Tag Archives: payments

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MasterCard Introduces Next-Generation Contactless Payments

On 26th January 2021, MasterCard made the announcement that it is going to apply for the revolutionary range of quantum-resistant technologies for the development of next-gen contactless payments. The Ecos or Enhanced Contactless specifications will be the first-ever such technology in the industry. It helps in ensuring that as the dynamic digital landscape continues to evolve, and newer technologies including quantum computing are getting introduced, the technology of contactless payments will be future-proofed. At the same time, it also helps in ensuring that consumers would continue enjoying the same higher levels of security as well as convenience they have in the modern era, for several years to come.

The overall demand for safer, more convenient, and faster ways of payment has ignited the transition to the technology of contactless payments. At the same time, it is expected that the given trend will only grow in the coming years. As a matter of fact, during the 3rd quarter of 2020, contactless payments accounted for around 41 percent of transactions related to in-person purchases across the globe –witnessing an overall increase of 30 percent in comparison to the previous year.

MasterCard Introducing the Revolutionary Contactless Payment Technology

MasterCard has been accelerating the overall shift to the concept of contactless payment for several years. At the same time, the leading payment giant has been developing high-end specifications in the form of Ecos for supporting efforts related to industry standardization. At the same time, it can also help in ensuring that the overall ecosystem tends to benefit from increasing security levels.

Ajay Bhalla –President of Cyber & Intelligence at MasterCard, says that contactless technology serves to be the present as well as the future of in-person payments. The year 2020 had been responsible for bringing with it a significant rise of digitization while reinforcing the overall significance of digital solutions. One major instance of the given solution is contactless technology for helping in meeting the everyday needs. As the given ecosystem continues evolving, an increasing number of connected devices as well as the IoT (Internet of Things) are going to yield improved user demands. At the same time, it can also help in creating a greater need for continuous innovation for building next-gen capability while ensuring that technology would never outgrow trust.

Benefits of Ecos

With the help of Ecos or Enhanced Contactless specifications, some potential benefits to look out for are:

  • Improved Convenience: Over the passage of time, it is estimated that the respective in-store shopping experience will become contactless only. The latest specifications will help in delivering the assurance that any device is truly capable of serving as a payment device while getting rid of the overall need for the backup swiping or dipping of the card.
  • Improved Privacy: The all-new specifications will be helpful in delivering advanced protection when the existing account information will be getting shared between the digital wallet or card and the final checkout terminal. Ecos helps in building on the improved requirements for supporting a myriad of privacy regulations.
  • Improved Trust: Ecos is known to make use of the all-new quantum-resistant technology for delivering advanced algorithms as well as cryptography major strengths. At the same time, it also helps in maintaining the contactless interaction under the value of half a second.

As the all-new specifications get activated in the period of coming years, merchants as well as consumers can expect hassle-free transactions. Mobile payments, digital wallets, point-of-sale terminals, and contactless cards are going to continue working as they are doing in the modern era. Moreover, the overall compatibility with Ecos, along with the ongoing contactless specifications is going to be simple & straightforward.

Ecos is known to work behind the existing scenes while being delivered through some software upgrade. As such, no terminals or hardware specifications are required. The given investment tends to complement similar investments in the form of Click-to-pay, 3-D secure, and token technologies for delivering an improved merchant as well as consumer experience.

The Ever-increasing Demand for Contactless Payments

The overall demand for contactless payments is going strong and is increasing with each passing day. It is estimated that around 15 percent of the respective in-store purchases across the globe make use of the given technology. Realizing the immense opportunity to speed up the process of adoption, MasterCard has come up with a proper roadmap for setting out the specific requirements:

  • After the period of October 2018, acceptance terminals that are relatively newer in countries like Africa, the Middle East, Asia Pacific, Latin America, and Europe will be featuring the EMV chip while being contactless enabled.
  • After the period of April 2019, the cards that are issued new in the countries like Africa, the Middle East, Asia Pacific, and Latin America will be featuring EMV chip as well as the revolutionary contactless technology
  • By the time of April 2023, all the respective merchant terminals in countries like the Middle East, Europe, Africa, and Latin America will be featuring the EMV chip while being contactless-enabled

Markets across the countries of Africa and the Middle East have already embraced and implemented the high-end technology of contactless payments. The given momentum is expected to receive more momentum with the acceleration of the acceptance landscape in the given region.

