Trends to Watch in Payments Industry

Payment Industry Trends

In 2018, consumers spent USD517.36 billion online, illustrating just how fast the e-commerce industry is expanding. Besides, online B2B sales developed 11 percent in 2018, relinquishing USD1.08 trillion. For companies to keep up with this demand, the latest trends and strategies are evolving just as rapidly.

Here are some key insights about payment biases and payment technology trends as we begin the second half of 2019.

Shoppers will be awarded an increasing diversity of experiences.

For a long-drawn time, there were just two main payment experiences—you either traveled to a store and handed your amount to a cashier, or you bought online and entered your data on a checkout page.

In current years, payments have started to diverge from those common paths—a trend likely to strike up through the rest of 2019. The continued importance on seamless payments will also provide to this trend. Some app encounters are already making the payment method so invisible you don’t even think about it. More retailers will watch for ways to simplify their payment section. On average, companies possess five gateway processors and four acquiring financial institutions. Maybe their primary gateway didn’t have a special payment method, so they added extra. Simplification is a payment-processing market trend that’s just on the horizon. All-in-one payment solutions remain possible that provides extensive and flexible coverage for just about anything a merchant requires to offer. More merchants will possibly take advantage of these solutions in the forthcoming months to make payments more flexible.

Account takeover efforts will increase.

Account takeover practiced to be an issue essentially for banks and financial services businesses, but not so much for e-commerce merchants. That’s been replaced in 2019, with an uptick in account takeover attempts likely to happen in the e-commerce domain through the end of the year. Two factors are adding to this projected development:

More customers are storing payment, billing, and transportation information with specific e-commerce shops—and using the same user signs and passwords at all of them. The information a hacker would obtain just by obtaining your Amazon account would, in many cases, be sufficient to architect successful human engineering attacks on your friends and family.

Many retailers’ fraud prevention solutions focus only on evaluating transactions as they occur, not on protecting account information.

There will be an expanding need for strong consumer authentication that is user-friendly.

The last date for European businesses to ensure they’re obedient with new PSD2 regulations is progressing quickly, and companies require to act now to ensure that their payment-processing arrangement meets the requirements in terms.

In the following half of 2019, businesses should execute 3-D Secure 2.0 to comply with the new laws. The latest updates to 3-D Secure 1.0 make for better user expertise. The original version required customers to remember a special security code to authenticate their identification during checkout. Additionally, 3-D Secure 1.0 did not operate on mobile, so businesses that used it were encountering high levels of cart abandonment.

The amount of cross-border e-commerce transactions will grow.

The amount of outlets last year that reported on the prevalence of digital cross-border buying is unbelievable. Accenture foretells that more than 200 million Chinese will be cross-border purchasing by 2020, generating a total transactional amount of USD245 billion. In a study conducted by BlueSnap in February, 37 percent of North American customers reported making an international shopping at least once a month. If you haven’t previously positioned your business for profit in this area, now is the moment.