With huge new additions in the payment space including the debut of Apple Pay and the EMV, 2014 was a defining year for payments technology.  From mobile payments to security strategies, it appears that in 2015 the payment space is once again poised for some more watershed moments.

Here we will quickly break down five key payment trends to look for in 2015:

  1. EMV:
    EMV is shorthand for Europay MasterCard Visa, referencing the three credit card providers who first created this payment standard in Europe a while ago. EMV is a payment technology that relies on both a chip that has been embedded into a credit or debit card, rather than the far less-secure magnetic stripe on the back.  As of October 1, 2015, the United States will be the final developed country to officially adopt EMV and move away from magnetic stripe technology.  On that date, all credit card brands will be shifting the liability for credit/debit card fraud from themselves to the merchants, unless they have changed their POS technology over to the EMV standard.

    This shift in the liability from the corporations to the individual merchants is prompting retailers, restaurateurs and merchants in general to upgrade their entire POS infrastructure before the October deadline to avoid liability and penalties.  Many of these merchants have begun the changeover process as it can take months of testing to implement these changes and go live with them in time for the October deadline.


  2. P2PE:
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    P2PE Stands for peer-to-peer-encryption. It is a security standard designed to protect credit/debit card data within the payments process.  Due to the multitude of high-profile credit card breaches in 2014, P2PE has really become the standard in the United States, as the cold hard reality is that these could have potentially been prevented had merchants implemented P2PE in to their POS systems and payments networks.

  3. NFC:
    NFC stands for Near Field Communication, and it is the basis for contactless payments methods, like Apple Pay. Typically NFC and EMV technologies will be working in tandem.  In fact, as more merchants upgrade their POS systems for the EMV deadline in October 2015, typically these new systems are already enabled for NFC.  Again, the United States is behind Europe and Canada in embracing NFC technology for payments, however given the October deadline it seems clear that customers will begin to ask for this by the end of 2015 for payments.

  4. Tokenization:
    Tokenization is the process by which a debit or credit card number is replaced by a value called a token. In spite of the fact that the general public assumes that Apple was the inventor of tokenization – it is after all a part of Apple Pay – the truth is that it has existed for a while now.  Payment processors, rather than the merchant or credit card company typically issue tokens.  Tokens are unique in that they eliminate the need for a merchant to be forced to store customer data within their own system, and then stored and used in place of credit/debit card numbers to process subsequent transactions – thus helping with exposure to data breaches like we saw in 2014. 

  5. Mobile Payments
    Mobile POS, which gives customers the ability to complete payment whether inside of a location or even in the car, is a big trend in payments. These systems can be used to check in for a reservation, pay for a meal or bar tab; you name it.  Mobile payments technology, particularly Tablet POS systems, give staff the ability to accept payment tableside rather than taking a customers card with them back to a stand-alone POS system.

Now, none of the trends listed here are brand-new to the payments marketplace – they are already found in a multitude of industries, but all of these should be in every merchants’ plans for 2015 in order to offer fully secure payments options to customers.

Source: Hospitality Technology Magazine