Competition among payment processors has led to several impressive advancements in the ways systems can be applied in the marketplace. This is benefiting merchants, especially retailers, as well as consumers and financial institutions across the nation, as efficiency and security both continue to strengthen in the payment landscape.
Mobile Commerce Press reports that the mobile payment industry has an unprecedented amount of competition, despite its relative novelty in the marketplace. The source believes that the partnerships that continue to hit the news, such as major retailers like Best Buy, Target, Starbucks and McDonald's choosing to use one processor exclusively, are leading the industry down the right path. Innovations have been commonplace in the industry, the source notes, as one processor began using quick response (QR) codes for consumer transactions. This method has been questionable because of the security risks associated with QR scans hosting banking information, but continues to be refined to strengthen the integrity of associated systems. Though merchants will need to adopt such systems to remain competitive in the marketplace, they should always keep security the highest priority. One ill-advised product could cost a company the loyalty of their customers, especially if the fraudulent activity involves identity theft.