FEATURE ARTICLE
From The Retailer Report...
Future Technology News
While we are not yet a cashless society, today more than half of today's retail transactions are card-based. The use of checks are
decreasing and PIN-debit cards are increasing.
According to a recent eWeek article, "Are Credit Cards About to be Dethroned?" it states, "Although retailers have loudly
complained about credit card fees for years, 2007 is suddenly seeing a surge in active support for alternative payment methods." It
further says, "The retail industry is traditionally slow to adopt new technology and new payment methods, but once some retail leaders
get comfortable with the idea, it can snowball into a very rapid trend."
We're seeing self-checkout, buy online and pickup-in-store and—most recently—with contactless payment. Contactless payment cards, which
transmit account information wirelessly and eliminates the need to swipe or hand cards over to merchants, have been introduced. Contactless
payments are increasingly being accepted across the US, and have been adopted by some major retailers.
Contactless payments enable consumers to simply tap or wave their payment card near a specially equipped merchant terminal. Payment
information is transmitted wirelessly, providing quick, simple and secure transactions that eliminate the need to swipe the card through a
reader, or hand it to a merchant.
WaMu recently announced its trial contactless cards and, with contactless card transactions, the payment is authorized in seconds and no
signature is required for most purchases under $25. The Visa payWave and MasterCard PayPass contactless cards also have a magnetic stripe
and function as traditional credit and debit cards in merchant locations that are not equipped for contactless transactions.
Growing strong are non-traditional online payment options, like Bill Me Later, Google Checkout, and PayPal. In a recent study, some of the
largest e-commerce chains have embraced non-traditional payment methods, finding a 267 percent increase in such acceptance in four months.
Could this mean that credit cards would be threatened with new payment alternatives?
Aligned with this study was a recent report titled "Payment Preferences Online" by JupiterResearch who found that about
one-third of the top 40 online retailers take non-traditional payment methods.
Bill Me Later (owned by I4 Commerce) is a strategic advantage for retailers because it helps them build incremental sales by converting
"looky-loo's" into buying customers. Retailers are realizing that when customers have access to flexible financing options,
they are more likely not just to buy, but to return more often and purchase more. Bill Me Later, if successful, could signal the quick
migration of alternative payments from merely online to brick-and-mortar.
Then there are some retailers who are bucking the industry trend by supporting e-Check procedures. That will allow stores to electronically
accept checks, which can clear much faster than written checks.
When paying for merchandise online, customers are able to shop in a safer, more convenient way. Security standards for anti-fraud are
improving and PCI (payment card industry) security standards have been introduced.
Biometric authentication technology is a security measure that has seen early adoption. Authentication methods used are voice,
fingerprints, or any method that identifies a person for mobile and internet payment transactions. Essentially, it deals with security
access that authenticates an individual and provides a highly reliable and accurate form of identification.
Just imagine a day when the only item you'll need to take to the supermarket to complete a transaction is your index finger. Biometric
scanning to make transactions is expected to be one of many new methods that are part of a revolution in payments technology already taking
place.
Leading the charge in this area is a US company, Pay By Touch, which uses biometric technology to allow consumers to pay and get loyalty
discounts at checkout counters. The concept is a reality in a limited capacity in some places but observers believe the fingerprint
checkout technology could become mainstream in five to ten years.
It's a new payment landscape out there. Learn how your business can meet customer expectations AND gain a competitive edge by contacting
a One Step Data Sales Consultants today for a free business analysis and discuss how you can prepare for future technology for your
business. Call toll-free at (866) 617-8181 or email us.
You can get a FREE BUSINESS ANALYSIS of your store with One Step Retail Solutions - schedule your appointment with one of
their expert retail consultants to determine solutions for your needs.
