The Impact On VARs From Major Changes To Payment
By Debbie Simurda, Director Business Development, Mainstreet Inc.
Because mobile payment is a highly fragmented industry (a June 2014 Business News Daily article lists 26 different options), it’s best for resellers to actively monitor what’s going on in the market rather than aligning with any one solution at this time. While there is a lot of change in mobile payments, one thing is for sure — a few leaders will emerge. Plus with Apple Pay’s launch last month and MCX CurrentC expected for some time in 2015, it’s too early to predict consumer acceptance and usage.
On the other hand, EMV/chip and PIN is a certainty. U.S. retailers across all segments, except fuel pumps, are to be EMV compliant by Oct. 1, 2015. Fuel then follows with deadline of Oct. 1, 2017. The due date marks when the liability shifts to merchants for fraud that results from transactions on a system that is not EMV capable.
Many large retailers have already replaced, or are in the process of replacing, their payment terminals to models that accept EMV. Some are even adding the NFC (near-field communication) capability required by some digital wallets (i.e., Apple Pay) as it’s a small, incremental cost if the entire payment terminal is being replaced in the first place. Many are waiting for the payment processors to enable them to accept EMV.
The opportunity for resellers may be with the smaller retailers who have yet to make the investment in EMV enablement or determine if or what they will be accepting in terms of mobile payments. That investment includes payment terminals, staff training, back-end systems, and potentially even the POS system itself if it needs to be upgraded. The solution can be enriched by aligning with a payments processor able to support every payments option so the end-user has the flexibility to select what works best for their business.
Whether it’s EMV or mobile wallets, staying on top of developments in the payments space and educating customers about the benefits of the various options to their businesses to help them better prepare for the future will further help resellers be successful.