The New Year is the perfect time to look to industry experts for the trends and predictions that will shape the payments landscape for 2016, and Ingenico Group has done just that, formulating the 7 Payment Predictions to Watch Out for in 2016.
#6 was Payment Security, with Bluefin Chief Innovation Officer Ruston Miles stating:
“Major card data breaches in late 2014 and 2015 caused merchants to rethink their security approaches. I think that 2016 will be the year of securing the point of sale. Technologies like point-to-point encryption (P2PE) and end-to-end encryption will really come to the forefront of protecting point of sale systems from malware and other attacks like it.”
At last week’s annual NRF Big Show in New York, Ingenico announced that US adoption of its P2PE solution, On-Guard, grew by 8 times in 2015 as US merchants upgraded their systems for EMV, and concurrently implemented additional security measures to help fortify their payment acceptance infrastructures.
“As the demand for P2PE solutions accelerated in 2015, several third-party payment solution providers selected Ingenico Group’s On-Guard technology and obtained PCI P2PE validation on their end-to-end payment solutions, including Bluefin. On-Guard-based solutions now represent 75 percent of the PCI-validated P2PE solutions in the US.”
One retailer using the Bluefin/Ingenico Group solution is HoneyBaked Ham. “Protecting your customers and your corporate brand continue to be the biggest challenges faced by IT executives. To meet that challenge, we began working with Bluefin and Ingenico Group to adopt a PCI-validated P2PE payment solution across all our stores in a simplified and cost-effective way,” said Bill Bolton, VP, Information Technology, HoneyBaked Ham.
EMV may curb card present fraud but technologies like P2PE will see more adoption in 2016, as they protect point of sale systems against malware attacks and data breaches. P2PE encrypts card data at the point of entry, rendering the card data useless to criminals attempting to hack into a POS system – helping merchants reduce their PCI DSS scope, decrease their vulnerability to cybercriminal attacks, and protect their brand reputation.
“P2PE is a simple concept, but many merchants did not consider implementing it until this year – when the EMV deadline created the right inflection point for retailers to bear the implementation,” said Greg Boardman, CTO, North America, Ingenico Group. “Because EMV enablement requires changes to the terminal and/or POS infrastructure, adding P2PE to the project became an obvious resolution. We are continuing to see our P2PE adoption rates grow month-over-month, and anticipate that growth will continue into 2016 and beyond as the overall US retail market penetration of this technology charges ahead.”
Let’s face it, consumer behavior is a driving force in payment innovation, and consumers will stay loyal to a merchant only as long as it is a secure and convenient experience. As a result, Ingenico Group’s predictions show merchants expanding their payment options – mobile, NFC, omnichannel, semi-integrated, and unattended (kiosk) – as well as implementing value-added services, like loyalty programs, into their business strategy to keep (and grow) their customer base.