How retailers and payment systems are adapting to tech advances

Retailers and payment systems are evolving rapidly with modern technology. These days, most payments have shifted from checks and credit cards to digital options. As a result, giants like Visa and Mastercard are looking to new business arenas to stay relevant. 

At the same time, more and more retailers are also adopting digital currencies like Bitcoin and Ethereum as they offer faster, safer, and decentralised ways to pay. Meanwhile, innovations like fingerprint payments and tokenization are transforming how we handle transactions. 

With all of these factors driving payment innovation, retailers and payment processors are navigating the rapidly evolving tech advancements of the day.    

How Traditional Payment Systems Are Adapting

Traditional payment systems like Visa and Mastercard are adapting to the changing technological landscape. Here’s how.

Visa’s Popularity with Online Platforms and In-Store Purchases

Despite all the new-age competition from e-wallets and cryptocurrencies, Visa remains a popular payment method used all over the world. Many people still use a Visa card for its convenience, speed, and safety. In the 21st century, Visa payments for online services have grown enormously. This has led to it becoming one of the leading payment methods for services like online shopping, streaming services, and iGaming accounts. 

For iGaming platforms in particular, so many players still rely on Visa payments that now there are even dedicated Visa casino platforms. At these sites, Visa can be used to deposit funds and withdraw winnings. However, iGaming is also a barometer of how much times have changed with payment systems. 

However, across the world, Visa cards are still a popular option for daily purchases because they are easy and secure to use. People commonly use Visa for shopping in stores, buying things online, booking travel, and paying for subscription services. Over the years, they have also adapted to make contactless payments with tap-to-pay tech, a more widely used option—offering a faster, more secure, and even more hygienic way to transact.

Mastercard Acquisition of Recorded Future

On the other hand, the other payment giant, Mastercard, in a move to strengthen its cybersecurity capabilities, purchased Recorded Future for $2.65 billion. A company leading in finding and stopping cyber threats, Recorded Future is popular with businesses and governments globally.

It uses Artificial Intelligence (AI) to deliver real-time threat insights and predictions to enhance security. It scans large amounts of data from the open web, dark web, and other sources to find possible risks and weak spots before they can be exploited so companies can act early and prevent attacks.

A survey of American adults in September 2023 identified credit card fraud as the most common form of financial cybercrime. Recorded Future’s advanced tech combined with Mastercard’s resources can help retailers protect their customers from cyber threats, data leaks, and fraud, making transactions safer. 

Retailers Embracing Crypto

However, as mentioned, more and more locations, brands, and stores are now accepting cryptocurrencies like Bitcoin and Ethereum as payment. While the adoption of cryptocurrencies in retail has been gradual, there has been a growing trend of businesses accepting digital assets driven by factors such as convenience, privacy, and the potential for lower transaction fees—even for cross-border transactions. 

People’s opinions about cryptocurrencies have changed over time as many more people now find them convenient, private, and often cheaper. As a result, several major companies have already jumped on the crypto bandwagon. 

With Microsoft, customers can use Bitcoin to buy games, apps, and other digital content on platforms like Windows and Xbox directly through BitPay. Microsoft was one of the first major companies to embrace cryptocurrency payments in 2014. In the fast-food sector, the likes of Starbucks and Burger King have also embraced crypto in varying ways.

Benefits for Retailers and Consumers

For retailers, accepting cryptocurrencies brings several advantages. First, businesses can save money since transaction fees are often lower. Payments are also faster, so customers don’t have to wait long. Finally, cryptocurrencies are decentralised making them safer and more resistant to threats like fraud and hacking when compared to traditional payment systems.

For customers, crypto payments offer greater privacy since they don’t require sharing personal information during transactions. Additionally, cryptocurrencies can be used anywhere in the world. They are also cheaper and easier for international transactions, unlike traditional methods.

Challenges 

Even with these advantages, it’s still hard for many stores to start using cryptocurrencies. A big problem with cryptocurrencies is that their value can change quickly making it difficult for both businesses and consumers to predict their worth. Also, regulations around cryptocurrencies in different are still unclear which can be concerning for some retailers

Scalability is another challenge; some cryptocurrencies struggle to handle large numbers of transactions at once. And while crypto transactions are secure, the digital wallets used to store them can be vulnerable to hacking, raising security concerns.

Emerging Technologies

Cryptocurrencies aside, many new technologies are also changing how we pay in stores. Here’s a look at two of the most significant options so far.

Contactless Payments

When you use a QR code to pay, you don’t need to physically touch the payment terminal or insert your card. Instead, you simply scan the code with your smartphone camera, which triggers the payment process. Contactless payments are a convenient and hygienic payment option and are set to keep evolving with technologies like NFC being leveraged to further improve them.

Biometric Payments

Many stores are now using biometric payments, especially where people use their phones a lot. For example, Amazon Go stores let you pay via facial recognition software. Meanwhile, Apple Pay and Samsung Pay can use your fingerprint or face to pay.

Biometric payments are convenient and secure. With just a glance or a touch, you can pay for your purchases quickly and easily, without the need to fumble for your wallet or remember passwords.

Conclusion

The world of payments is evolving quickly. Retailers and payment systems are adopting many new technologies to make payments faster, safer, and more convenient for consumers. As technology improves, we will likely see far more new and cool ways to pay emerge.

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