Tag Archives: Apple Pay

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Featured on Entrepreneur: Tami Cohorst Discusses Mobile Loyalty Programs

Vice President of Abtek, Tami Cohorst,  recently discussed mobile wallets and the future of mobile loyalty programs on Entrepreneur, a prominent online resource for business development news.

She writes:

“What many merchants don’t realize is that mobile wallets can also be used as strategic marketing tools to help increase their bottom lines. The solution is in mobile loyalty programs.

Find out how this mobile wallet trend will effect business loyalty programs on Entrepreneur →

 

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How Can Merchants Leverage Mobile Wallets for Marketing?

ABT_CustomerLoyalty_Icon_1With Apple Pay and similar technology becoming the norm and customers warming up to mobile wallets in droves– approximately 28 percent of smartphone users made a mobile payment last year–many merchants may need to think deeper about how mobile wallets can double as marketing strategy.

The most obvious reason why merchants offer mobile loyalty programs is to give customers incentives to return their businesses. But there are a number of other perks, including:

ABT_CustomerLoyalty_Icon_2Customer retention is always good for boosting the bottom line, but studies have shown that a mobile loyalty program can also boost extra sales among loyalty customers. Kohl’s loyalty customers, for example, average two additional trips to the store and spend $80 more than non-loyalty customers over the course of a year. Plus, mobile loyalty programs require less operational management than a paper-based program, which will ultimately lead to reduced operational costs.

Stand Out From the Crowd

Loyalty programs are an excellent way to differentiate yourself—and having a mobile loyalty program gives you an even bigger edge in the marketplace. Consider what your competitors are doing for their loyalty programs and figure out a way to make yours even better!

ABT_CustomerLoyalty_Icon_3VIP Treatment

Consumers want their experiences to be enjoyable and they want to feel as though they’re valued. Loyalty programs help to make both of these criteria possible. They open the door for more communication between the retailers and the customers during checkout. Loyalty programs also give loyal customers rewards for their patronage, making them feel appreciated.

So, What’s Next?

The next step in mobile loyalty programs, according to experts, will be to integrate them with leading mobile wallet providers. Up until this point, consumers have been forced to use mobile loyalty programs within each store’s individual apps. In the near future, we can expect to see these wallets begin to not only implement store loyalty programs, but ultimately become a platform for integrated, real-time marketing.


Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Cheat Sheet: A Quick Reference Guide to Payment Processing Buzzwords

Payment security is at an all time low and as a result, the payment industry is in process of getting a much-needed overhaul. With this rapid implementation of new rules, processes and technology, there are a lot of payment processing buzzwords that have recently entered into the industry vernacular.

As a business owner, you’re busy with your day-to-day operations, so keeping up on the latest payment processing news and trends is probably not at the top of your priority list. However, as these changes could eventually impact your business, it’s never been more important for you to be in the know.

To help you stay updated, we’ve compiled the following glossary of industry buzzwords for your quick reference.

EMV / Chip-and-Pin

EMV is the future of credit card processing, although it’s not exactly so futuristic anymore. If you’re not already aware of the EMV payment revolution happening in the United States, you can read up on the basics here. In a nutshell, over the course of the next few months, banks will begin to roll out new credit cards in an effort to phase out insecure magnetic stripe technology. These cards will be embedded with microprocessor chips that will allow for more secure transactions. But the benefits of these “EMV” or “chip-and-pin” cards won’t come to fruition unless business owners take action now and update their payment terminals.

PCI Compliance

PCI compliance is a term often shrouded in myths and misconceptions, but it isn’t all that confusing once you break it down. PCI is a set of 12 requirements that all merchants, no matter the size or industry, must meet to ensure a secure environment for credit card transactions. If you’re not sure what’s required of your business in order to establish compliance, you’ll want to check in with your merchant services provider or visit the Security Standards Council website.

ABT_Buzzwords_NFCNFC

Near field communication (NFC) is the technology that enables wireless data transfers between two devices in close proximity, without the need for an internet connection. Think of it like modern-day Bluetooth. Today’s smartphones are embedded with NFC technology to allow for consumers to make payments directly from their phones by simply tapping or waving their devices over an NFC terminal.

Apple Pay

Apple Pay is a mobile application that is sweeping the nation. Essentially, the application allows consumers to transform their phones into mobile wallets by syncing credit card information from their iTunes accounts. Consumers can simply wave or tap their phones over an NFC terminal (currently available at numerous retailers across the globe) to make a purchase.

