Throwback Thursday: Payments Then and Now

If you’re looking for proof that the payments industry has gone through a lot of changes in the past few years, we’ve got it. Our team went back through the Insights archive to look at the predictions we made and the hot topics making headlines back in 2012. 

Spoiler alert: Mobile payments looked a lot different and we were just beginning to grasp the idea of omnichannel. Here’s what else was happening (along with how things actually played out):

Throwback to: August 2012
Blog post: The Current State of Loyalty and Rewards
What we said: “It’s obvious that today’s consumer expects a deal, whether that be a promotional offer from a daily deal site like Groupon or LivingSocial, a physical coupon, a loyalty punch card or a mobile offer, Americans don’t want to pay full price. Customers want special offers and their expectations are that these rewards, coupons or deals be more and more relevant or personalized.” 
What actually happened: In 2015, mobile offers are giving paper punch cards and coupons a run for their money. With Apple Pay and Android Pay both getting into the loyalty and offers game, it might not be long before paper becomes obsolete in the retail world. As for personalized offers, businesses have more options than ever before to create one-of-a-kind shopping experiences that give customers what they want, from the website to the store and every step in between. 

Throwback to: August 2012
Blog post: Mobile Payments: Big Names Converging 
What we said: “Apple is rumored to announce its play in mobile payments with the forthcoming introduction of iPhone 5, a follow-up to its Passbook announcement in June and the iWallet patent award. With over 400 million active accounts through iTunes, there’s no question that Apple will have a huge impact on the ecosystem if, or when, they officially enter. 
What actually happened: Apple officially entered the mobile payments ecosystem in September 2014 with about the impact we’d expect. We’ve become fond of sharing one particularly dynamic statistic to illustrate Apple’s impact on payments: It only took three days of Apple Pay availability for the phone maker to reach one million registered cards. Apple isn’t alone in the market, though, Android Pay and Samsung Pay are also competing for their share of consumer attention at the checkout. 

Throwback to: June 2012
Blog post: Four Tech Issues Holding Merchants Back
What we said: “E-commerce opened the door for lower prices and a streamlined experience. Consumers can simply turn to Amazon for seemingly every possible need. Merchants are now forced to redefine their business to persuade consumers to leave the virtual world and come back to brick-and-mortar.” 
What actually happened: Thankfully, today’s ideal retail strategy is less about having shoppers leave the virtual world for brick-and-mortar, and instead about reaching them everywhere they are—from tablets and phones to desktops and even social media. Omnichannel has become a strategy that’s not just for big-box retailers. In 2015, there are plenty of ways to craft a more connected and competitive shopping experience, no matter the size of your store. 

Throwback to: July 2012
Blog post: What is EMV?
What we said: “We expect to see both Chip and PIN and Chip and Signature in the US market by 2013. As credit card companies such as Visa, MasterCard, Discover and American Express continue to push for EMV adoption, there is still a sense of reluctance among retailers and payment processing companies.” 
What actually happened: EMV in the US took longer than expected, but we’re now just weeks away from the much-anticipated liability shift. We were right to comment on the hesitation surrounding EMV. Our survey of small business owners shows that many are reluctant: 37 percent reported that they don’t accept EMV and have no plans to accept it post-October 1. That said, the cost of covering fraud could be enough to convince 63 percent of respondents. 

It’s clear the retail and payments industries have seen their fair share of changes in the past few years. What do you think will change most over the next three years? Leave us a comment or send us a tweet @Cayan and let us know! 

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