.

Most retailers won't have to worry about accepting Bitcoin just yet. But cryptocurrency and fintech are important payment processing trends that will shape the future.

Payment Processing Trend #4: Encryption

As payments go digital, criminals will always try to be a step ahead. Breaches are a constant threat that could compromise personal information. That's why encryption is both an essential security feature and a key payment processing trend.

If you want to protect your customers, encryption is a must. GoSite uses end-to-end encryption that protects data at every step. This ensures that only the sender and the recipient can decrypt data – protecting it from prying eyes along the way. 

You should also look for payment processors with features like tokenization. In this process, payment processors use "tokens" rather than an actual credit card number. These tokens represent the credit card number while concealing it. The process protects consumers by making credit card numbers harder to steal.

As cyberthreats grow, investing in security is a must.

Payment Processing Trend #5: Big Data

Every time retailers make a sale, they gain valuable customer data. Yet translating this data remain elusive for most companies. In the coming years, experts predict that data management will be one of the most important payment processing trends. 

There are many common obstacles to managing customer data. Many companies have a siloed structure, with multiple departments collecting key data. Software can help teams manage data and reveal insights, but the learning curve remains challenging.

Despite these challenges, big data promises many benefits. Data-driven insights can improve customer service, increase efficiency and anticipate new patterns. Overall, companies that gather and analyze customer data can make more informed decisions.

Companies that embrace these five payment processing trends will be ready for the future. Want to learn more about payment processing? Download your copy of GoSite's free fact sheete today!