What’s in Store for 2014?
As the calendar turns over yet again and we near the middle of the decade, the issues surrounding the card-not-present space continue to evolve. Mobile payments, security breaches and the continuing shift to true omnichannel experiences continue be top of mind for CNP merchants and the companies that serve them. We’ve invited several of our readers, including retailers and service providers, to make predictions or pass along their thoughts about the coming year. What issues will dominate the list of concerns for those engaged in the CNP payments space? Our experts tell us what’s on their mind.
Mobile commerce, enabling a new level of interaction with consumers, will bring consumers back into stores by integrating mobile technology into the more established marketing channels. Technology such as QR codes and geo-targeting applications will help mobile commerce platforms see their influence in the global marketplace grow exponentially.
David Pipe, global chief marketing officer, ZNAP
We see an ongoing convergence of payments across all sales channels. CNP transactions now occur routinely in traditionally “customer-present” environments such as coffee shops, taxis, parking meters and trains, where consumers use smartphones to pay in person.
Michael Liquornik, president and owner, Fin-Serv Advisors
The biggest areas e-commerce consumers will look at this year will revolve around convenience and speed of service, which will need to come from advanced order algorithms, analysis and less manual reviewing of orders. This will encompass using mobile commerce, phones and tablets for convenience.
Chris Logel, loss prevention regional manager, Shoe Carnival
The PIN likely will evolve as a method to improve security. As new authentication methods and consumer experiences are presented to the marketplace, the payments industry must be cautious about how online authentication is adopted. The industry must be capable of consuming a variety of authentication schemes across all devices (think cars, TVs, tablets, etc.) to enable innovation, as well as interoperability.
Terry Dooley, senior vice president and CIO, SHAZAM
More regulatory activity will come from the Federal Trade Commission and the Consumer Financial Protection Bureau and other agencies who are looking to hold processors and ISOs responsible for the conduct of the merchants they allow into their gates. We’re seeing an uptick in lawsuits and investigations. All processors and ISOs (as well as the sponsor banks) need to take a fresh look at their underwriting and monitoring policies and practices.
Attorney Ellen T. Berge, partner, Venable LLP
Mobile apps will be the most important area of growth for payment technology. Payment processing costs will shrink. But lower cost may risk great service, and more importantly, better conversion rates, meaning merchants will ultimately lose more in sales than they are initially saving. In response to the Target hack, consumers will have more questions about card security. Digital credit card issuing may accelerate, which will make it much easier for the bank to erase the old card information and issue a new electronic card.
Ralph Dangelmaier, CEO, BlueSnap
More consumers will accept the idea of taking the “payment” out of the process with an e-wallet in 2014. The stories about breaches will force merchants to beef up their payment/processing systems. Regulatory action might force increased security. And look for additional focus on 3DS “v2.0,” and both Visa and MasterCard coming out with new options for merchants.
Rueben Rodriguez, senior product marketing manager, RSA, The Security Division of EMC
Studies show that the total data footprint of humans doubles every two years. As this new vantage point on human behavior becomes possible, there needs to be a democratization of Big Data for us all in order to make commerce safe. There simply aren’t enough fraud data scientists to go around, so in 2014 we will see business payment systems bridging the gap between the data science world and the rest of us, allowing non-technical people to interact with Big Data.
Nuno Sebastiao, CEO, Feedzai
Expansion beyond the card-not-present environment towards a true omni-channel experience that would include retail, mobile and in-person cash payments will be a major focus of 2014. Payments will need to embrace, support and innovate within the omni-channel movement, not merely react to it.
Jeff Thorness, President/CEO, Forte Payment Systems
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