Looking to the future of payments


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when making a purchase. I maintain that they are simply no longer fit for purpose. Although PINs remain secure today, with the ever-increasing computing power and ingenuity of fraudsters, we should be planning for a replacement so that we are ready ahead of time. This is likely to see the increased adoption of biometric methods of verifying consumers. There is a wide choice of biometric options now


available including fingerprint, finger-vein, voice patterns and iris recognition to name but a few. These technologies are rapidly maturing; error rates are coming into acceptable ranges and the costs of adoption reducing. My personal prediction is that we will see a combination of verification methods used simultaneously and that biometrics will have much greater usage.


GLOBAL MARKETS GROW IN IMPORTANCE Retailing is increasingly becoming a global business thanks not least to the ability to serve consumers wherever they live from e-commerce websites. This growth in international sales will continue to be a priority for many merchants. The opening up of the Asian markets and the


increased wealth redistribution globally mean that retailers must offer new payment acceptance methods that are acceptable to these consumer groups. As an example UnionPay has far higher usage in South East Asia than Visa or MasterCard. Today only a small percentage of UK retailers can


a store? One click checkouts as offered by large corporations such as Amazon will be replicated by smaller sized merchants. InApp purchases will also become a standard way to make a purchase. Uber, who have been creating a revolution in the taxi industry, have taken this one step further, with the consumer paying for a ride without ever showing a card or making a single click. Payment simply happens automatically when the journey concludes. This is the ‘zero click’ payment transaction.


BIOMETRICS TO THE RESCUE Passwords have seen their day. They are no longer a secure and practical way to verify a genuine user


accept alternative payment methods like UnionPay and this needs to change if they are not to miss out on large sales opportunities. Retailers have to ensure that they can support the payment methods preferred by their enlarged consumer prospects.


PREDICTING THE FUTURE It is not easy for any retailer to accurately predict the future, but what all can do is recognise that today’s payment options, systems and suppliers will need to change. Payments are increasing complex and the subject of growing regulatory demands, so any new payments strategy needs to be carefully thought through. It is critical to plan for increased flexibility and choice. A review of suppliers is a helpful starting point to ascertain whom you feel will be best placed to guide you through these changing times and offer what is going to be needed.


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