10 payment trends for 2014
by. Cyndie Martini
In the rapidly evolving payments world, technology is driving the next generation of innovation. 2014 will be a landmark year for the industry as mobile technology, EMV and the trend toward a cashless society picks up steam. Here are the top 10 payment trends to keep your eye on in the coming year.
1) Mobile Banking Increases in Popularity
In the U.S., 140 million people own smartphones as of the end of 2013. By the end of 2014, that number is expected to reach nearly 160 million. As smartphones and tablets grow in popularity, more and more people will turn to their mobile devices to manage their finances. In 2014, members will expect their credit unions to provide remote deposit capture, account access and card controls directly from their phones.
2) Mobile Wallets, Bluetooth and NFC Jockey for Leadership
The unanswered question plaguing mobile payments is: How will we pay with our phones? QR codes have failed to gain traction and other mobile payments technology are fighting to become the standard. Near field communication, commonly known as NFC, and Bluetooth are both in the running to become the technology of choice to allow phones to talk to POS devices. Meanwhile, expect a flood of competing mobile wallet choices from retailers, issuers and networks. 2014 will be the year the glut of options starts to be weeded out. Mobile payments won’t be a major player until there is some consensus on the method of payment.
3) Fraud Hits Hard
As we learned from the December Target breach that let criminals steal the card information of 40 million customers, the U.S. is a hotspot for all kinds of fraud. High EMV penetration rates around the world will continue to drive fraudulent activity to the United States, where magnetic stripe cards are easy targets for criminals. Counterfeit fraud is already up 300 percent in the U.S., according to Visa. Financial institutions that begin to switch their card portfolios to the EMV standard will escape the onslaught.
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