July 26, 2013
In a Transaction Trends feature story, Mitchell Hollin explains how consumers’ evolving demands of mobile technology, purchasing and banking are driving the next generation of payments. Merchants, technology vendors and service providers must be able to accommodate such demands for mobile payment options, customized rewards and safer transactions. Hollin makes three key points:
“Hollin sees a different class of customer evolving with different expectations. ‘Younger consumers have grown up with technology. They want an enhanced experience and they are willing to share their personal information in exchange for value, such as special offers, discounts, coupons, and loyalty privileges…'”
“[He also] sees merchant acquirer generalists being pushed out by specialists. ‘Focusing
on an industry, such as hospitality, restaurants, or gyms, and adding value specific to the business puts these niche merchant acquirers in a better position to take processing business away from generalists.'”
Regarding the point of sale moving away from cash registers to tablets, “It’s already happening fast in restaurants and retail and changing the shopping experience for consumers, while also enabling data collection. It’s more efficient than legacy solutions because you can do more at a fraction of the cost and time, but it leaves legacy vendors exposed by the cost of replacing their infrastructure.’ ”
For the complete article, click here.