Over the past decade, payments have drastically changed. With the development of modern technology and a demanding consumer base, the payments industry has seen massive growth.
Currently, EMV (Europay, MasterCard, and Visa) is at the centre of global payment card processing, with billions of transactions flowing through the international payment schemes every day. EMV has proven itself over the years as a go-to option when it comes to payments, dominating the industry globally. The recent extension of EMV into contactless payments is providing massive growth. The belief that EMV may become irrelevant seems quite far-fetched, however, there are reasons to believe the sovereignty of this platform is under great threat.
Modern technology and an increasingly demanding consumer base have driven massive growth in the payments industry. Traderoot understands this, which is why we’re continuously working towards developing and building better payment solutions.
What Poses a Threat to EMV?
One of the biggest influencers and drivers of evolution in the payments sector has been technology and the internet. E-commerce is flourishing, and it’s becoming strikingly clear that cards are no longer the best payment method in a world full of online payments. There’s simply no need for a consumer to put their trust in a merchant and give them their valuable card details when they can simply authorise the transaction directly through their bank. It’s far safer and there’s a substantially reduced chance that payment details will be intercepted by or shared with bad actors.
As a result, EMV is slowly but surely losing traction in the E-commerce world, as chip-based processing cannot be used, except in the case of tokenised payments using payment methods like ApplePay and Google Pay. But how long will this last?
The Impact of Integrated Finance
More and more apps and platforms are integrating automated payment solutions into their operating model, building automated payment solutions that become part of the user experience. A great example of this is ride-sharing apps. Similarly, smartphone-based digital wallets that don’t require EMV are continuing to grow at a rapid rate, with PayPal being the leader in that regard. Consumers are constantly looking for easier, safer and more accessible ways to make payments, whether that be online or in-store, and digital wallets and integrated finance are providing just that.
How Cryptocurrencies can Challenge Traditional Payment Systems
Cryptocurrencies are also playing an important role in payments. Cryptocurrencies like Bitcoin and Ethereum were designed as a way to make payments without having to rely on traditional modes. In recent years cryptocurrencies have gained widespread popularity which has ultimately led to large scale adoption, which will only increase in the near future. We predict that cryptocurrencies may play a very significant role in the future of payment systems
Whilst this doesn’t mean EMV will become redundant anytime soon, it does mean that payments as we know them are changing rapidly. As a fintech firm, Traderoot understands this and we’re continuously working towards building better payment solutions. If you’re looking to explore or build payment solutions outside of the traditional EMV ecosystem, contact the team at Traderoot today.