The Future of Payments is Here…Are You Ready?
It seems as if the future of payments is changing every day. What started off as bartering turned to cash, then credit, then PayPal, then bitcoins, and now we see mobile wallets, Venmo, being able to pay through Facebook, and more! And that’s just the latest at the time of me writing this blog. Who knows… by tomorrow, there could be four or five new ways to pay. As retailers, if you’re not quick to adapt to the next trend (or know when it’s a good one to skip), you can harm your business.
What’s the latest trend, you may ask? Peer-to-peer payments. If I forget my wallet and my friend spots me for lunch, I can quickly log in to Venmo, Facebook, or use Square to conveniently send the cash to my friend.
A ton of great articles and new stories have been published on these new platforms. Check out some of them below:
Mashable, writes about Square’s new peer-to-peer payment system, $Cashtags, supposedly inspired by Twitter. The company released its latest product on Monday, March 23, 2015.
Slate writes about Venmo, the fastest growing, original peer to peer system. Venmo allows you to sync your Facebook account for easy payment transactions. The story highlights the growth of this system, as well as the security risks.
VentureBeat covers how Facebook payments will work as it begins its rollout in the next few months. It should be noted that this will only be a part of its messenger app and will be strictly for transferring payments using a Visa or MasterCard debit card.
As these applications start to take over, we will see transactions occurring in a totally different way. Venmo has shown that the popularity is already there, but each application will have to work on security. Retailers have been working on making their payment systems more secure and PCI compliant, and as retailers can attest to, it’s not an easy task. As money is transferred faster and more easily over the internet, those concerns will continue for this industry.
Retailers can see this as a new way of collaborative shopping with consumers. For example, the hospitality industry will likely be thankful they won’t have to pay the processing fee of two credit cards for a single bill anymore as their diners choose to simply pay through an app after dinner. And that’s just the beginning.
Peer to peer payments will have a tremendous impact on the retail and hospitality industry. Is your business ready? Talk to the retail experts at ArcherPoint to discuss a solution to fit the needs of your customers and your business.