ETA Expert Insights: The Evolution of Mobile Payments

By Eddie Johnson, VP of Proposition, Aevi and Chris Barker, Product Proposition Manager, Aevi
ETA Mobile Payments Committee

From the introduction of NFC and contactless technologies to the adoption of softPOS and the rise of market challengers like bitcoin and account-2-account (A2A) payments, mobile payments have reduced friction in the checkout experience for both consumers and merchants.

The following is a summary of a recent roundtable and presentation held by the ETA Mobile Payments Committee with Eddie Johnson and Chris Barker of Aevi the evolution of mobile payments from the perspective of a card acceptance provider.

As payments providers look to the future, you must think about flexibility regarding the mobility of data flow and the mobility of acceptance. Implementing solutions that address consumer and merchant needs will be of utmost importance.

Consumers expect a seamless, holistic payment experience where they can use the payment method they choose. While merchants want an experience that will drive customer engagement and increase their business’s performance. With those two forces at play, you need to offer solutions that are:

• Customer-Centric
• Embedded
• Digital
• Value-Based

Consumers expect more from their merchants. In the past, most people used cash as a primary form of payment, but now people can use their phones. If they cannot pay how they would like, they will likely find another merchant.

On the merchant side, things are becoming digitized and include identity-based solutions. All of this is part of the lifestyle economy. It’s not just about being able to accept mobile payments. Consumer and merchant needs are tied together in the new digital payments space, and mobile payments can open the door.

It’s essential to educate merchants and break the process down of the payments experience they’re integrating so they go, “hold on a second, this helps us.”

Instead of thinking about how you can help a merchant accept mobile payments, look at this as an opportunity to lay the foundational steps in in-person payments. Explain the orchestration between payments, e-commerce, in-person, and data when introducing solutions and ask them if their current solution:

• Can you see informative data and trends?
• Does the backend of the solution work how it needs to work?
• On the front end, is this solution going to be appropriate – not just now but in the future?

By having this discussion, you will not be helping them address their need to accept mobile payments but help them build the foundation so they can be ready for what’s next in payments.