As ISVs recognize integrated payments as an additional revenue stream, savvy payment gateways are pouring millions of dollars into their APIs to make integrations faster and easier for developers. New payment methods, more robust security practices and better developer tools are forming in the payment industry as well. Here are five payment trends that every ISV should keep an eye out for while vetting integrated partners.
1NFC Functionality
The demand for contactless payments has spiked dramatically in light of the coronavirus outbreak this year. According to a survey from The Strawhecker Group and the Electronic Transactions Association, 27% of U.S small businesses have seen an increase in NFC (near field communication) payment methods like Apple Pay, Samsung Pay and contactless credit cards. Experts like Richard Crone, CEO of Crone Consulting LLC., expect an additional 10% to 20% of total card-present transactions to be made by NFC solutions. As the demand for a safer checkout increases, ISVs supporting brick and mortar businesses will most likely see a spike in inquiries about contactless payments.
2Cloud EMV
As mobile checkouts like pay-at-table become standard for stores and restaurants, Cloud EMV is rapidly growing in popularity among business owners. Also referred to as wireless terminals, Cloud EMV offers an easier way for merchants to set up and maintain checkout stations. As opposed to connecting via ethernet or landline, wireless terminals connect to payment networks, as the name implies — through Wi-Fi. A wireless connection removes the burden of downloading drivers, and device updates are instant. However, the core functionality ISVs should look for in Cloud EMV is two-way initiation. This allows merchants to light up a terminal either from their management software or directly from the terminal in a mobile checkout scenario. Two-way Cloud EMV speeds up transactions and allows ISVs to offer a more flexible checkout experience.
3SRC Checkout
The One-Click Checkout Button is arguably the most cutting-edge payment method introduced to e-commerce. SRC (Secure Remote Commerce) offers a secure, fast and incredibly convenient way to complete online purchases. Rather than requiring customers to enter the same payment information every time they make a purchase on a digital channel, one-click checkout allows the customer to enter a verification code to use a stored token. Visa, MasterCard, American Express, Amazon and several other major payment companies have implemented One-Click Buttons, making it easy for payments gateways to adopt and offer to ISV partners.
4Fraud Prevention
Last year marked the worst year in history for identity theft reports. The FTC (Federal Trade Commission) reported that identity theft accounted for 20.33% of the 3.2 million fraud cases in 2019. As fraudsters become more sophisticated, fraud prevention technology continues to evolve as well. ISVs must ensure potential payment partners are implementing new and secure methods for fighting the daunting amount of credit card fraud that merchants are facing. A good payment partner should be PCI-Level 1 certified, implement end-to-end encryption and use tokenization for storing credit card information. These security measures not only protect end-users, but they keep ISVs out-of-scope for PCI compliance.
5API-First Payment Partners
Platforms seeking a payment partner to take on the heavy lifting of processing transactions, PCI compliance, and account onboarding will benefit from an API-first gateway. A partner who is dedicated to clean documentation and comprehensive developer tools ensures a smooth integration and lighter workload for ISVs – laying down a more robust foundation for a long-term partnership.
With payment trends evolving at a rapid pace, consumers are being conditioned for instant gratification when it comes to buying goods and services. Integrations that help ISVs offer secure and frictionless checkout experiences will make them much more competitive in the marketplace.
