Today’s competitive landscape demands new innovations to ensure long-term customer loyalty and satisfaction. While your current payment technology may be sufficient in completing customer transactions quickly and effectively, it may not offer the latest
convenience technology that has become popular in our high-tech society.

In recent years, mobile technology has become an increasingly popular trend in the payment world. Mobile solutions offer businesses the ability to minimize lines while quickening transactions. Line busting—completing a sales transaction with a mobile solution so customers don’t need to stand in line— has become commonplace in popular retail stores to improve a customer’s in-store purchasing experience.

It’s important for businesses to be aware of their customers’ payment preferences and patterns, so they can tailor their solutions to customer needs.

Here are four things merchants should know about mobile card readers:

How Mobile Card Readers Work

In plain language, mobile card readers turn smart devices into payment devices. This allows businesses to accept payments anytime, anywhere. Businesses are finding a plethora of benefits from incorporating mobile card readers into their operations; however, the most significant perks include increased sales, improved customer engagement, and better flexibility for customers. This allows retail businesses to provide a more seamless user experience for their customers.

Helps Grow Your Customer Base

By offering multiple payment options for your customers to choose from, you’re letting them know that you care about their preferences. It’s not about you, it’s about them. Accepting all payment methods signals to your customer base that you sincerely care about their business and are willing to invest in the technology to offer better convenience and flexibility. By accepting more payment types, you’re opening the door to a larger customer base which in return, allows you to increase revenue.

 Speeds Up Checkout Process

If you’re looking to create efficiencies within your business, incorporating a mobile card reader into your operations may be a good place to start. According to an article by Reflexis, incorporating mobile solutions allows merchants to keep pace with their mobile-enabled customers who are continuously purchasing new technologies of their own. Adopting mobile card readers allows customers to avoid long lines by purchasing their items at any location in the store. This will also boost employee productivity by giving them the flexibility and agility to meet customer needs with fewer delays.

Increases Safety of Payments

Many people have the misconception that mobile readers cannot protect cardholder data as safely as a full POS system can. However, mobile solutions that accept payments on mobile devices are completely secure as well. While many are not physically connected to countertop POS systems, they still use the same encryption methods that other POS systems do. Cards that are processed through mobile solutions can only be decrypted by banks acquiring payment and are safe in merchant environments. Therefore, thieves will have difficulty hacking credit card information. Mobile payments also decrease the amount of time retail employees spend fumbling with cash. Instead, they can use that time to focus on providing customers with excellent service.

The ID TECH Solution

In recent years, more and more merchants have been using mobile solutions to bridge the gap between online and in-person purchasing experiences. The current purchasing experience has evolved and now requires companies to create seamless, personalized experiences where buying merchandise is directly tailored to each customer. Adding mobile solutions allows team members to directly engage customers while providing quick payment transactions. ID TECH provides the point-of-sale hardware that’s equipped with NFC technology to accept all popular payments and mobile wallet apps. Please see our entire line of secure and powerful mobile card readers by visiting our website.

About ID TECH

ID TECH has established a solid reputation in the industry as a leading payment peripheral provider with magnetic stripe, EMV contact, and EMV contactless expertise. We are also an OEM payment solution provider with the capability and willingness to customize solutions to fit our customers’ needs. With a strong foundation and continued success rooted in card readers, ID TECH is currently expanding its reach in the ever-evolving payments industry.

To learn more about ID TECH, please visit our about page.

 

When we hover our phone or smartwatch over a payment system at our local grocery store, vending machine, parking terminal, or other retail location, we rarely stop and think about the technological advancements that have taken place to get us to this point. While we may not think about it often, there are many factors that have played into the evolution of payment solutions – including enhancements in technology, increased customer expectations, and trial and error throughout the years.

It is common knowledge that payments are a crucial step in the interaction between a customer and the company they are doing business with. Payment marks a successful customer exchange, so it is important for companies to leverage the best payment solutions on the market and tailor their payment processes to their customers’ preferences.

To give you a better understanding of the evolution of payment solutions and how we got to where we are today, join us as we take a walk down memory lane.

 

History of Payment Solutions

Over the years, we have used quite the variety of payment solutions, and it is remarkable to look back on the past to see how far we have come. Even before the use of technology for completing transactions, people around the world have used insightful systems to track and organize payments.

