Businesses need to be aware of changes in technology, consumer behavior and compliance requirements as the digital payment industry takes over the global payments market.

Merchants must also adapt to the changing technology and customer demands.

Let’s get into the latest payment industry trends for 2022:

ACH Transactions:

ACH Transfer is an electronic money transfer that uses the Automated Clearing House network.

Participants from the payment and financial industries can participate in the ACH system. Account originators are banks, credit unions and thrifts. They initiate ACH transactions by submitting debit and credit entries to Federal Reserve’s ACH operator.

Letters of Credit can be used for international transactions because they rely on a common set of rules which can be understood by all parties to international trade.

The Advantages of ACH Transactions

There are many benefits to using ACH transactions for bills payment.

• Reduce your monthly bills by paying electronically via ACH.
• Send and receive payments quickly
• Low transaction fees
• Flexible and recurring billing

Biometric authentication:

The payment industry isn’t new to biometric authentication. It has been around for centuries. Biometric authentication is a security process that verifies users’ identity using a unique biological trait, such as irises, voices, facial characteristics, and retina.

This unique data is used to verify the identity of a user when they access their account. Biometric authentication provides greater security than traditional multi-factor authentication because the data is unique for each user. Biometric systems can authenticate a person with over 99% accuracy.

Contactless payments:

Contactless payments have become a rage. They were introduced in 2006 by MasterCard’s PayPass and Visa’s payWave. They are the easiest and most accessible way to pay anywhere. The technology can be used to save businesses money and speed up checkout.

Contactless technology is also making a difference in other areas such as public transport and work. Contactless cards allow for easier access to trains and buses, while some industries allow employees to pay their lunches with their cards, rather than having to use cash or pull out a credit card. It uses RFID to make transactions easier, safer, and faster in-store.

Optimized Authorization Rate:

This technology allows retailers increase their online sales by using machine learning and data. This technology is best suited for businesses that require high volumes of digital payments.

A high authorization rate and zero declines will increase your revenue. There are many things you can do to increase your authorization rates. These are some of the things you can do to increase your authorization rate:

• Optimize your payment flow
• Gather and submit additional billing information
• Reduce your fraud rates
• Allow card account updates

MobilePOS Devices:

Mobile POS allows you to use your smartphone as a point of sale. It allows you to make credit card payments while on the move.

Mobile POS devices offer a more seamless shopping experience. Customers are free to browse products and make purchase decisions without having to wait in long lines. Retailers can also track inventory and manage stock using mobile POS devices, as well as provide faster customer support.

Consider these factors when looking for the best mobile point-of-sale provider for your company:

• Security
• Simplicity

Affordable It’s important that the mobile POS is affordable. Make sure you know what you are spending your money on. Other than the hardware cost and credit card transaction fees, there may be additional fees that you should be aware of.

Identity authentication:

Traditional authentication methods (e.g., SMS-based 2FA, KBA) don’t offer much assurance of identity. Large-scale data breaches, identity theft and fraud have made it impossible for businesses to trust that someone is who they claim they are, regardless of whether they have the correct Social Security number or their postal address.

Both physical and behavioral biometrics are valid authentication methods for card not present (CNP) transactions. They provide strong protection against mobile fraud. It is much harder for fraudsters and others to imitate customers when both biometric technologies are used together.

Face-Based Authentication:

It’s no surprise that Face-based biometrics have become the most used method of authentication due to our collective obsession with our smartphones.

It’s convenient and much safer than traditional online verification methods. It cannot be hacked, duplicated, or manipulated. It is a one-step solution for the problem of remembering so many passwords and PIN codes.

3D Secure 2.0

3D Secure (3DS), a worldwide accepted authentication solution, is designed to make eCommerce transactions more secure in the real-time. It provides an additional layer security. It allows the exchange of data between merchants, card issuers, and consumers, when required, to verify that the transaction is initiated by the correct owner of the account.

Merchants are happy with the increase in 3DS acceptance. 3D Secure 2 (3DS2) was developed and is owned by EMV. It addresses the issues with the old protocol and delivers a smoother user experience.

Cardholders are able to authenticate themselves with 3DS2’s frictionless flow without being challenged. Cardholders will be pleased with the quick and painless checkout process. Merchants can expect 66% lower abandonment rates, according to Visa.

Why should businesses care about 3D security?

• Lower Risk of Fraud:

• Chargeback Liability Shift

3D Secure is the best way to comply with Strong Consumer Authentication (SCA).

Cross-border Transactions:

It is relatively easy to expand your business to allow cross-border transactions. Each market is different, but there are some steps that should be taken to ensure success in every market.

When accepting international payments, the most important integration step is connecting to an international payment portal. Payment gateways allow you to connect multiple payment systems and methods, making transactions easy, safe, and fast for your customers.

A payment partner is an essential step in any international expansion strategy. Merchants require a trusted, global partner who can support their expansion strategy with minimal incremental integration and broadest coverage.

Peer-to-Peer Transactions:

An app for P2P payments will:

• Allow payment to a landlord, or merchant on an installment plan.
• You can pay for taxis or cabs with the applicable discounts.
• When money is borrowed from a relative or friend, set the balances.
• You can set a limit on who can borrow money and allow them to withdraw the amount at a predetermined time.
• You can transfer money to anyone you know who is borrowing from you (typically, from your contact list).
• Split the bill between multiple people, especially for expenses such as dinner, outings and trip payments.
• Instantly transfer money to loved ones
• Pay utility bills and other services.

P2P allows people to have greater control over their finances and provides relief when managing day-to-day expenses. It allows consumers to transfer money quickly and securely, without needing to go through complicated or unnecessary procedures.

APM:

APM is Application Performance Management (or Application Performance Monitoring) and is an important tool for optimizing and monitoring the performance of your apps.

APM (Apple Performance Management) is a term used by vendors and industry to describe anything that has to do or can be done to monitor the performance of your code, applications dependencies, transaction times and overall user experience.

APM is a term that’s used for everything and anything performance related. However, vendors may use it to refer to completely different things. APM can be used to describe many different vendor solutions.

• App Metrics Based Many tools use different server and app metrics and call it APM. They can only tell you how many people your app receives, and which URLs are slow. They can’t give you the reason because they don’t do code level profiling.
• Code Level Performance Stackify Retrace and New Relic are the most common types of APM products that you can think of based on transaction tracing and code profiling.
• Network Based- Extrahop uses APM to refer to its ability to determine application performance using network traffic. These types of solutions are the focus of NPM, a product category.

In Summary

As clients and businesses shift from cash and checks to digital payment, the power dynamics of payments are changing. Retail businesses are seeing a rise in card sales, with mobile wallets being a key trend for the future. If you are looking to grow your business, then you should investigate the above trends.

Balanced Payment Partners strives to keep up with credit card payments and can work closely with you to ensure that you only work with the most up-to-date processing partners.

If you are looking for a credit processing system for your business or maybe want to expand your system, then reach out to us at (800) 354-6256 or via email [email protected] to discuss how we can help grow your business by expanding your digital payment system.