Point of Sale (POS) payments have come a long way since the introduction of the first credit card in the 1950s.
Today, consumers have a plethora of payment options to choose from, including credit cards, debit cards, mobile payments and contactless payments.
With the rise of e-commerce and in the context of the COVID-19 pandemic, the shift towards digital payments has accelerated further, making it more important than ever for businesses to stay ahead of the game.
So, what does the future of POS payments look like? Here are some key trends to watch out for:
Mobile payments will continue to rise
Mobile payments have been around for a while now, but their adoption rate has been relatively slow in some parts of the world due to concerns around security and ease of use.
For example, cash is still the payment method of choice in Japan, followed by credit cards. However, with the rise of digital wallets and contactless payments, mobile payments are set to become the norm in the near future.
Businesses need to be ready to accept mobile payments, and this means having the right infrastructure in place. This includes investing in POS systems that can accept mobile payments, implementing security measures to protect against fraud, and ensuring that staff are trained to handle mobile payments.
Contactless payments will become the new normal
Contactless payments have become increasingly popular in recent years, and the COVID-19 pandemic has accelerated their adoption even further. The convenience and safety of contactless payments have made them the preferred payment method for many consumers, and this trend is likely to continue in the future.
Businesses that want to stay ahead of the curve need to ensure that their POS systems can accept contactless payments. This includes updating hardware and software to support Near Field Communication (NFC) technology, which is used for contactless payments.
The rise of digital currencies
Digital currencies, such as Bitcoin and Ethereum, have been around for over a decade, but their adoption rate has been slow due to concerns around security, volatility, and lack of regulation. However, with the rise of blockchain technology, digital currencies are becoming more secure and stable, and this is leading to increased adoption.
Businesses that want to stay ahead of the curve need to start thinking about accepting digital currencies as a payment method. This means investing in the right infrastructure, such as digital wallets and payment gateways, and ensuring that staff are trained to handle digital currency transactions.
Increased data security
With the rise of digital payments, data security is more important than ever, so businesses that want to stay ahead of the curve need to ensure that their POS systems are secure and meet the latest industry standards. This includes implementing measures such as encryption, tokenization, and two-factor authentication.
In addition, businesses need to ensure that they comply with data protection regulations such as GDPR. This means implementing policies and procedures to protect customer data and ensuring that staff are trained to handle sensitive information.
While challenges such as interoperability, standardisation, and user acceptance remain, the future of NFC (Near Field Communication) wristbands for contactless payment is promising. Key trends to note include increased adoption, integration with wearable devices, enhanced security through biometric authentication, and integration with mobile wallets.
NFC wristbands have expanded use cases beyond payments too. For example, they are also often used for streamlined event management, like at festivals. They can be used to facilitate ticketing and attendee registration, as well as general on-site interactions.
The future of biometric payments looks promising as it offers enhanced security, convenience, and integration. Biometric factors like fingerprints, facial recognition, and voiceprints provide a higher level of security compared to traditional methods. Biometric payments aim to simplify transactions, offering a frictionless experience by eliminating the need for physical cards or passwords. Integration with wearable devices and IoT (Internet of Things) opens up new possibilities, while biometric cryptocurrency wallets add security to digital transactions. Although challenges remain, the future of biometric payments holds great potential to revolutionise the way we make transactions.
“Digital transformation is changing the way we do business, and Point of Sale payments are no exception. As the world becomes increasingly digital, businesses that want to stay ahead of the game need to be agile, adaptable, and ready to embrace new technologies,” says Jose San Miguel, Managing Director, NuWeb Group.
“The future of POS payments is exciting and full of opportunities for businesses that want to stay ahead of the curve. By investing in the right infrastructure, staying up-to-date with the latest trends, and prioritising data security, businesses can prepare for the changes ahead and thrive in the digital age.”