Emerging payments: IoT, Social payments and the chargeback problem

Each month, we’ll help you navigate the emerging trends and forecasts for card-not-present (CNP) merchants with (what we think) are the best pieces of advice from Verifi and across the web. We promise to keep this newsletter short and sweet so let’s get started!
iStock_000038702604_SmallQ> What will the next big payments buzz be after mobile and how do I ensure that I have a solid payment processing foundation that can accommodate security and compliance requirements while remaining agile enough for emerging technologies and threats?
This month we look at the next new “shiny” objects that will impact the payments ecosystem. As the landscape continues to evolve, we’ll see new opportunities that allow merchants to sell on different platforms and gadgets. This newsletter looks at emerging payments opportunities as well as the related obstacles and threats that accompanying them.


Web-connected gadgets like t.v.s and watches are the next big buzz in emerging payments as the Internet of Things (IoT) opens the door to new payment methods for consumers. It also opens up new opportunities for companies to gather valuable information on consumers – opportunities that consumers will not necessarily be opposed to as it increases convenience.
Gartner expects the Internet of Things installed base will grow by 2020 to include 26 billion units, generating $1.9 trillion. This poses big changes – and potential sales growth – to retailers who have an agile payment processing operation that can process payments today with flexibility to adapt to the requirements of tomorrow. The mainstream success of payments through IoT will require partnerships across the value chain, a reasonable method of integration, and most importantly – security. By securing transaction data with tokenization, encryption, POS device management and the ability to segment transaction data to route to a card processor and/or the merchant, merchants and developers of this technology can engage consumers who feel comfortable and safe making payments through everyday things.  Merchants should evaluate their payment processing platform now to ensure they have all they need today to navigate they payments landscape of tomorrow.


iStock_000027264768_SmallMerchants must evolve as the marketplace and technology evolves to remain successful in customer acquisition and retention. Omni-channel is fluid, and as customers continue to prefer online and mobile, successful merchants will not only adapt but excel at meeting their dynamic and changing needs. Pinterest and Instagram recently announced the release of tools to let retailers sell directly from each platform. This move highlights the importance of consumer convenience and employing a payment processing strategy that enables shoppers to buy where and when they choose.
Engaging with consumers across social media, onsite, online and mobile channels in a personalized meaningful way requires consistency, updated systems and in-depth analytics. The objective remains the same: influence actions through omni-channel optimization and testing to drive continued growth. This also requires merchants to protect consumers across all channels. To streamline protection, merchants should consolidate security, fraud and risk prevention into a streamlined operation that promotes a positive customer experience– but one that can be constantly fine-tuned to meet emerging needs.


Chargeback management is not a one-size-fits all operation. While there are best practices that merchants can implement to minimize and prevent chargebacks, a customized approach is most effective. And while chargeback prevention is key to protecting revenue from true and friendly fraud, chargeback representment and profit recovery is equally important.
Whether you opt to handle chargebacks in house, or retain the services of a third-party vendor, a multi-layered security and fraud prevention strategy can make or break your business. Here are some other resources to make sure you’re poised to fight fraud along every step of the transaction lifecycle:


As emerging technologies and new sales opportunities come to light, merchants need to prepare and adapt internal processes to meet the changing payments landscape head-on. A multi-layered security and fraud prevention strategy is the best bet. A flexible, customizable payment gateway can serve as an ideal foundation upon which this type of layered strategy can be built. Sales opportunities and fraud are both dynamic – is your payment processing gateway?
CNP merchants need a flexible gateway partner to streamline payments and adapt to the changing landscape. The shift to EMV and the need for optimized loyalty programs call for multi-layered fraud prevention tools that can be tested, toggled and supported by reporting that provides deep insights into different market segments. Verifi’s Global Payment Gateway, Cardholder Dispute Resolution Network™ (CDRN), Intelligence Suite® and Chargeback Representment (CBR) solutions seamlessly combine (without IT hassles) to form a processor agnostic “Super Gateway” that protects your payments from start to finish while ensuring legitimate sales flow through.
What are your thoughts? Ping us on Twitter (@verifi) with #paymentstips and let us know what you think.