The rise of online merchants along with other credit card payments has set the standard for vendors across the globe. Although technology continues to grow in great leaps and bounds, and merchant credit services are continuing to evolve bringing in greater changes to the industry of merchant services.
Today, we will look at new industry trends for 2017 and what to expect. Let’s get started!
Current Trend on Payment System Industry
The global economy has recently gone through an enormous crisis that affects the way money circulates around the world. Currency volatility has significantly increased, and this has made international traders and investors to hoard their funds in safe haven portfolios such as bonds, precious metals, and other long-term investments.
On the other hand, the global economy has started resurrecting by the resilience of other financial sectors such as the remittance of new companies and payment gateways. This has been made possible by the phenomenal growth of merchant services, and as a result; foreign exchange seems to have started to normalize. This shows that the payment system industry is a force to reckon with in terms of market depth.
Boom of Smartphones
Image source: igeninsight.com
In the past few years smart phones and tablets are like a technological snowball rolling down the hill picking up speed while here forcing online shops to incorporate payment gateways. Since it’s important for digital marketers to provide a convenience for their customers, the solution has been to go through merchant services, especially if they are too small to develop their own payment system.
Nowadays, almost many transactions are done online. Buying and selling of products and services can now be accomplished in just one click. In the past, people were apprehensive about using online payment systems. Today, many people seek secure payment systems as a trusted payment source.
The Current Challenges of Merchant Services
Despite the growth within the payment system industry, it is not exempted from challenges. In other countries such as China, every app does not need to go through any third party merchant service provider. This is because every app is a combination of an e-commerce and payment gateway along with its ultimate features. This means they don’t need to integrate into any external services.
The problem is that many webmasters and tech companies around the world have started to follow similar models. If this trend pursues, merchant services should offer something more competitive that can prevent merchants from abandoning external services.
In addition, payment security is still an issue. Although merchant services have greatly reduced the risk of online payment, there are still instances that some merchant service providers fail to deliver it.
Opportunities for Merchant Services
Nevertheless, there is light at the end of the tunnel. Small businesses are less likely to develop a standalone platform. So far, only big companies can afford to ignore third party merchant services.
The army of small businesses is still a strong market that has potential to bring unlimited opportunities to merchant services. With 2017, brings a full hand and uncertainty from the internet is not discounted. Merchant services should continue to innovate and find ways to connect to as many merchants as possible.
There are a lot of payment gateways many businesses and entrepreneur can choose today. Furthermore, customers will also benefit as they can reduce the risk of paying directly to an unknown merchant, and vice versa. This 2017, many merchants who have websites, including those non-ecommerce sites are expected to take advantage of this trend.