The payments industry in 2016 is set to be shaped by significant trends including the continuation of EMV implementation, the rise of mobile wallets, and the growth of NFC technology. With EMV technology becoming essential for preventing credit card fraud, many merchants are still not compliant, while mobile payment transactions are projected to surge by 210%. Additionally, blockchain technology is anticipated to emerge as a transformative force in payments, promising faster and more cost-effective transaction processing.

1. Payment
Industry
Trends
for
2016

2. 2015
was
a
historical
year
within
the
payments
industry
that
held
numerous
events,
which
transformed
the
future
of
payments.
Between
the
EMV
liability
shiD,
data
breach
protecEon,
mobile
payments,
and
the
growth
of
mobile
wallets,
there
were
many
significant
changes
that
took
place.

3. The
payments
industry
is
evolving
rapidly
and
will
certainly
conEnue
to
do
so
throughout
2016
as
well.
As
2016
transpires,
here
are
some
of
the
top
trends
predicted
to
make
an
impact
this
year:

4. ConEnuaEon
of
EMV
ImplementaEon
October
1st
marked
the
start
of
the
EMV
liability
shiD
in
the
United
States
and
altered
the
regulaEons
in
regards
to
card-­‐present
credit
card
fraud.
With
EMV
now
in
full
swing,
this
form
of
technology
will
be
a
great
soluEon
to
shield
both
the
merchant
and
consumer
against
possible
counterfeit
fraudulent
transacEons.

5. EMV
integraEon
will
take
Eme,
and
most
merchants
sEll
have
yet
to
upgrade
their
terminals
to
EMV-­‐capable
products
despite
the
mandated
liability
shiD.
A
study
done
by
The
Strawhecker
Group
found
that
only
27
percent
of
merchants
within
the
U.S.
were
EMV-­‐ready
as
of
October
1st.

6. The
main
barriers
that
prevented
merchants
from
becoming
EMV
compliant
in
Eme
for
the
liability
shiD
were
due
to
price
and
lack
of
Eme
to
research
EMV
and
the
compaEble
soluEons.
Likewise,
although
merchants
are
now
fully
responsible
for
any
incidents
of
counterfeit
fraud,
many
are
sEll
not
concerned
about
upgrading
their
terminals
right
away.

7. Several
merchants
may
not
upgrade
their
terminals
unEl
it
comes
closer
to
the
Eme
when
they
need
to
renew
or
purchase
new
terminals.
At
this
Eme,
merchants
may
feel
it
more
worthwhile
to
go
ahead
and
invest
in
an
EMV
terminal
so
their
business
stays
up-­‐to-­‐date
with
modern
security
and
technology.
2016
will
be
a
prime
year
where
many
merchants
will
make
the
switch
to
EMV
technology
as
it
becomes
more
widespread
and
prevalent.

8. Increase
of
Mobile
Wallets
With
the
rise
of
mobile
payment
acceptance,
consumers
are
now
beginning
to
uElize
their
smartphones
to
make
purchases.
Mobile
wallets
are
one
alternaEve
payment
opEon
that
has
become
increasingly
popular
amongst
consumers.

9. A
study
done
by
eMarketer
found
that
mobile
payment
transacEons
are
forecasted
to
grow
210%
during
2016.

10. In
2014,
Apple
introduced
Apple
Pay
as
the
first
mainstream
mobile
wallet
that
provided
a
safe
and
fast
alternaEve
for
payments.
By
the
end
of
2015,
all
of
the
major
smartphone
manufacturers
had
developed
a
mobile
wallet
–
including
Android
Pay
and
Samsung
Pay
in
addiEon
to
Apple
Pay.

11. In
turn,
with
technology
advancing
to
benefit
the
convenience
of
the
consumer,
most
customers
are
now
making
their
purchases
digitally.
As
a
result,
checks,
cash,
and
even
credit
card
usage
could
slowly
decline
over
the
years
and
smartphones
could
become
the
prime
way
consumers
pay.

12. Growth
of
NFC
As
mobile
wallets
have
expanded
recently,
so
has
the
need
for
Near-­‐Field
CommunicaEon
(NFC).
NFC
is
a
method
of
contactless
communicaEon
and
data
exchange
between
electronic
devices,
like
smartphones,
to
other
devices
like
credit
card
terminals.

13. NFC
is
not
only
a
valuable
soluEon
for
consumers,
but
for
businesses
as
well,
and
has
already
begun
emerging
at
in-­‐store
counters,
vending
machines,
and
EckeEng
booths.
When
making
a
payment,
consumers
will
hold
their
smartphone
over
an
in-­‐person
contactless
terminal
to
make
a
payment
and
NFC
will
communicate
the
data
exchange
from
the
smartphone
to
the
terminal.

14. NFC’s
vast
list
of
where
and
when
it
can
be
used
is
highly
appealing
and
is
addiEonally
being
coupled
with
EMV
terminals,
making
it
even
more
accessible.
NFC
is
unquesEonably
evolving
the
way
consumers
acEvate
and
pay
for
transacEons
and
2016
will
be
a
big
year
for
NFC
popularity.

15. Emergence
of
Blockchain
Technology
Blockchain
technology
is
predicted
to
break
out
in
the
payment
industry
during
2016.
Blockchain
is
a
type
of
database
on
which
bitcoin
is
based
off,
where
every
bitcoin
transacEon
is
documented.

16. It
is
comprised
of
a
vast
series
of
data
blocks,
where
one
or
mulEple
transacEons
are
combined,
encrypted,
and
stored
in
a
secure
way.
With
blockchain,
transacEons
are
processed
quicker
and
are
cost-­‐effecEve.

17. It
is
safe
to
say
that
2016
is
foreseen
to
be
an
evenaul
year,
as
new
trends
emerge
and
recent
trends
conEnue
to
grow.
EMV
will
conEnue
to
be
implemented
within
businesses
and
many
merchants
will
begin
to
upgrade
their
soluEons
to
become
EMV
capable.
Mobile
wallets
will
addiEonally
expand
and
become
more
prominent
within
digital
payments
and
the
need
for
NFC
technology
will
also
become
more
prevalent.
Blockchain
technology,
a
newer
trend,
is
expected
to
make
an
impact
during
the
New
Year
as
well.

18. Here’s
to
2016
and
the
future
of
payments!
Contact
First
American
Payment
Systems
to
integrate
payment
processing
today.