6 predictions about the development of payments for 2022

[Carding Forum]

Ingenico, one of the leading manufacturers of POS terminals in the world, presented its forecasts for the development of the payment market in 2022. These include things like the omni-channel strategy for merchants, payment security as one of the biggest challenges, and the growing interest of retailers in adopting new payment solutions.

According to Ingenico, 2015 was a year of rapid growth in the payments market worldwide. We have witnessed the emergence of new products and solutions, as well as the expansion of the network for accepting new payment methods. In 2016, the market is expected to see even more innovations and transformation of the existing infrastructure.

1. Merchants will provide value-added services.

In 2021, there was a lot of talk around NFC, EMV, encryption and tokenization. Experts are confident that these topics will remain relevant in 2022 as well. Towards the end of the year, as people become more comfortable using new technologies, the market will shift towards value-added services. They can include a wide range of services, from cross-channel inventory management to a variety of loyalty programs, etc. In addition, according to experts, business owners are already thinking about expanding interaction with terminals, in addition to accepting payments, for example, integrating business applications.

2. Mobile POS terminals will become ubiquitous.

Experts predict that in 2022, small and medium-sized enterprises will implement POS systems based on tablets, which will allow store owners to develop and keep up with their customers. As for the large merchants, they will be expanding their landline POS systems by adding an mPOS solution. This will allow them to get rid of queues (consultants can scan barcodes, accept payment and print a receipt anywhere in the store) and manage inventory more efficiently.

3. The ecosystem of contactless / NFC payments will grow.

With the advent of more and more mobile wallets, in 2021 such a term as "the war of mobile wallets" was repeatedly sounded. But this is not entirely true. There must be a single ecosystem. There is no single dominant solution that will govern others. This is not to say that Apple Pay or Android Pay will be the leaders, although many mobile wallets really strive to be like them. We will also see many banking initiatives in 2022. In addition, a number of merchants are now adopting Starbucks' experience and are working to implement their own payment acceptance solutions. Thus, the entire ecosystem will grow, which is undoubtedly positive for all its participants.

4. The omni-channel strategy will become a reality.

The omni-channel concept will be among the top trends in 2022. It will allow merchants to provide their customers with the opportunity to pay in various ways and through the most convenient channel (online, mobile, self-service and directly at retail outlets). As a result, the buyer chooses the most convenient channel for the sale and purchase transaction and shows loyalty to the company.

5. Payment security will continue to be a central focus.

Major payment data breaches in 2020 and 2021 forced merchants to rethink their approach to security. According to experts, 2022 will be the year of strengthening the security of POS systems. Point-to-point encryption and end-to-end encryption will come to the fore when it comes to protecting POS systems from malware.

Point-to-point encryption is an additional mechanism used to protect cardholder data during its transfer from the payment terminal (entry point) to the gateway processor (processing point).

End-to-end encryption (subscriber encryption) - protection of information transmitted by telecommunications using cryptographic methods, directly between the sender and the recipient.

6. More merchants will support a variety of payment solutions.

One of the trends already now is the installation of vending machines (vending machines) and kiosks in traditional retail outlets. In these machines, you can select the product of interest and pay for it in a contactless way using a card or mobile. Retailers are confident that this will relieve queues and cashiers and provide maximum convenience to customers. And experts predict that in the near future there will be electronic stores, which will have several kiosks and electronic storefronts. The buyer will be able to purchase the goods without wasting time on the queue and communication with the cashier. By the way, similar self-service terminals appeared in Kiev McDonald's. An overview of the functionality of these devices can be found here.