In a recent PR Newswire article, the growth of credit card processing, online payment processing, ETF, and ACH industries are reported to grow immensely in the next decade, reaching an estimated $70.3 billion by 2022.
This number isn’t surprising, as the growth of electronic payments and ecommerce has increased significantly in the past couple of years.
Things to keep in mind: along with the increase in revenue, and the increase in ecommerce traffic, fraud will also increase. Luckily, the EMV initiative will drastically decrease point-of-sale fraud, but there are still many small merchants who are unsure about EMV chip card technology. Many are uneducated about the EMV shift; if they don’t know about the technology that can help them, they most likely don’t know about the technology that can hurt them (think: card skimmers, online hackers, and data breaches).
The future of payment processing is bright, because the revenue from credit cards and the consumers’ usage of cards is increasing drastically.
However, there also exists the community of merchants who still have not drifted away from running a cash-only business. Consumers still believe cash is the most convenient payment method, according to this article. Why? Less fraud. Data breaches don’t affect their funds. It’s simple and easy to use.
Will the millennial generation move away from the consumer-cash preference? The fact that industry pundits forecast a large increase in credit card processing and online payment processing supports that notion.
Share your thoughts! Will you forever keep cash as your number one payment method? Do you use mobile wallets instead of your old leather wallet?