A brief look at the background of payment processing system can tell us a lot about how far the industry has come in such a brief time. The initial payment processing terminals started life as a simple system consisting of a low-powered chip, keypad, single-line screen and modem. They weren’t able to support any external devices like snare printers or pads. The rapid evolution to customer-facing terminals a couple of years later saw the addition of color screens, pin pads and hot 32-bit processors. The change was comparable to moving from a Nokia 6210 to an iPhone.
But obviously, tech-types did not stop there, along with the greater technology becomes, the more consumer expectations grow. Streamlining payments to make them easier and more secure is part of creating an efficient, noninvasive and high quality spending experience. So as to keep companies successful and clients happy we will need to adopt these demands. To do this we have to make certain that our payment processing apparatus and POS systems have the capacity to accept these new technologies.
So what direction can we expect payment processing technologies to take?
Currently, just about all customer-facing terminals systems accept smart cards. These are the credit/debit cards which have the microchip in that imply that clients just have to input their personal pin number into a keypad to produce a payment. A more recent development is the growing preference for contactless payment that only requires close proximity between your smart card and the terminal. Usually used for smaller payments, some credit card companies and banks have really capped spending limits which increases the powerful security measures the system has set up.
Both chip and pin and contactless transactions work with frequent cash registers. However, they’re also exceptionally well suited to cloud POS due to their mobile nature. With transactions being undertaken on iPad or other cellular POS apparatus, cheque payments could be made anywhere, anytime. An added benefit of cloud-based POS is that receipts can be emailed directly to the customer, streamlining the process further
As we proceed into the future one form of payment processing that’s called to become extremely popular is the ability to make payments using your cellular phone. Using a process called near field communication (NFC for short), experts believe that a lot people will adopt this new system as a secure way to make transactions, eliminating the need for credit cards and money altogether.
There’s not any definite way to predict the future of payment processing technologies. But, we can be sure consumer demand and anticipation will continue to grow. Whether your POS is presently traditional or cloud-based, having the ability to adapt to new developments will be essential to the sustainability and expansion of your company.