What’s in Store for Payments in 2016?
The online and mobile payments industry has enjoyed substantial growth in 2015 and this growth will likely spill over in 2016, industry experts say.
Digital payments surged in 2015 owing to new technologies such as Apple Pay, Android Pay and Samsung Pay—all holding a promise of safer and faster payments.
These developments, coupled with effective e-commerce strategies, will help companies grow and expand their businesses to new markets especially overseas.
Wearable devices gained traction in 2015 as new means for payments egged on by the launch of Apple Watch.
Experts say 2016 will see the birth of more payment-ready wearable devices as more companies look to integrate payment functionalities into their products.
Ralf Ohlhausen, business development director at PPRO Group, commented, “In 2016, we will also see mobile payments become less smartphone-dependent. Instead, new technologies including smartwatches, bracelets and even rings will give us the ability to provide payment options.”
Security concerns remain a major issue among consumers despite significant works on tokenization and biometrics technologies.
With biometrics holding a promise as the answer to secure payments, biometric security solutions will move beyond banking to the financial sector.
Big changes are coming for the payment industry with the impending changes in the Payment Services Directive (PSD).
Proposed revision in the PSD entails stronger security requirements for online payments and a legal framework to promote competition.
“This framework will facilitate market entry for new providers and allow the development of innovative mobile and Internet payment methods. It will also force banks to grant such providers access to their crown jewels: the accounts,” Ohlhausen said.
Overall, the industry has a brighter outlook in 2016 and consumers can expect new and better technologies that will make payments safer and easier.