With the number of POS devices set to reach 125 million by 2021, there is a strong focus on mPOS abilities which can serve as a solution for economies lacking electronic payment acceptance capabilities.
Small and micro-businesses can benefit from the high penetration of smartphones, as this allows these merchants to use their own phones to perform electronic payments. Without card payment solutions designed for micro-merchants, they are either reliant on cash transactions or are forced to pay unnecessary card acceptance costs.
According to the Visa-commissioned Dalberg study, Small Merchants, Big Opportunity, “more than 180 million micro and small merchants operate across the developing world. While individually these businesses are small, their influence within the global economy is significant: they transact over $6.5 trillion per year and interact with more than 4.5 billion customers every day.”
There are several factors to account for when it comes to adopting mPOS capabilities, including four critical barriers: high transaction cost and inability to invest in smartphones; lack of awareness among merchants and risk averseness of acquirers; regulatory hurdles such as EMV mandate and printed receipts; and limited working capital and dependency on cash flow from business proceedings.
To counteract these issues, however, are several important growth drivers: cost benefit vs cash management; affordable entry point into card acceptance; access to unbanked merchants; and access to analytical and business tools.
PIN on Glass promises to revolutionise mobile payments, especially for micro-merchants. PIN on Glass allows consumers to enter PINs on a mPOS hardware accessory, adding an extra level of security to m-commerce transactions. With the mPOS market set to rapidly rise over the next few years, PIN on Glass will become an invaluable asset to micro-merchants.
The PCI Security Standards Council has been discussing with stakeholders plans for a new security standard that will enable merchants to accept PIN-based payments with the PIN entered on a commercial off-the-shelf device, such as a consumer-grade mobile phone or tablet.
Troy Leach, Chief Technology Officer at the Payment Card Industry Security Standards Council, says: “The PCI SSC is constantly reviewing changes in payment technology and security techniques and whether our existing standards are flexible enough to address those advancements.
After careful consideration, we determined it was appropriate to create a new standard to address both the risks unique to this payment channel as well as security controls that may only be appropriate as a requirement for these types of scenarios.”