Competition in payment processing industry good for the consumer

Many enterprises have recently enjoyed the new capabilities of emerging payment processing technology, as improved efficiency always benefits a business' bottom line. Many have used ACH cards and associated transactions, be it for payroll or monthly payments to distributors. Mobile payments, too, have gained serious notoriety throughout the last year. RFP Connect reports that major mergers, acquisitions and new partnerships have been among the biggest pieces of news in the industry. This includes many major manufacturers, merchants and information technology (IT) firms, which have decided on only one payment processor for all transactions. The exclusivity apparent in all of these deals, from Starbucks to Facebook and Google, has helped to improve relatively small processing firms' operations and overall success. Additionally, these announcements have created a game of leapfrog and, as the old capitalistic adage goes, competition begets better quality. Better quality is still needed in the online banking sector, as malicious forces continue to beat even the most innovative security software and systems. However, fraudulent activity, according to some data, has declined in the banking sector this year compared to 2011, showing some signs that these partnerships have been for the best.