Credit and debit cards may soon be a thing of the past, as newer, more efficient ways of paying emerge. All technologies must adapt to the changing demands of users, and payment methods are not immune to this. But as card payments are used so frequently by so many, the implementation of a new process will not be easy.
There have already been some exciting and innovative ideas for how to move the payment system forward. Back in 2004, an approach was trialled in which fingerprints were linked to bank accounts – meaning items could be purchased using just fingers and thumbs. However, not enough key high-street players were prepared to invest, so it fell by the wayside.
More recent times have seen the launch of mobile wallet apps, which hope to speed up online purchases by ‘digitising’ customers’ credit and debit cards. It’s looking promising too, with over 100 retailers having agreed to accept payments from O2’s app service. As this is a relatively untested technology, security is the main stumbling block for implementation – although personal details, such as pin codes, passwords and other financial data, are held on remote central servers rather than on the mobile devices.
It’s not just the end users that are affected by impending changes though – certain types of businesses will feel the impact the most.
In the UK, retailers are currently required to use Chip-and-Pin to authorise card payments. The problem with this is the cost for vendors: because the terminals handle the encryption of data, they are more expensive than the old magnetic card readers. This can price out smaller retailers from accepting card payment – which may equate to substantial revenue losses.
A new form of payment that negates this encryption charge could be excellent news for the estimated 20 million companies that are currently priced out of accepting card transactions.
The mobile wallet technology could also be of great benefit to tradesmen, such as plumbers, decorators and electricians - who are disadvantaged due to not being able to accept card as a form of payment. Customers could simply use their phones to transfer the money on the spot.
At Intrinsic Technology, we are acutely aware of the importance of efficient service and customer satisfaction in the retail sector. As customer demands for mobility and flexibility increase, the security required also alters – so our solutions must adapt.
By staying ahead of the curve and improving our understanding of upcoming technologies, we can better serve our customers with the bespoke support they need.