In today's fast-paced financial landscape, businesses are continually seeking latest innovations to remain competitive, enhance user experience, and improve their bottom lines. A transformative wave, led by cutting-edge technologies, is revolutionizing the way businesses transact and manage payments. Let's explore some of the pivotal trends and latest payment technologies that are setting the pace for the future.
The Dawn of the New Payments Platform (NPP)
An Australian invention, New Payments Platform (NPP) is a significant innovation in the payment industry, enabling real-time fund transfers. This platform, which significantly reduces the lag associated with traditional bank processing times, isn’t just about speed. It’s an embodiment of the future of finance. With its enhanced transparency feature, built upon a robust, data-rich transaction model, businesses can revel in unparalleled clarity. This, in turn, minimizes disputes, leading to efficient resolutions and substantial cost savings.
Another feather in NPP’s capabilities is advanced tokenisation. By replacing sensitive transaction details with unique symbols, or 'tokens', NPP elevates the security measures to new heights. In a world where cyber threats loom large, such an added layer of security can save businesses from potentially crippling financial losses due to fraud.
Mobile Wallets: The Digital Powerhouses
Another rapidly rising trend defining modern financial transactions is mobile wallets. Forecasts suggest an astounding growth of mobile wallets, with user numbers potentially reaching 4.87 billion by 2025, according to a report by Payments Dive. Another data by Juniper Research indicated that mobile wallet transaction volume will grow up to 49 billion globally by the end of 2023.
These aren't just applications facilitating monetary transactions; they're evolving into comprehensive financial hubs. From bill payments and ticket purchases to an array of rewards and incentives, mobile wallets are expanding their horizons.
Businesses stand to gain significantly from this trend. The data amassed from mobile wallet transactions can offer a goldmine of insights. It's a window into customer preferences, behaviours, and spending patterns. Industry giants like Apple, Google, and Samsung have already forayed into this domain, each with its unique brand-specific wallet. Yet, the vastness of this arena suggests that there's room for many more players.
The Seamless World of Contactless Payments
The COVID-19 pandemic has undeniably accelerated the adoption of contactless payments. Contactless technologies allow consumers to make payments by simply tapping or waving their card or device over compatible PoS terminals.
As society inches closer to a cashless future, contactless payments, powered by near-field communication (NFC) technology, are leading the charge. According to Business Wire, the global contactless payment market size is expected to grow from USD 10.3 billion in 2020 to USD 18 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 11.7% during the forecast period.
Beyond the obvious convenience, these transactions provide a dual advantage: speed and security. Encrypted data transfer, inherent in NFC payments, surpasses the security measures of traditional PIN technology. This enhanced security can translate to reduced instances of fraud, thereby safeguarding businesses from financial setbacks.
Efficiency with Smart Least Cost Routing (LCR)
Mandated by the RBA, Least Cost Routing has recently become a major point of discussion and attention in Australia. In the context of payments, Least Cost Routing allows merchants to choose the cheapest network to process debit card transactions, potentially saving them money on transaction fees.
However, Smart Least Cost Routing takes a step further by diligently analysing multiple transaction routes and ensuring that businesses always tread the most cost-efficient path. This not only leads to direct savings on transaction fees but also amplifies the success rates. Fewer failed transactions mean happier customers and more robust bottom lines. Refer to our page on Least Cost Routing for further information.
The Rising Popularity of Mobile Point of Sale Systems
Mobile Point of Sale (mPOS) stands at the forefront of modern payment methods, liberating merchants from the constraints of traditional retail spaces. No longer tethered to physical storefronts, businesses can now easily process payments at diverse venues, from concerts and trade shows to food trucks and pop-up markets.
Indicative of its growing importance, data from Global Market Insights predicts an impressive compound annual growth rate (CAGR) of approximately 19% for mPOS from 2020 to 2026. As these trends suggest, mPOS is not just a fleeting technology but is set to be a dominant force in digital payments for the foreseeable future.
When combined, advanced tokenization and mPOS offer a powerful solution for businesses. The mobile nature of mPOS, combined with the security of tokenization, means businesses can conduct sales in diverse settings securely, from pop-up shops to trade shows. The reduced risk of data breaches, combined with the ability to process payments anywhere, can lead to increased sales opportunities, improved customer trust, and overall cost savings.
Emergent Trends and the Road Ahead
Apart from the above trends and payment technologies, some other innovations are also carving their niche. Voice Payments, for instance, promise to redefine the contactless payment landscape, with projections signalling a marked growth trajectory by 2030. Another noteworthy trend is the 'Buy Now Pay Later' paradigm. These short-term financing options are reshaping e-commerce finance systems, offering customers an unprecedented blend of flexibility and convenience.
In today's fast-paced business world, having a seamless, secure, and advanced payment system that leverages on latest payment technologies is not just a luxury—it's a necessity. This is where IPSI and our platform come in.
1. Cutting-edge Technology at Your Fingertips:
Our platform is the embodiment of the future of payments. We've consistently stayed ahead of the curve, ensuring that as the payment industry evolves, so do we. By continuously investing in new technologies, IPSI ensures that our clients always have access to the best and most advanced payment solutions.
2. Security You Can Trust:
With cyber threats on the rise, our top priority is safeguarding your transactions. Our advanced tokenisation techniques ensure that sensitive information is always protected, reducing the risk of cyber thread and giving both businesses and their customers peace of mind.
We are leading the industry when it comes to PCI DSS compliance by being one of the first major Australian-operating payment service providers to achieve PCI DSS V4.0 some 18 months ahead of being mandated across the industry. We remove up to 90% of merchants PCI DSS compliance obligations.
3. Universal Compatibility:
Whether you operate in retail, wholesale, e-commerce, or any other industry, our platform is designed to fit seamlessly into your operations. With support for mobile payments, contactless transactions, and more, we provide versatility that adapts to your business needs.
4. Streamlined for Efficiency:
Time is money. That's why our platform emphasizes speed without compromising security. Fast transaction times and instant payment verifications mean you spend less time waiting and more time growing your business.
The world of digital payments is ever evolving. With IPSI, you're not just getting a solution for today but a partner for the future. As the industry shifts and grows, we'll be right there with you, ensuring you're always equipped with the latest innovations to keep your business stay competitive.
If you’d like to discuss how we can help, send us an email to [email protected] or call us on 1300 975 630. You can also contact us by following this link.