For the first time, consumers now have the option to pay merchants, not just their friends, using PayPal's digital payment app Venmo. Launched on January 27, the feature is currently limited to use within two third-party apps, food delivery service Munchery and events ticket vendor Gametime. But, with services expected to expand soon, these early adopters can offer us a glimpse into how Venmo could change the landscape for in-app payments.
From a consumer standpoint, here's how the service works: iPhone or Android users who have Venmo installed on their phones will see a Venmo button among the checkout options in compatible apps. Then, with just a tap, they will be able to use whatever payment information they have stored in the app to fund their purchase. For PayPal, this marks a … more
At this month's Mobile World Congress in Barcelona, Spain, some of the best minds in technology shared their ideas for what the next era of mobility will look like. Given its recent bout of attention in the mobile world, it comes as no surprise that payments and mobile wallets were among the most discussed verticals at the conference. Far more surprising, however, was some of the payment technology companies like MasterCard and Visa unveiled. Let's take a closer look at a few of the new payment technologies that made headlines at this year's MWC:
Visa's In-Car Payments When Visa took the stage at MWC, they brought with them not a new type of payment card or smartphone technology, but a car. In partnership with Honda, Visa developed a concept app that would allow drivers of … more
Visa Personalization Options
Effective immediately, Visa will offer an additional option for clients to personalize card designs by allowing certain elements normally printed on the card front (such as cardholder name, account number and expiration date) to be printed on the reverse side. This design option enables clients to showcase their brand on the front of the card.
MasterCard Personalization Options
Effective immediately, MasterCard will eliminate the requirement for issuers to print the first four digits of the BIN/PAN below the full PAN. As a result, … more
Every holiday season, as consumers scramble to purchase all the presents on their lists, retailers enjoy the boost in sales as a little gift of their own. However, they are soon snapped back to reality when revenue falls back to normal in January and customer returns start to eat into the stellar profits they recorded before the holidays.
In fact, most U.S. e-retailers can expect return rates of between 20 and 40 percent of their total online sales, according to Rakuten Super Logistics' recently published "Holiday Returns Handbook."
"Most U.S. e-retailers can expect return rates of between 20 and 40 percent."
For businesses without an optimized return process, these returns can cut into profits beyond just the cost of issuing reimbursements — they may lose even more on … more
If 2015 was the year of mobile payment innovation, 2016 could be poised to be the year of online payments — at least for Samsung.
The smartphone company is planning to expand its new mobile payment option, Samsung Pay, to give consumers the option to pay online in the United States, according to reporting by Reuters.
Since it debuted on the company's Galaxy phones this fall, Samsung Pay has boasted to be the most widely accepted form of mobile payment. Despite its relatively recent entry into the market, Samsung Pay has been able to achieve this status by using technology that communicates with the magnetic swipe terminals most retailers already have in their stores, unlike Apple Pay, which requires merchants to install special near field communication (NFC) terminals. … more
While the introduction of EMV payments has given brick-and-mortar stores an added level of protection against counterfeit transactions, it has put online retailers at an even greater risk of being targeted for fraud.
According to a report by Aite and RSA, fraudsters will not simply give up when their efforts are thwarted at physical shops. Instead, their energy will be funneled into the path of least resistance. With card-not-present (CNP) transactions becoming the new lowest-hanging fruit for fraudsters, U.S. online merchants should expect to see a massive spike in fraud, according to the report, which cites similar trends following the shift to EMV in Canada and the U.K.
"The data from Canada's EMV migration paints this picture clearly; counterfeit and lost/stolen … more
Even two months after the EMV liability shift, many consumers still struggle to use the new card technology at the point of sale. In fact, people seem to have fewer problems using mobile payment solutions like Apple Pay, despite their relatively low adoption rates. This suggests that merchants and, more specifically, cashiers, still have a long way to go in educating consumers about how best to use their new chip cards.
This responsibility was destined to fall on cashiers and floor-level personnel at retailers sooner or later, with 2016 promising to be the year that sees the end of magnetic stripe cards at nearly all U.S. merchants in favor EMV or Near Field Communication (NFC)-based payment methods. However, retailers don't necessarily have the luxury to wait much … more
Since the October 1 liability shift, merchants across the country have rushed to adopt EMV-enabled payments systems. With this high rate of migration, the payments industry is observing an exorbitant rate of fallback transactions coming from newly deployed EMV terminals.
In these cases, chip cards presented at a chip terminal cannot be read due to technical issues with the chip. As a result, merchants are pressed to follow fallback acceptance procedures to ensure compliance with card acceptance rules. However, because these fallback procedures require merchants to revert to less secure transaction methods, such as magnetic stripe or key-entry, they must be especially careful when executing fallback purchases.
To navigate the proper fallback procedures, keep these … more
Although EMV technology has been around for decades, its relatively recent introduction to the U.S. (and the ensuing liability shift) has brought the new credit card technology to the forefront of American merchants' minds. While EMV transactions and compliance have come to dominate the merchant payment conversation as of late, another, more innovative payment technology has positioned itself to eclipse EMV as the new future of consumer payment technology: NFC.
To understand how this shift could take place, let's first take a moment to lay out the difference between these two payment methods.
EMV, which stands for "Europay, MasterCard, and Visa," is the technology behind transactions between a chip-enabled credit card and an EMV-enabled payment terminal or ATM. Chip cards have become … more
This year, more people will be paid with paycards than paper checks, according to new research from Aite Group. By 2019, the study predicts, the number of workers compensated via paycard will jump from 7 million up to 12 million while those who receive paper checks will plummet from 6 million to 2 million.
The shift comes as more and more employers are recognizing the advantages of distributing paycards rather than paper checks, for both themselves and their employees. For businesses, paycards represent a massive savings opportunity, costing about $0.35 for a payroll deposit, compared with $2.00 for a paper check, according to a study released by the New York Attorney General's (NYAG) office last year. Researchers also found that employers that switched to payroll cards … more