Emerging Payment Trends Shaping the Future of Transactions

The drive for sustainable practices and solutions is changing every aspect of business – including point of sale and payment processing. The latest payment trends are all geared toward reducing retail’s impact on the environment, from paperless transactions to virtual cards, EMV chips and contactless payments. As a retailer either seeking payment solutions for a new store, or looking to upgrade your current payment systems, it would be a good idea to keep these trends in mind and use them to futureproof your business. 

Most of the latest trends in the payment processing industry are focused on sustainable solutions. These are payment methods and systems that are designed to minimize business’s effect on the environment. This refers to the materials that are used to produce these solutions, as well as their energy consumption and environmental impact during operation. The carbon emissions from production, payment processing and consumer use should be as low as possible. Since so many businesses are invested in reducing their environmental impact, these payment solutions are becoming increasingly important. Why do you need them, and are they effective? Here is what you need to know.

There was a time when paperwork was central to sales, with printed or handwritten invoices and receipts being issued with every transaction. With credit card payments, even more paper was added to each transaction: every customer would walk away with a printed receipt from the point of sale system and another from the credit card machine. These may seem like small, insignificant slips of paper, but just think how many trees have had to be felled and how many millions of litres of water have been used to produce the many millions of paper dockets that have been printed in the past few decades. 

A 2020 study conducted by GreenAmerica showed that the production of paper for sales receipts amounted to a total output of 252,000 tonnes in the United States alone. This output cost 3,270,000 trees and over 33,000,000,000 litres of water. These staggering numbers were actually an improvement on the previous year, and subsequent years have thankfully seen further decreases, but the figures are still quite high. 

Considering the current state of retail technology, there is no reason why these precious resources should be used so wastefully. Paperless transactions are now rapidly becoming the norm for both online and in-store sales. Digital payment methods have led to reduced requirements for printed transaction records. Digital receipts can easily be sent to customers via email or text message. While many retailers and shoppers continue to use paper, increasing numbers of them are also making the shift to paperless transactions. There are several reasons for this: not only are paperless transactions inherently more sustainable, but they also help to make businesses more efficient and play a major role in the ongoing transition to cashless business.

You may not realize this, but paperless sales help businesses to be more efficient and productive. When you make a commitment to going paperless, you are not merely doing a good deed for the environment, you are actually investing in the future success of your business. Consider these five core benefits of going paperless:

For several years, there has been a push across the global economy towards the reduced use of cash. Credit cards and electronic payments have facilitated this movement, and paperless transactions are an integral part of it. It is now entirely possible for transactions to be completed without any paper changing hands at all – no cash, no slips, no invoices or receipts. Paperless transactions are thus part of a much broader shift in finance, technology and business.

Aside from paperless sales, there are several other factors that play a role in the current digital retail revolution. Cash is taking a backseat, and cards serve as the dominant form of payment – and card technology itself is changing rapidly. While cards with magstripes were the standard for years, they have now given way to contactless cards, which in turn, are increasingly obsolescent as a result of the rise of eco cards and virtual payment cards, sustainable payment solutions that are very much in keeping with current environmental values.

There is a strong possibility that credit and debit cards as we know them will not exist at some point in the future, being replaced by digital equivalents with no environmental impact. Virtual cards have already started to be widely adopted, although physical cards are still dominant. In the meantime, before digital cards become more generally accepted, the emphasis is on producing cards that have a minimal impact on the earth’s ecology. These eco cards are made with recycled and biodegradable materials. Even the devices used to process card payments are more sustainable, being made with more eco-friendly materials and with lower energy consumption as a primary goal.

Bank cards have traditionally been made from plastics such as PVC, which have a considerable, negative impact on the environment. Thales, the world’s leading card manufacturer, claims that the amount of plastic used to produce bank cards each year is equivalent to the weight of 95 Boeing 747s. A single card generates about 150g of carbon dioxide – the equivalent of about five plastic shopping bags. While using more sustainable materials can help to make credit and debit cards more eco-friendly, the ultimate solution would be the mass adoption of virtual payment cards. These cards are stored in a digital wallet and kept secure through multilevel authentication and biometrics. It is even possible to create single-use cards for each transaction, heavily reducing the risk of bank card fraud. These digital payment tools make transactions both more secure and more sustainable.

Among the many measures being taken by businesses to make payment systems more sustainable, batch transfers are perhaps the most effective and most important. Batch transfers combine multiple transactions into a single processing cycle. This method makes payment processing more efficient, cost-effective and sustainable. Batch credit transfers are more energy-efficient than batch debit transfers, because they use less electricity. Both of these variants are more energy-efficient than instant payments, because of their ability to process a large number of payments in a single transaction, instead of processing each one separately, which takes up more time and uses more energy.

The best way to get the benefits of batch payment processing is for businesses to sign up for a single-credit-message (SCM) system, which centralizes payments through a single platform. Examples of these systems include Payments Canada (or FedNow for US-based businesses). Various service layers can be built on these systems, including request-to-pay (R2P) and variable recurring payments (VRP).

With the emphasis now increasingly on digital, contactless payments, various technologies are coming to the fore, designed to enable these transaction methods. These payment options are currently regarded as supplements to card and cash payments, but they are likely to become the norm in the near future. Among the technologies now being integrated into point-of-sale and payment processing systems is SoftPOS. 

SoftPOS enables the acceptance of contactless payments, both with plastic cards and virtual ones. It works seamlessly with Apple Pay, Google Pay and other digital payment methods. SoftPOS enables retailers to accept payments with their Android smartphones, iPhones or similar mobile devices. It does with the need for card readers or payment-specific software. It is the ideal solution for small retailers and businesses on the go. If necessary, it can also be integrated with point of sale systems and other payment processing systems.

These sustainable payment processing technologies are part of a broader focus on environmental, social, and governance (ESG) issues in business. In a commercial environment where ESG is a vital factor, all businesses, including retailers, are well advised to improve the sustainability of their practices and processes. 

Payment processing companies are under significant pressure to keep up with this trend, which is why sustainable practices such as virtual cards and paperless transactions are developing so rapidly. Most companies listed on global securities exchanges are now required to share information about their global impact. Accordingly, the products and solutions they offer must be demonstrably “green” in design and application. This is applicable, not only to payment processors, but to the businesses that use their solutions as well. Even small retailers that are not listed on any exchanges are likely to face increasing pressure from their customers and competitors to adopt more sustainable payment solutions. Thankfully, these new solutions are easy to adopt, both for retailers and their customers, and can be seamlessly integrated into most new and existing point of sale systems.

Access2Pay is a product of InfoCorp Computer Solutions, a world leader in integrated revenue management and system integration. We have built our reputation on a foundation of providing solid products as well as qualified professionals who work alongside our business partners to solve each client’s unique revenue management needs. 

Our solutions have grown over the past few years into leading scalable and modular systems. Our POS solution is designed to work with all components necessary for the running of your business, and it can easily integrate paperless transactions, eco cards and other payment trends currently in development or likely to rise in the future. Contact us for more information on these integrations and the best options for your business.