The history of payment technology
Payment solutions have evolved an immense amount over the years in response to changing technologies and market needs. From Visa’s invention of the credit card terminal in 1979 to the emergence of the internet in the mid 1990s – payments processing technology was propelled in leaps and bounds. Since then, the evolution of payment methods has continued to accelerate rapidly upon the emergence of e-commerce – Amazon.com and eBay fundamentally changing the way we shop and pay for goods.
Current innovations in payment technology
Now, consumer demand and rapid technological innovation continue to promote the creation of a variety of new payment methods.
For example, Mastercard recently launched the Identity Check Mobile (ICM) in Europe, which allows users to pay with their fingerprint or facial recognition technology (also known as biometric authentication). Invisible payments are also becoming increasingly commonplace – this encompasses the way Uber automatically deducts money from your PayPal, bank account or card upon the completion of your ride.
While the explosion of choice is great on the front end, more of this demand and innovation is likely to increase the complexity of backend payment systems, prompting retailers and merchants business owners to respond and prepare.
Future developments in payment technologies
The current innovations mentioned above shine a light on where payment technologies are likely to go in the future. Experts have forecasted that the future of payment technology will be more about effective transaction monitoring and secure identity authentication to avoid fraudulent charges and complicated relationships with payment partners.
Artificial intelligence and voice technology are also likely to grow in popularity, with a few simple commands being all it takes to make a purchase.
Finally, blockchain and cryptocurrencies could also take hold of the payment processing world. One advantage that these virtual currencies have is that they are able to verify payments themselves, making them an even more secure option.
How businesses can keep up with changing payment technologies
So how can businesses stay on top of these rapid changes, as well as gain a competitive edge? The answer lies in optimizing their payment systems and utilizing transaction monitoring and payment analytics to better plan for the future and make better business decisions.
Payments are one of the most fundamental aspects of running a business, so it’s imperative that organizations are enabling their customer to pay however they want. By not making customers’ preferred payments available, you could push them towards your competition instead.
To manage the complexity that comes with a choice, organizations should have a solid payment monitoring system that quickly highlights any issues within your payments environment, and allows you to troubleshoot payments efficiently. Simply put, the right payments monitoring tool should offer:
- Real-time visibility
- The ability to optimize payment channels proactively, not reactively
- Rapid and innovative debugging
- An improved customer experience
- The minimization of business risks
- The transparent increase in profits
Perhaps most importantly, businesses should prioritize the full use of their payment analytics – leveraging the insights gained from them to make strategic, data-driven business decisions that spur on the overall productivity, efficiency and ultimately, profitability.
Are you adequately prepared for the future of payment technology?