Before 3000 B.C. – The earliest form of payment was known as bartering. People would simply trade items that held significant value to the other person including grains, livestock, animal hide and more. One example of this is in ancient China, where shells were used as currency.

3000 B.C. – Barley was the first official currency in the world. Unlike bartering, where an item could be one man’s trash and another man’s treasure, barley was considered valuable across the board. According to Agriplastics Community, the most common measure to control the exchange of barley was the Sila, which would amount to approximately one liter.

600 B.C. – The first coins appeared all the way back in 600 B.C. in what is now western Turkey. Because the coins were often made of precious metals, they had to be weighed to determine value. For time saving purposes, leather money was created out of deer and other animal skin.

500 B.C. – Roughly 100 years later, the Chinese invented paper which they started using as an alternative to coins and leather. Countries around the world were quick to adopt the use of paper currency, as it could be easily mass produced and was more convenient to carry around than heavy coins and large pieces of leather. Paper currency was the primary form of payment for hundreds of years.

18^th Century – In the 1800s, England and the United States both established gold as their standard of value which meant that the value of any form of currency was decided by first determining its value in gold. As time went on, people found it increasingly frustrating to carry around large sums of money. This led to the invention of paper checks and by the mid-1800s, they were the primary means of conducting large transactions.

20^th Century – While there were many payment methods throughout history, nothing compares to the success of the plastic payment card. The first bank-issued plastic card was created in 1946 by John Biggins and it set the tone for the many decades to follow.

 

Modern Day Payment Solutions

As you can see, payment solutions have come a long way. As customer preferences are continuing to shift toward contactless payments, mobile wallets and the use of RFID technology within watches and other devices is becoming increasingly popular. And, the growth of the ecommerce industry has required companies to search for reliable and secure payment methods for their customers paying online.

 

Credit and Debit Cards

Today, credit and debit cards are the payment method of choice for most people. Over the years, card payments have evolved to include magnetic stripes, chips and Near-Field Communication (NFC), which enables contactless payments.

Mobile

In 1997, the first mobile payment transaction was conducted by Coca-Cola. They used special vending machines where customers could pay by sending text messages from their mobile devices. Today, mobile payments are a very popular and viable form of payment across the world.  Many devices nowadays have a “mobile wallet” feature that allows customers to quickly and easily make purchases in-stores and online, withdraw cash from ATMs, and transfer money from person to person.

Contactless

As we continue to navigate the unprecedented times of COVID-19, many people are looking for ways to limit their interactions with both people and objects. One way they’re doing so is by using contactless payment systems which work by utilizing Near-Field Communication (NFC), a short-range wireless technology that allows for the contactless exchange of data over short distances.

While contactless payments were around before the onset of the COVID-19 pandemic, people have been much more receptive to adopting them into their everyday routine in their efforts to avoid contracting the virus. Even in a post-COVID world, it is predicted that contactless payments will continue to rise. In fact, MasterCard polled 17,000 consumers in 19 countries and found that they perceive contactless payments as “the cleaner way to pay.”

Unattended

As technology continues to evolve, unattended payment solutions continue to rise. Today, unattended payment solutions are becoming the new norm and you do not have to look very far to find one. Parking, ticketing, and retail kiosks, as well as restaurant drive-thrus, vending machines, and pharmacy dispensers are all examples of unattended payment solutions. Although they lack human interaction, unattended payments are often quick, secure, and provide an overall convenient experience for customers.

Biometrics

If you’re unfamiliar with biometric payments, they are carried out by using your fingerprint or other body recognition to complete a payment. An example of this would be the use of face recognition on your smartphone to unlock it. The same technology is used today to make payments. According to Frost & Sullivan analyst Ram Ravi, palm reading, iris- and facial-identification biometrics are all experiencing rapid market expansion and are predicted to grow in popularity over the next several years.

Payment Solutions of the Future

While you can’t accurately foresee the future 100% of the time, there are things you can do to give you a better idea of where payment solutions are headed. Paying attention and analyzing your customers’ buying habits will give you insight into who they are, what they buy, how they make their purchases and what payment methods they prefer. You should treat this information like gold, as it will allow you to determine shopping patterns and payment trends in the years ahead.