ABT_Buzzwords_TOKENTokenization

When a credit card is swiped through a terminal set up for tokenization, the card’s Primary Account Number (PAN) is automatically substituted with a randomly generated sequence, called a token. Merchants can use this token to handle refunds, returns and manage other transaction details. The benefit? Tokenization takes sensitive payment card data out of the picture for merchants, eliminating the need to store the data on their networks and the risk of a data breach.


Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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How Will Consumer Concerns Shape the Payments Industry Future?

Did you know that payment service providers are taking note of online conversations and shaping their processes and technology based on what consumers want in terms of mobile payment experiences? Here’s a peek at what that looks like:

ABT_Social-Media_TILES_1What’s Coming Up?

After analyzing 19.1 million social posts across Twitter, Facebook, Instagram, forums, Weibo, Google+ and YouTube, the study uncovered a number of trends in social media conversations:

  • Consumers are interested in learning more about “enriched experiences delivered through mobile payments, such as convenience, loyalty and rewards.”
  • 94% of online conversations lean favorably towards mobile payments..
  • Consumers are excited to share their purchases made via mobile payments on social.

Major companies across the globe are playing a vital role in the online mobile payment atmosphere. Key players driving the competition include brands like Apple, PayPal, Starbucks, and eBay, among others.

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So what do these conversation trends tell us about what to expect in mobile payment technology? We can anticipate the following:

  • Better consumer experience
  • Improved, more user-friendly mobile wallet experiences
  • More businesses accepting mobile payments

Mobile payments are quickly becoming an integral part of consumers’ daily lives. In order for businesses to stay competitive, it’s important for them to stay on top of the trends in the industry.


Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Can Apple Pay Put Your Credit Card Security at Risk?

Recently, the payment industry has been a-buzz about reports that Apple Pay may be suffering from security weaknesses. While Apple Pay offers simplicity and speed for users, it is really worth the risks? Or is all the discussion of potential fraud just a bunch of media hype?

ABT_Apple-Pay_ICON1Apple Pay 101

Apple Pay is a mobile payment service that allows consumers to make credit and debit payments directly from their iPhone 6, 6 Plus and the highly anticipated Apple Watch.

Think of it like a digital, mobile wallet.

Apple pay allows users to import their credit card information from their iTunes account into the Passbook application on their device. Once set up, customers can simply wave their phone over a Near Field Communication (NFC) terminal, located in a wide range of retail stores across the country, to make a purchase.

How Secure is the Apple Pay System?

When Apple Pay launched in October 2014, it was touted as being an “easy, secure and private” mobile payment solution. And up until recently, all was going smoothly. So what’s the real deal with all of this talk about fraud and security risks?

Fact: Fraudulent charges are being made through Apple Pay. Some estimates report that upwards of 6% of transactions made via Apple Pay are fraudulent.

ABT_Apple-Pay_ICON2However, it’s important for consumers to understand that Apple Pay accounts are not being hacked. The data infrastructure on Apple’s part is up to standards. The problem lies within the provisioning; a process in which banks verify the legitimacy of cards when they’re uploaded to Apple Pay. What’s happening is that criminals are taking stolen credit card information, creating iTunes accounts, using those accounts to provision Apple Pay accounts and then making fraudulent purchases.

At this time, consumers do not need to be overly concerned about the security of their credit card data once it’s uploaded to Apple Pay, but that doesn’t mean they’re not at risk. Consumers should always take extreme caution when sharing their credit card information to ensure that it’s going into the right hands.

Be Prepared! What Merchants Need to Know

The payment landscape is changing rapidly and for merchants, the most critical thing to take away from this discussion is an understanding of the importance of payment processing security.

Even the most diligent merchants experience fraud, but there are a number of ways that businesses can make transactions more secure for their customers. As Apple Pay and other mobile payment technologies become more integrated into the payment industry, more security weaknesses will likely emerge, and alternate solutions will need to be implemented.

During this time of transition, it’s important for you, as a business owner, to stay informed on all of the latest payment technologies and trends, and be sure that you have systems in place to ensure maximum security for your customers’ payment information.


Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

 

 

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Will Wearable Tech Revolutionize the Way Customers Pay?

The era of wearable device technology has arrived. In fact, recent studies show that approximately 30 percent of United States smartphone holders already own wearables. As technology continues to advance the development of these personal devices, there will certainly be an increase in more convenient payment options for consumers—and smart retailers are catching on.