Foundation for Improved Security and Enhanced Growth

In the modern digital world, transactions are going to get smarter. At the core of the given fact is dynamic authentication in which every transaction would be incorporating unique information. It would also make it virtually impossible to replicate. This helps in reducing the overall risk of ensuring fraudulent transactions.

As the issuers would be evolving the respective offerings with the merchants upgrading the existing terminals, the modern payment system will be becoming more secure. This is because the given form of dynamic data gets introduced into the payment transaction. As such, the roadmap by MasterCard aims at strongly encouraging the overall adoption of the most secure available technologies.

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Restaurant Trends for 2021 – How Restaurants will Succeed

COVID-19 has changed the way restaurants operate in a big way. In some states, they still aren’t fully operating, which leaves restaurants thinking outside the box longer than they ever thought necessary.

2021 looks like it will shape up much how 2020 ended, which means restaurant owners must continue being creative and figuring out ways to make the most of their business as it is right now.

Top Restaurant Trends for 2021

Focusing on Take-Out, Delivery, and Contactless Payments

No one knows when restaurants will open again (for indoor seating). This means all business owners must rely on take-out and delivery. Anything they can make contactless (including payments) is what will bring in the customers. Curbside delivery, online payments, and as little contact as possible are what will bring the business.

Creating a Brand for Themselves

Restaurants shouldn’t rely on just the food that they serve, but on the brand, they want to create. Think about what audience you serve. What are their pain points? What do you offer that helps them? That’s the brand you want to focus on and portray to your audience to bring in more business.

Providing Healthy Foods

Everyone loves to eat out (or order in), but today’s consumer is health conscious. You’ll still have those who love their favorite comfort foods, but including at least a few healthy foods on the menu will cater to a larger crowd.

Pop-Ups and Special Menus

Restaurants today are getting with the times and realizing many of their services may be short-lived. For example, if they can open for in-person dining, it may be for a short period. So instead, they think outside the box and have specials and limited opportunity pop-ups that bring a sense of urgency and excitement.

Online Reservations

Today consumers have to make reservations for just about everything, including any type of dining. The days of popping into a restaurant when you feel like are gone. Merchants need to adopt an easy reservation method, of which online reservations is the easiest. Whether you have a mobile app or just a website, enabling customers to reserve their time easily brings in more business.

Provide Quick Dining Opportunities

Anything you can do to make the diner’s experience contactless will take you far in 2021. Diners want to get in and get out. This includes when they’re taking the food to go. Self-service kiosks and contactless payments (online) let customers come in, get their food, and leave with little to no contact with others.

2021 is all about staying healthy. From serving healthy foods, ensuring the utmost safety precautions, and offering contactless opportunities for ordering, paying, and picking up food is important.

No one knows when the pandemic will end, but restaurants can stay strong by implementing the trends consumers want to see and that makes them feel safe. As we continue to navigate our new normal, it’s time to adapt to what’s in front of you and give your audience what they need to remain loyal.

Frequently Asked Questions

Merchant Services and Payments Impacted by COVID19 [2023 Update]

The COVID-19 pandemic and the resulting stay-at-home orders across the globe and country during the past few months has led to a significant reduction in both the number of merchant services transactions and dollar sales in our country. With predictions of a global decline in GDP, there are few bright spots in the economic fallout. One concrete result of the pandemic is a move to touchless transactions in efforts to reduce the spread of the virus.

Cashless Society

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COVID19 Pandemic Has Merchants Looking for Solutions

After the World Health Organization warned that banknotes may spread coronavirus, they recommended using contactless payments to mitigate the spread. Not to mention, microorganisms can transfer to credit cards at point-of-sale terminals during credit card processing, and PIN pads carry similar health risks. And because retailers had to shut down and sell online exclusively, the use of cash is disrupted due to the shutdown.

Global Scale

Depending on the spread of the virus, the public health response, and the effectiveness of the fiscal, monetary, and broader public response, the global GDP would potentially decline by 1.5% in 2020 after two to three months of economic lockdown in Europe and the United but would decline by 4.7% after a resurgence of the virus in China and continued spread in the United States and Europe.

