Even as EMV technology picks up steam, a new payment option is on the horizon.
More and more consumers are gravitating toward mobile payments, and that trend doesn't seem to be slowing down in 2017. Experts from the World Economic Forum predict that mobile payments will grow in popularity as consumers comfortable with the idea of using them. But users have EMV technology to thank for opening up this new form of payment.
The reason EMV chip card processors and mobile transactions are linked is because both mediums use near field communication technology, according to MediaPost. This technology allows mobile phones to communicate with a card processing terminal when they're in close proximity to each other, the source noted. As EMV card readers become more widespread, mobile payments will have a greater opportunity to flourish as well because of NFC technology.
This means that while EMV card processors will be an important retail for a long time, business owners might also need to be thinking about whether they are ready for mobile transactions. If not, retailers might be viewed by consumers as behind the times.
"They need to be where, and to the extent that customers want to pay via [their mobile phone] – and some surely will – they need to be present," David Bell, a marketing professor at the Wharton School of Business, told Knowledge at Wharton.
And retailers will definitely want to get in on the action. Mobile payments are expected to be responsible for $1 trillion in global sales in 2017, according to a report from the International Data Corp. That marks a whopping 124 percent increase from the previous year. Retailers need to stay alert during the ongoing EMV transition as well as keeping an eye on the future of payment processing.