ABTK-small-blog-image-WearableTech-01Beyond Smartphones: Wearable Tech Offers Payment Convenience

Smartphones already offer a variety of applications capable of swiping cards, processing personal information and recording product metrics. But wearable tech may go even further when it comes to making the payment process more convenient for consumers.

While the impending Apple Watch has invoked much of the interest behind smartwatches, other high-tech wearable gadgets are being developed. For example, Disney already offers guests the ability to pay for items via MagicBand, a colorful bracelet that directly links to a personal credit or debit card. The so-called “Power Suit” allows its wearer to make payments via their clothing sleeve, through use of NFC technology. And many big-league fiscal providers, like Visa, have considered investing in creation of expansive technology to take these processes even further.

This small technological revolution has the potential to redefine the way in which consumers pay for goods and services. And as we anticipate where technology will take us in the near future, all eyes are on the coming Apple Watch and its Apple Pay capabilities.

ABTK-small-blog-image-WearableTech-02Time Ticks Down to the Launch of Apple Watch

In recent months, the Apple Watch has single-handedly piqued smartwatch (and wearable tech) interest more so than previous rivals, like the Pebble or Samsung’s Galaxy, ever did.

Although it’s not set to arrive until April 24, the industry buzz is already undeniable. A two-part survey featured on Computerworld reflected a record 8,266 consumers placing higher interest in the Apple Watch than on the “revolutionary” Google Glass.

Tech corporations and industry gurus are taking note, and merchant services may receive a significant boost from the Apple Watch’s high flexibility towards sales processing—especially when it comes to the wearer’s ability to conveniently and quickly use Apple Pay. By offering such flexibility, smartwatches have definitely shifted from mundane “power person” ideology to more practical, professional solutions.

The Optimized Consumer and the Future of Payment Processing

Faster payment processing is always the endgame for retailers, so the wearable trend is a logical next step in attempting to near that goal. When the consumer is waiting in line for a shorter amount time, more payments are being processed, and at quicker rates. At first glance, this may appear as a minimal side effect, but the overall impact of highly optimized sales processing is astounding.

So where will the future take wearable technology and merchant sales? Likely, security will be a conservative pit-stop, as fiscal dealings are historically shaky when new technology arrives. However, if wearable tech is proven to be secure—and, if the industry begins thriving upon the shift towards speed processing—more technology may follow, and it’ll further redefine the industry.

For now, however, the wearable tech trend is still in its relative infancy. We’ll be watching to see where it takes us.


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Scan vs. Swipe: The Benefits of NFC Payments

With its Apple Pay product, Apple is kick-starting the scan vs. swipe revolution that credit card and mobile wallet companies have been trying to usher in over the past few years. Scanning, which allows brick-and-mortar businesses to be more competitive with ecommerce ones, was made possible through the development of near field communication (NFC)­—a technology that allows ­two devices to communicate and exchange information with one another wirelessly.

Stores and businesses equipped with NFC technology can scan a customer’s card or smartphone for payment instead of swiping their credit card through POS systems. So how do NFC payments benefit you and why are merchant services companies promoting it?

ABTK-small-blog-image-ScanVSSwipe-1 Ease of Use

NFC is easy for both retailers and customers to use. Set up and installation is simple and your merchant services provider can answer any questions you have. Consumers simply scan their credit card or smartphone for payment. For smartphone users, there’s the extra benefit of not having to carry multiple store and credit cards in their wallets. They can pre-load all payment information to a mobile wallet app on their smartphone.

Cost Reduction

Businesses that want to offer NFC payments as an alternative to traditional credit card processing will have a one-time cost of purchasing the readers. Readers are reasonably priced and can be obtained from your merchant services company. Reduced paper product use will save you money and attract customers who prefer to do business with environmentally conscious companies. Aside from the purchase of the reader, NFC payments can cost you less annually than standard credit card processing.

ABTK-small-blog-image-ScanVSSwipe-2Payment Processing on the Go

Since there are no paper receipts requiring signature, payment processing via NFC is much faster. Businesses equipped with NFC readers can handle more customers in a day than those with standard POS systems. Customers who like the ease of online payments will be drawn to businesses that offer self-service NFC readers at their checkouts. Service professionals and salesman in the field who have mobile merchant accounts can also take advantage of NFC.

Advertising and In-Store Marketing

NFC lets customers quickly and easily redeem coupons and gift cards, and add to loyalty reward programs—benefits that are unavailable with traditional credit card processing. Besides these wins for customers, you can use NFC to offer discounts for and promote your products and services. Retailers can also take advantage of NFC’s in-store marketing capabilities. As customers near certain products or areas in a store, NFC can send targeted coupons or product information to their mobile devices. Through various mobile programs and apps, customers can trade discounts and offers with other users.