A slowing global payment-revenue growth is expected to cost the payment industry $165 billion to  $210 billion in 2020 revenue. The net interest-margin component, which is the source of 60% of payments revenues, accounts for 20% of the decline. The transaction component, which is the source of 40% of payments revenues, is responsible for 80% of the decline. A 1.5% economic contraction would lead to an 8-12% reduction in payment volumes.

Local Scale

Due to stay-at-home orders and the close of non-essential businesses, total transactions and dollar sales fell nearly 50% and more than 25% respectively in the weeks following shutdown orders. Active merchants dropped by 25% with more than a quarter of merchants posting no transactions at all. Urban areas showed sales decreasing by 22.5% since the first week of March while medium-sized cities have decreased 26.5%, small cities 26.5%, and rural areas 31.1%.

Despite the drop in card-present sales (nearly 50% drop in March), card-not-present sales only decreased by 15.2%. Sales for on-site technical services such as plumbing, heating, and contractors remains steady perhaps due to stay-at-home restrictions. Also sales between 5 am and 11 am are increasing, accounting for the special hours for seniors and high-risk shoppers, as well as for customers looking to shop outside of traditionally busy hours.

Host Merchant Services

During these turbulent economic times, depend on a stable and reliable payment processor to partner with your business to minimize the impact of worldwide instability. Payment processing should be the least of your concerns. Delivering personalized service and clarity, Host Merchant Services takes the time to explain your payment processing. We want you to understand your monthly statement, and we will ensure that your statement matches our promises during our sales presentation. If you do have questions, you can reach a live representative any time, any day. HMS offers wonderful customer service, as well as great rates.

Host Merchant Services even explains where our profit lies in the pricing structure to be fully transparent in all directions. Pricing fairness and transparency is our strategy in helping our customers find success with their businesses.

MasterCard Launches Global B2B Service

More than a year after announcing the launch of MasterCard Track, a B2B digital platform for improving global trade among small businesses, MasterCard has unveiled new plans to modernize business-to-business transactions even further. The new MasterCard Track Business Payment Service expands the focus of the digital platform for faster payments and data collection.

What Is MasterCard Track?

In 2018, MasterCard launched Track, a business-to-business platform to simplify and speed up global trade. The platform, powered by Microsoft Azure, connected buyers and suppliers with each other, lenders, and other networks.

Business-to-business transactions largely remain outdated despite rapid advancements in the rest of the business world. Manual invoicing and paper checks remain common with administrative costs nearing $500 billion. According to MasterCard, nearly 50% of all business-to-business transactions, or nearly $58 trillion, are still done on paper.

MasterCard Track partnered with nine procure-to-pay providers and business-to-business networks to help organizations maintain, exchange, and retrieve data about themselves and their partners. Track helps facilitate communication by connecting networks in a single platform.

What Is the Track Business Payment Service?

The Track Business Payment Service represents a new branch of the MasterCard Track platform that focuses on payments rather than networking and communication. The MasterCard Track Business Payment Service is the first commercial and global open-loop service built to automate business-to-business payments. The service modernizes payment processing by helping buyers and suppliers overcome outdated systems and improve the way businesses pay and get paid.

The Track Business Payment Service works as a single connection to combine multiple modern payment solutions with a focus on faster payments and real-time data collection.

All Payment Types in One Service

The Track Business Payment Service represents a new branch of the MasterCard Track platform that focuses on payments rather than networking and communication. The MasterCard Track Business Payment Service is the first commercial and global open-loop service built to automate business-to-business payments. The service modernizes payment processing by helping buyers and suppliers overcome outdated systems and improve the way businesses pay and get paid.

The Track Business Payment Service works as a single connection to combine multiple modern payment solutions with a focus on faster payments and real-time data collection.

Availability Begins in 2020

The MasterCard Track Business Payment Service is set to roll out across the world, beginning in the U.S. market in the first half of 2020. The service will be available to merchants and supplier partners who can incorporate it within existing products. Currently, the service is being piloted by partners including B2B payments optimizer Boost, payment solutions providers TSYS and CSI, Accounts Payable automation provider AvidXchange, and Accounts Receivable software providers HighRadius, YayPay, and VersaPay.

Frequently Asked Questions

What is Mastercard’s new global B2B service?

