The shift toward mobile payment technologies and capabilities is seen as the largest area for growth and disruption over the coming year by industry professionals, according to a survey by CAN Capital.
Seventy percent of respondents said mobile payments have shown the most growth among merchant-focused product offerings over the past 12 months, and 44% feel new payments technologies will gain the most momentum in 2015 within the processing industry. When asked what trends will have the largest impact on consumer spending habits in 2015, 36% said mobile wallet technologies, followed by 27% who said online/mobile marketing practices.
Many of the industry's customers don’t appear to be keeping pace with this rapid innovation. According to the CAN Capital Small Business Health Index, 87% of small businesses do not currently accept mobile payments, and only 11% say mobile targeting is an important component of their digital marketing strategies.
"As the payments industry shifts toward mobile offerings and EMV-enabled credit cards, we must make sure we continue to engage with and educate the small businesses who will be using these new tools in their everyday business dealings," says Dan DeMeo, CEO of CAN Capital.
Security preparedness worries many
The transition to EMV (chip-and-PIN) credit cards in the U. S. is another top of mind concern for payment professionals. Twenty percent of professionals surveyed said the adoption of EMV will have the largest impact on the spending habits of consumers this year. Yet, despite the predicted impact on consumers, many small businesses are not prepared for the transition to EMV. The CAN Capital Small Business Health Index found that though over half of small businesses (55%) are familiar with EMV, only 18% have taken steps to update their point of sale systems to be compatible with chip-and-PIN cards.
Perhaps this lack of preparedness explains why so many in the industry see these technologies as significant disruptions to the marketplace. Forty percent of professionals cited the proliferation of mobile wallet use and 30% cited the adoption of EMV as the most disruptive trend.
To bridge the gap between industry innovation and small business preparedness, business owners may need to invest in education for employees and new equipment for their businesses.
- US Neo Bank Launches Second Wave of Crowdfunding
- Banks Must Embrace Next Generation of Payments to Stay in the Race says Capgemini
- Banking Exchange to Host Webinar Discussion Today on Open Banking Trends
- Basel Committee Urges Banks to Up Their Cyber Risk Preparedness
- Neo and Challenger Bank Market to Reach $395bn by 2026