As mentioned previously, enhancements in technology and the creation of new payment methods will play a major role in the future of payment solutions. In fact, today’s most popular  payment solutions may disappear altogether as new advancements are made. Based on current trends, contactless card payments, mobile wallets, and voice-based purchasing solutions are predicted to rise in the future.

 

ID TECH: Building Payment Solutions for the Future

ID TECH is focused on building payment solutions for the future. We strive to provide high-quality products for a variety of industries and do so through our strong commitment to innovation. At ID TECH, we understand the unique demands of each industry and design solutions to fit those needs, including the following:

ATM – Our products provide secure, rugged, and future-proofed hardware to ensure quality outcomes time and time again.

Loyalty and Access Control – Through our new tap-and-go technology, it is easier than ever for your customers to redeem rewards, access concerts or sporting events, provide authentication, and more.

Parking – ID TECH is a leader in the parking industry due to its focus on keeping your parking technology safe, efficient, weather resistant, and easy to maintain.

Transit – Our payment solutions for the transit industries are durable, reliable, fast, and easy to operate. Our rugged, sleek payment solutions create an enjoyable and simple user experience.

Vending – Our fast and easy-to-use technology allows customers to grab their desired item and go. Our products are designed to provide user-friendly interactions while utilizing the latest in payment technology.

 

See the Future of Payment Technologies at NRF

Many of the payment industry’s future facing technologies will be on display at the upcoming tradeshow, NRF 2021: Retail’s Big Show – Chapter One, including some exciting new technologies that ID TECH will be highlighting.  Stop by the ID TECH booth to speak with our experienced sales team about the future of payment technologies!

 

About ID TECH

ID TECH has established a solid reputation in the industry as a leading payment peripheral provider with magnetic stripe, EMV contact, and EMV contactless expertise. We are also an OEM payment solution provider with the capability and willingness to customize solutions to fit our customers’ needs. With a strong foundation and continued success rooted in card readers, ID TECH is currently expanding its reach in the ever-evolving payments industry.

To learn more about ID TECH, please visit our about page.

 

Digital loyalty programs are becoming an increasingly popular way for businesses to connect with their customers and gain market share. But as the use of mobile payment platforms increase, how do organizations utilize mobile payment hardware to successfully manage and track transactions, while creating an enjoyable purchasing experience?

As a global leader in payment technology, ID TECH is examining loyalty solutions in various industries to see what companies are doing to enhance customer retention and stay ahead of their competition. In our most recent blogs, we examined loyalty trends in the transit and vending industries. Now, join us as we explore the top loyalty trends in the mobile industry:

Loyalty Apps

Loyalty programs are a great tactic that companies can use to show customer appreciation and drive retention. Because we live in a technology-driven world, a majority of consumers have their own smartphone that they take wherever they go. As such, many companies are integrating their loyalty programs into applications. This allows consumers to keep better track of their rewards and influences them to make frequent purchases in order to earn rewards points.

Points and Rewards

Reward points can be earned via mobile app or through an in-store purchase. Customers that are a part of the loyalty program are able to cash in their points for special discount offers or free items. There are multiple ways customers can wrack up points:

• Social sharing to promote sweepstakes
• Checking in on social media and/or their loyalty app
• Participating in special offers, such as ‘Buy 2, Get 1 Free’ etc.
• Participating in gamification incorporations, such as ‘Spin the Wheel’

Mobile Coupons

Because everything is transitioning to mobile, companies are taking things such as coupons and making them available on technology as well. Now, customers don’t have to worry about going out, buying the local paper and cutting up coupons. They can simply subscribe to the store loyalty program and receive mobile coupons via email, text, or mobile app.

In-Store Sign-Ups

Although a majority of people are switching to mobile loyalty solutions, there is still some difficulty when it comes to getting previous generation to participate. To combat this, many companies have employees dedicated to helping them sign up while they’re in the store. They walk them through the process and get them set up.

The ID TECH Solution

ID TECH is a leader in providing innovative loyalty payment solutions to organizations across the globe. Through our new tap-and-go technology, it is easier than ever for your customers to redeem rewards, access concerts and sporting events, and so much more. In this age of online retail, retailers are competing to gain market share with new customers; boost your brand awareness, customer loyalty, and market share with ID TECH’s digital loyalty solutions.

