Cash payments are going obsolete!
This might sound surprising but just take a look at the statistics. As of 2018, more than 900 million people have started using mobile payments. By 2019, the numbers will exceed 1 trillion.
However, in the United States, cashless payments are not as popular. Take a look at some challenges this industry is currently facing:
Chargebacks and Frauds
With digital wallets and online payments, you don’t need to have your card present with you at all times in order to make payments. Sure, it’s convenient but it also puts you at risk of fraud and data theft.
EMV technology addresses some of these issues. Furthermore, fingerprint scanning and biometrics have also made cashless payments more secure. Some of the biggest names in the industry are also working towards creating their own security solutions like tokenization.
Apart from that, another problem that merchants need to deal with is chargebacks. Chargeback is when customers report fraudulent activity and ask the company to reverse transactions. Not only are they costly for businesses, they also result in closed accounts.
People Avoid Cashless Payments
The cashless payment industry has grown rapidly in China however; in United States, user adoption is slower. As stated earlier, a lot of this has to do with security concerns that people have regarding cashless payments.
Americans are used to making cash and credit cards based payments. They feel “if it isn’t broken why fix it”. For companies, it’s quite challenging to change that mindset.
Payments on Different Platforms
It’s quite challenging for companies to develop a single system which works for multiple mobile networks and operating systems (iOS and Android).
SMS based payments and Near Field Communication has managed to address these issues but additional measures are required.
Furthermore, with the growth of e-commerce industry, people are no longer restricted to a specific region. They can purchase products from different parts of the world.
However, in order to do so they need to make sure they the payment service provider has the infrastructure to support these payments.
Technical integration in itself is a major challenge. The payment system needs to be compatible with the other systems that you already have installed. The last thing you want is liquidity problems and delays in payments.
Are you thinking of adopting cashless payments? Get in touch with UIC World. They offer EMV payment systems. With these systems, you wouldn’t have to worry about data security. Apart from that, they also offer near field communication products.
You can contact them at +1-510-438-6799.