Last year Millenials and Gen Z accounted for $350 billion of spending in the U.S. alone, by 2020 Gen Z will account for 40% of global consumers. These generations grew up with the internet and connected devices, businesses will need to transform their payments and go digital. Here are a few trends to watch out for;
Contactless payments are IN
One new thing to roll out this year is contactless payment cards. NFC (near-field communication) technology allows consumers to use the tap and go option or wave their card within the range of the terminal.
Obsolete Tech Is OUT
Merchants who haven’t upgraded their equipment really ought to because that same piece of hardware will also allow more mobile wallets, Apple Pay, Google Pay, Samsung Pay, or payments made from wearable devices such as smartwatches and fobs. With all the changes for payments and eCommerce consumers are watching their digital payments very closely.
Consumers are far less likely to turn a blind eye to an outdated or choppy experience caused by older tech, and the friction caused by outdated systems will play an even more critical role in customer engagement in 2020.
Increase in regulations
Tech is ever-evolving so working closely with your rep is even more important to make sure that you are covered with PCI in addition to any new laws that may apply.
- Companies like Visa are updating their free trial billing rules to benefit businesses and consumers with chargebacks while implementing more transparency.
- The Wayfair Act will take effect in the U.S. in 2020. This allows states to tax a company that operates within the state borders regardless if they are located there or not. Retailers will need to figure out local taxes and regulations to continue their business uninterrupted.
- Because merchants are going to have a harder time keeping up with the regulations, it makes even more sense for them to partner with the payment industry, that way they have someone watching over their merchant account and keeping things on the up and up while they focus on running their business.
- Tokenization will expand; Brian Cole, head of North American products at Visa, says. “The scope of fraud in tokenization is cut off because the token itself only works for that consumer, on that device, at that merchant.”
It is so important for merchants to be aware of changes and stay up to date, the best way for that to happen is keeping in contact and having a good relationship with their representative. Our reps attend weekly training to ensure they have the latest information.