Merchants processing credit cards will see new technology advances on equipment offered by their high-risk merchant account processor, adding both speed and security to transaction processing.
The technology could also ignite new value-added products that we have never dreamt of in the past. 5G should revolutionize both the pos counter-top terminals and the entire wireless mobile market. It will truly be a gamechanger in the payment space.
While 5G technology is still in its infancy, its introduction will result in a global economy where merchants and consumers are more interconnected. Reduced latencies and increased internet speeds will lead to faster and more seamless payment transactions for high-risk merchants.
In the meantime, Mastercard is partnering with transit agencies to enable commuters to make payments via their mobile devices. This partnership has resulted in lower costs of fares, paper tickets, and the upkeep of ticket machines.
With the soon-to-arrive 5G technology, transit companies will be able to collect and manage critical information in real-time in order to provide more efficient ridership.
Overall, high-risk merchants and consumers will experience more personalized services,consumers, in particular, will be able to make payment transactions instantly using their devices. There will also be faster and much-improved inventory management due to the introduction of intelligence in the B2B supply chain.
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Four Merchant Processing Verticals Which Should See Greatest Impact
1) Point-Of-Sale Transactions
You may have noticed an increasing number of pop up shops set up in high traffic areas selling fascinating products, only to disappear a few days later with as much ‘enthusiasm’.
Increased connectivity is allowing retailers who want to adopt cutting edge technology to introduce pop up shops to the market by ensuring that point-of-sale terminals can process transactions.
Imagine the possibilities when point-of-sale systems are democratized even further, allowing anyone – from street vendors to micro-mobility companies – to set up commerce anywhere.
2) Mobile Transactions
Mobile transactions are on the rise across the globe. A research conducted by PPRO shows that e-commerce transactions completed via mobile devices account for about 45% of global e-commerce transactions. There is increasing adoption of mobile e-commerce transactions – from Europe to Asia – with 43% in Western Europe and 55% in the Asia-Pacific region. The introduction of super-fast 5G technologies will only improve consumer shopping experiences and massively increase mobile device transactions.
3) Wireless Transactions
Communication systems have continued to evolve in the last few decades –from fixed lines to amazing mobile data communication. Today, expansions in data traffic has become commonplace as a result of the increasing demand for high data rates.
Due to the possibilities based on the Internet of Things (IoT) as well as the growing number of wireless consumers, the growth of mobile connections is expected. This exponential growth will be supported by 5G technology, which introduces new concepts such as IoT and machine-to-machine communication.
4) Backend OperationsAt Merchant Payment Processors
The introduction of 5G technology will certainly enhance the standard for many financial institutions, with operations such as payment services expected to extend to new channels including transaction security and IOT (Internet of Things) devices. But beyond the front-end banking processes, 5G technology will ensure more efficient back-end operations for merchant processors.
Financial institutions can employ 5G to develop new and improved features, such as security key concepts and authentication methods.
Unlike 4G and LTE technologies, 5G will transform a variety of processes, beyond mobile device operations. 5G will also transform the method of operations in the financial industry, though this will require significant reforms in the way banks and other financial institutions use technology.
5G Will Change Everything As We Know It
Whether in your business or sitting at home, there is an increasing reliance on the internet. Our tablets and smartphones are now used for much more than communication – you can now start the ignition and turn on lights remotely as cars and homes are connected to the internet.
What’s more, facial recognition and fingerprints are now replacing alphanumeric passwords. 4G has paved the way for these advancements to become today’s reality.
Imagine the possibilities with the introduction of fifth-generation mobile networks (5G).
These lightning-fast, super-efficient, and ultra-high capacity networks will enhance tech innovations in the retail space, change the world of commerce and in turn, deliver valuable customer-centric services.
In today’s fast-paced telecom world, 5G is a welcome challenge for now and the future.
Expected to go beyond mobile broadband, 5G technology promises to impact critical sectors like healthcare, education, and agriculture, as well as foster innovations for modern revolutions such as smart cities, self-driving cars, and robotics.
While we are still at the initial stages of 5G technology, it is well beyond a buzzword now. Discussions have begun in earnest about the impact of 5G on industries and how it will disrupt the way we live, work and even play.
The future of technology and innovation will largely depend on the successful introduction and implement of 5G, and when this is done, it will revolutionize the world, our lives, and your life. Ready or not, here it comes.