Improved Security

Magnetic stripe readers are subject to counterfeit cards and skimming. Enhanced security technology that can eliminate these types of fraud is compatible with NFC’s wireless communication, but not with magnetic stripe readers. Reduced fraud means fewer chargebacks and more profits for merchants.


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5 Reasons Why It’s Easier Than You Think For Your Business to Accept Apple Pay

Apple’s new mobile payments service, Apple Pay, allows consumers to use certain mobile devices to make payments in an easy, secure and private way. Here are a few benefits.

ABTK-small-blog-image-ApplePay01 1. Better Than a Mobile Wallet

Apple Pay isn’t exactly a traditional mobile wallet, it’s a mobile payment enabler, and that makes it easier to use for customers. Users can keep their current credit cards without worrying about having to store money in a separate digital account. It’s one advantage that Pay has over mobile wallet systems like MCX–a retailer effort to enter mobile payment markets that requires users to create an entirely new account.

2. Touch-to-Pay is Simple and Speedy

Perhaps most importantly for users, Apple’s touch-to-pay system works, and works fast. You touch your phone to a sensor (this helps remove NFC interference issues) and tap the iPhone’s main button. Sometimes a PIN is required, but the process is fast and dependable. This compares favorably to options like CurrentC, the latest MCX project that works with less dependable and unnecessary QR codes.

ABTK-small-blog-image-ApplePay023. Timing is Everything

Apple is well-positioned to see quick growth in Apple Pay. Mobile payments have been around long enough for most users to become acquainted with them; currently, they have an estimated 42% of American smartphone users and a large Passbook customer base to draw from. Perhaps even more importantly, Apple has released Pay just ahead of the massive upgrades that U.S. merchants will need to make to their credit card systems–upgrades that could go a lot more smoothly if merchants also upgraded to Pay at the same time.

4. Start Big, Go Small

When Apple first announced Pay, it opened with compatibility for around 220,000 stores in the United States. This is a fairly small start, but it shows Apple’s intent: Start with the big guys, then expand outward into smaller retailers and chains as Pay evolves. By first recruiting more of the top 100 retailers in the U.S., Apple has given Pay a momentum boost right out the starting gate. People are already used to it, and retailers are already working on management systems for it.

ABTK-small-blog-image-ApplePay035. Security is More Important Than Ever

Apple Pay dodges many security vulnerabilities by utilizing tokenization. This helps reduce the amount of sensitive data transferred and makes that data as useless as possible to hackers. It also introduces new security in the form of Touch ID and similar features. In a world where big seller databases are being hacked increasingly often, this is a welcome benefit for all users.


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How Holiday Shopping Has Changed in 2014

For many retailers, Black Friday sparks the beginning of their busiest period of business: Holiday shopping. Especially this year–when Black Friday sales were already underway as early as November 1. It’s just the tip of the iceberg. Forbes reports that post-recession savvy shoppers have changed the rules of the holiday shopping game. So how can you make the most of this potentially very lucrative time of year?

Know your window of opportunity. Did you know that you get ABTK-small-blog-image-NOV-1almost a month–28 days, to be exact–to make the most of your holiday shoppers?

• Mobile payments are the key. Most of your shoppers might use cash or plastic, but one way to help speed up long check-out lines? Mobile payments.* ABTK-small-blog-image-NOV-2

Reward savvy shoppers. Price-matching will remain a key element of staying competitive with shoppers.

Each shopper matters. Black Friday shoppers will spend, on average, $399/person.

• Apple Payers and Google Walleters will spend more. In fact, they may spend up to 17% more than customers not utilizing mobile wallets.

•  Protect yourself. With such heightened sales activity during theABTK-small-blog-image-NOV-3 holidays, the risk of data breaches is especially high. Do you have an action response plan in place?

*Need some help with this? Click here.

 

 


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Abtek Stops By MLive to Talk About ApplePay, CurrentC, and the Future of Mobile Payments

abtekmliveAbtek’s own Tami Cohorst stops by MLive again–this time to discuss Apple Pay, CurrentC, and the power that consumers collectively wield as more players enter the payments processing arena.

On the way data is handled across mobile payment options, Cohorst says, “All that data is housed somewhere. And this is the problem with the security breaches that we see.”

Read the full article here.

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