One of our latest loyalty solutions, the VP3300, allows you to incorporate triple-tracks MagSTripe, smart card, and contactless technologies. This all-in-one reader enables the acceptance of NFC/ contactless payments including Google Pay, Apple Pay, Samsung Pay, Interac, MasterCard MCL, and more. Learn more about the VP3300 and download the datasheet here.

About ID TECH

ID TECH is a leading payment peripheral provider with expertise in magnetic stripe, EMV contact, EMV contactless, and OEM customization solutions.  We have a strong foundation and continued success rooted in card readers and are always expanding our product offering to provide innovative solutions for the ever-evolving payments industry.  Payment security is an integral part of our product offering, and ID TECH as a company prides itself at being at the forefront of payment security in our design, development, manufacturing, and sales processes.

To learn more about ID TECH, please visit our about page.

 

In our previous article, we discussed Payment Trends in the Vending Industry and the technological advancements that have resulted from the changes in consumer behavior. Now, we will look at how mobile payment solutions are being rapidly adopted and integrated in stores and services across the world.  Applications such as PayPal, Apple Pay and Google Pay are becoming increasingly popular as the years go by. In fact, the mobile payments market is expected to reach a value of $4.69 trillion by the year 2025.

As mobile payments skyrocket, companies are investing in mobile payment technology and paying close attention to consumer behavior to get a better grasp of their payment preferences. Here are some of the top payment trends in the mobile industry right now:

Increase in mPOS

Mobile-point-of-sale (mPOS) technology allows businesses to take their payment solutions wherever their customers may be. With mobile payment solutions, they can accept payments even when they’re not physically in their designated storefront.

Take popular fast food restaurant Chick-fil-A, for example. When their drive thru is busy, oftentimes they have their employees walk around to each car with a mobile device where they then take your order and complete your payment. This allows them to speed up the checkout process and get their customers on their way faster.

More In-Store Mobile Payments

Many businesses have had the option of accepting mobile payments for some time now, however customers still preferred to pay with cash or credit card. Now, contactless payment methods provided by mobile companies such as Apple, Samsung, and Google are being adopted at a higher rate than ever before. Because they offer mobile wallets that allow consumers to pay without touching any payment terminals, along with the extra benefit of additional security and authentication features, customers have been more inclined to pay for their purchases with their mobile device.

While mobile wallet payments only amounted to $75 billion in 2016, they are forecasted to grow to $500 billion by the end of 2020 – or about 80% over five years. Visa reports that already “29% of Americans now make zero weekly purchases with cash, with the percentage of people who use cash for everything dropping from 24% to 18% since 2015.”

Biometric Authentication

Payment industries have long been looking for advanced security methods to ensure sensitive data is safe from outside tampering. Face and finger scanning are two of the top mobile security measures available right now and are quickly replacing passwords and other authentication measures.

As mobile payments increase, we are likely to see an increase in biometric authentication as well. Biometric authentication is used in computer science as a form of identification and access control. It has become a reliable way for merchants to verify the identity of their customers and partners, and has also proven effective for preventing mobile wallets from being hacked.

E-Commerce to Drive Mobile Payments

We live in a world where convenience is everything to customers. The increase in mobile devices has sparked the growth of the e-commerce industry and customers are turning to their mobile devices to purchase groceries, shop their favorite stores, and everything in between. According to the E-Commerce Foundation, more than 25% of consumers purchase via mobile devices weekly rather than in-store.

Especially with the current COVID-19 climate, customers are more likely to shop online to comply with social distancing and stay-at-home orders. During these unprecedented times, many companies are providing free shipping and other incentives to customers who choose to do business via their mobile device.

ID TECH’s Mobile Solutions

ID TECH offers a variety of payment solutions for various industries including ATM, loyalty, parking, transit, and vending. Of those solutions is ID TECH’s VP3320S, a PCI PTS 5.X SRED mobile payment device that supports all contactless payment methods from tap-and-go cards to payments from mobile wallets. It is able to connect to iOS and Android host devices and is housed in an ultra-compact design, making it the ideal unit to be integrated into a mobile payment solution.

Learn more about our mobile solutions here.

About ID TECH

ID TECH is a leading global payment peripheral provider with expertise in magnetic stripe, EMV contact, EMV contactless, and OEM customization solutions. We have a strong foundation and continued success rooted in card readers and are always expanding our product offering to provide innovative solutions for the ever-evolving payments industries. Payment Security is an integral part of our product offering, and ID TECH as a company prides itself at being at the forefront of payment security in our design, development, manufacturing, and sales processes.

