Estimated reading time: 4 minutes
Payment processing has come a long way within the past couple of years. With the new year among us, it’s important to be aware of the forecasted trends that will rock your world, especially if you’re an ISV. Take a glimpse at these five predictions for payment direction in 2019:
1. Goodbye EMV, Hello Contactless!
Quick turnover times and efficiency are of utmost importance when completing transactions in both retail and restaurants realms today. Time is money for both consumers and employers these days. It’s best to have the highest producing software and hardware solutions to appease both parties. EMV chip cards were the highlight of the year, with safe and encrypted payment processing at the checkout counter, but now it’s more about the speed of things to get you through the shift. 
Leaping into the new year, EMV Chip cards will be able work in coordination with contactless card readers, allowing for a broader range of accepted payment options. Not created yet, users will be able to take advantage of technology later in the year. Stay tuned!
2. Mobile Pay Multiplied
Another first for 2017 was the extensive usage of mobile and digital wallets at retailers and restaurants upon checkout. Consumers are getting more comfortable with being on their smartphones and the average consumer is getting younger and younger. That being said, there is a huge ROI for brands who have developed their loyalty program apps where consumers can order ahead and make purchases right from their phones in exchange for ‘stars’ or points.
Not only is mobile pay a handheld opportunity, but it is quick, easy and available for practically every major phone provider, i.e., Apple Pay, Google Pay, Samsung Pay. Mobile Pay users are forecasted to multiply within 2019, bringing good hope to business owners and potentially even ISVs.
3. P2P is the Way to Be
Person to Person payment options have steadily popularized in 2018 and especially amongst millennials and Generation Z. Whether it’s splitting the tab at the bar, contributing to the Uber fees, or even paying rent, millennials are taking advantage of these apps to pay back their friends on a daily basis. “Sending your friends a note and including an emoji [like a wine glass or a winged stack of cash] takes the awkwardness out of asking your friend to pay back their portion of the bar tab last night,” said Venmo spokesman Josh Crisco.
Paypal’s Venmo is the ring-leader of the show, as of now, but Square’s Cash App and Zelle are quickly climbing up the ladder. Venmo is a free-t0-use platform and is compatible with more than 2 million merchants, both online and in-store. Their quick and easy “smart payment button” can be integrated into apps as a payment method for in-app purchases. Venmo also utilizes data encryption to protect users against unauthorized transactions.
4. It’s a Bird, It’s a Plane, No it’s Gen. Z
It’s evident that the sad realization has sunk in, but Generation Z is now a thing. Brought up in the digital age, these individuals are the driving force for a majority of the consumer trends today in the future. Born between 1995 and 2010, Gen. Z members are more than familiar with the digital market. The oldest of the bunch are joining the workforce and building spending power. The younger of the group is thriving through social media platforms on their smartphones and reshaping the way brands should project to their audience. As time goes on, it’s predicted that they will demand efficiency and the convenience of payment experiences to come.
5. Let your Voice Ring out
New to payment processing trends, voice-enabled payments are popularizing by the masses in this age. Due to its convenience AI-driven voice assistants are a big hit with younger crowds. Individuals ages 18 to 34 make up the Millennial/Generation Z demographic. It’s shown that a notable amount of members are completing basic activities on their mobile devices, using voice assistants. Purchasing items online and making major credit card payments rank on the lower side for this age group.
Alexa, Pay my Mastercard Bill
Mastercard falls among the many who are striving to integrate voice assistants into their payment activities, constructed fully by either Amazon or Google. “Conversational Commerce” will work towards manipulating tools such as Amazon Alexa to retain credit card information to pay for purchases by just ordering your voice assistant to do so. As time goes on, however, ISVs should be ready to respond to this potential trend.
Millennials’ Voice Assistant Usage
| Play Music | 29.8% |
| Set an Alarm | 23.4% |
| Purchase Items Online | 11.1% |
| Make a Credit Card Payment | 7.4% |
Payment Processing Going Forward
In 2019, we are sure to move closer to a cashless society. With technology advances coming out of both right and left field, it’s important for ISVs to stay vigilant of society’s trends, attend to their customers’ feedback and work diligently with VARs to make sure communication stays consistent across the board. Payment processing trends are ever-evolving, but stay tuned for these solutions and watch how they alter this society.