Mastercard’s new global B2B service is a suite of products and services that allows businesses to send and receive payments more efficiently and securely. Mastercard Track can be used by businesses of all sizes, in all industries, and all countries.

Who can use Mastercard’s new global B2B service?

Mastercard Track can be used by businesses of all sizes, in all industries, and all countries.

How does Mastercard’s new global B2B service work?

Mastercard Track works by using a network of banks and financial institutions to facilitate payments between businesses. This network allows businesses to send and receive payments quickly and securely, regardless of their location.

What are the benefits of using Mastercard’s new global B2B service?

There are many benefits to using Mastercard Track, including:u003cbru003e u003cbru003e●       Faster payments: Mastercard Track can help businesses send and receive payments up to 24 hours faster than traditional methods.u003cbru003e●       Increased security: Mastercard Track uses the latest security technology to protect payments from fraud and theft.u003cbru003e●       Reduced costs: Mastercard Track can help businesses reduce the costs associated with sending and receiving payments.u003cbru003e●       Improved cash flow: Mastercard Track can help businesses improve their cash flow by making it easier to track and manage payments.

Who can use Mastercard Track Business Payment Service?

Mastercard Track Business Payment Service can be used by businesses of all sizes, in all industries, and all countries.u003cbru003e u003cbru003eHere are some additional details about Mastercard Track Business Payment Service:u003cbru003e u003cbru003e●       Mastercard Track Business Payment Service allows businesses to send and receive payments using virtual cards. Virtual cards are one-time-use cards that are created for each payment. This helps to reduce fraud and improve security.u003cbru003e●       Mastercard Track Business Payment Service is available through a network of banks and financial institutions.u003cbru003e●       To get started with Mastercard Track Business Payment Service, you will need to contact your bank or financial institution.

Generation Z Prefers Cashless

Generation Z represents a whopping 32% of the world’s population. As the first “digital native” generation that has never lived without the internet and technology, Gen Z sets itself apart in many ways. When it comes to the world of payments, Gen Z has very different expectations than even millennials and overwhelmingly prefers cashless payments — although with much higher standards for design, convenience, and security than other generations.

How Popular Are Digital Payments?

According to a U.S. Mobile App Report from 2017, 70% of consumers in Gen Z have made app-based mobile payments in the last year, surpassing all other generations. A more recent survey by BillTrust found that 79% of Gen Z responders use a digital payment service at least once every month.

Generation Z Is Price Sensitive

Generation Z, and young millennials too, are much more concerned with price than older adults, and much less likely to show any brand loyalty. As many as 80% of participants said that price was the most important factor to them when making a purchase.

Having grown up during the Great Recession of the late 2000s and early 2010s, many Generation Zers watched their parents struggle, which has led to something of a more frugal and pragmatic attitude. This more price sensitive attitude plays into the strengths of the financial tech companies as they can offer services at a low cost.

Generation Z Cares More About Security

Surveys have also found that Generation Z cares strongly about security, with as many as 33% of respondents to one survey claiming that they would stop dealing with a company immediately were their data breached. On top of this, 67% of surveyed Gen Zers would adopt name brand products when they need to seek assurance that their standards will be met.

Gen Zers hold privacy, ethics, and security seriously and demand transparency when it comes to cashless payments.

Generation Z Isn’t Tolerant of Friction

Having grown up in a world that’s fully accepted digital technology, Generation Z is completely at home with digital and real-life experiences coexisting. Because of this, studies have found that they will expect things to run smoothly, and they will be less tolerant than others when things don’t. With the rise of mobile payments, this plays into this generation’s hands and provides them with a system they’re perhaps more comfortable with.

A clunky user experience or an overly complicated system could be enough to lose this generation as a customer. After years of technological revolution and refinement, this is a generation that expects the best.

What Generation Z Is Looking for in Credit Card Processing

It would seem that what is most important to Generation Z when it comes to payments is a seamless, frictionless experience that fits easily around their lifestyles. This means customized credit card processing and payment solutions, transparency, security, and convenience. Having instant, seamless payments is of huge importance, especially when looking to win their loyalty and trust.

The next platform that caters to Generation Z will likely combine all forms of financial services in one from digital payments and banking to investments and loans to further capture the interest of this digital generation.

You can review the variety of services Host Merchant Services offers here.