To learn more about ID TECH and our dedication to achieving payment security, please visit our about page.

 

Last week we discussed how COVID-19 is impacting payments in the vending industry.  Today we will look at how the global pandemic has affected the mobile payments industry.

Mobile payments are a growing trend that multiple industries utilize for convenience and faster checkouts. However, the arrival of the novel coronavirus, or COVID-19, has created a greater demand for mobile payment solutions to increase the speed, safety, and security of business transactions.  Since consumers have been forced to drastically change their purchasing habits, businesses have had to respond with newer, safer technology to maintain customer safety. Now, as businesses begin to open up again, mobile solutions are being deployed and mobile wallets are being accepted because businesses want to extend extra protections to themselves as well as their customers for safety purposes.

The Power of Line Busting

Mobile solutions were intensely popular upon release. However, they experienced delays in countries like the U.S. when businesses began to drag their feet and delay new technology investments. This resulted in a gap between the availability in developing technologies versus the actual support and deployment of said technologies in real world settings. However, mobile solutions and mobile wallets have now begun to rise again in the face of this pandemic.

There are two kinds of mobile solutions: solutions that attach to phones, and solutions that accept contactless payments via mobile wallets. Both have strong ties to retail because of their ability to minimize lines while speeding up and improving a customer’s in-store purchasing experiences. As COVID-19’s spread has become more prevalent and businesses have limited the amount of customers who can enter their stores,  line busting—completing a sales transactions with a mobile solution so customers don’t need to stand in line—is being used to reduce wait times and quicken transactions. As a result, the now normal line of customers waiting outside of a business has seen a decrease in length and in wait time.

Secure Mobile Payments

The arrival of new technology always brings new critics along with it. Many times, when new payment methods and technologies are developed, consumers ask the same question: “Is my data going to be safe?” Mobile payments are as secure as any other payment method as long as they have current security certifications and safety measures in place.

Misconceptions around the security of mobile payments are another reason why the segment’s   growth has been hampered but COVID-19 has brought in a changed perception and we are now seeing more and more consumers reaching for their smartphone for faster checkouts. However, there was never anything to fear because mobile wallets tend to use digital tokenization, or replacing sensitive cardholder data with a virtual account number, to ensure users have safe transactions.  Each mobile wallet utilizes tokenization differently, but consumer information is never plainly kept in a mobile wallet; all sensitive data is at least partially encrypted.

Mobile solutions that allow the acceptance of payments on mobile devices are also secure as well. While many are not physically connected to countertop POS systems, they still use the same encryption methods that other POS systems do. Cards that are processed through mobile solutions can only be decrypted by acquiring banks and are safe in merchant environments. As a result, it is as impossible to extract data from mobile solutions as it is from any other solution.

The Rise of Mobile Wallets

Apple, Samsung, and Google all offer mobile wallets, or encrypted card information stored on a mobile device, for contactless, mobile transactions. Even Facebook is creating Facebook Pay to compete with the other payment applications. In the face of COVID-19, many mobile wallet sceptics have turned to the new technology to prevent infection from physically inserting or swiping their payment cards with potentially contaminated payment devices.  Mobile wallet payments allow consumers to make contactless payments without touching any payment cards or payment terminals, making them the most hygienic option for transactions. The sudden arrival of COVID-19 has caused a huge shift in consumer’s daily lives and has resulted in them being forced to be comfortable in engaging with new mobile and contactless technologies to keep themselves safe.

The mobile industry has made huge growth strides in the face of a deflating economy, and as businesses continue to open and navigate payments during COVID-19, mobile payments are sure to develop and spread across all industries even farther.

To learn more about ID TECH’s mobile solutions, click here.

About ID TECH

ID TECH is a leading global payment peripheral provider with expertise in magnetic stripe, EMV contact, EMV contactless, and OEM customization solutions. We have a strong foundation and continued success rooted in card readers and are always expanding our product offering to provide innovative solutions for the ever-evolving payments industries. Payment Security is an integral part of our product offering, and ID TECH as a company prides itself at being at the forefront of payment security in our design, development, manufacturing, and sales processes.

To learn more about ID TECH and our dedication to achieving payment security, please visit our about page.