POS terminal no longer needed or commoditization
Posted: Sun Feb 02, 2025 3:56 am
What should happen next? After the PCI SSC (Security Standards Council) releases a new CPoC (Contactless Payments on commercial off-the-shelf) standard, which regulates the use of a PIN code on a mobile phone screen, more and more merchants will rush towards a software solution that will be a symbiosis of classic contactless card and smartphone acquiring and national and corporate QR. Pressure from central banks and the bidding war will continue - the issue of acquiring profitability and cost reduction will be more relevant than ever.
However, the process will not end there. Acquiring has ceased to be a service that banks exclusively provide to merchants. Access to accepting and processing payments is becoming more and more similar saudi arabia number data to access to water and electricity. There is no longer any “magic” in this service, which means it can be controlled and provided by the state. It is more convenient for the state when there are uniform rules of the game: all POS acquiring converges in one national switch, and all market participants adhere to national standards for design, security and functionality of the software. This is exactly what MADA (Saudi Payments Network) is doing in its home market. There is every reason to assume that in all markets where central banks pursue an active policy of managing payments within the country, this will remain a strong trend.
Of course, in the end, it seems that the direct acceptance of payments will be carried out by several large players in the local market. These will be large local commercial banks, states and several transnational players (Google, Apple, Amazon) who will form the system. They will provide their applications as a service, which will contain NFC payments, various QR, biometrics and everything else that they come up with by this point.
However, the process will not end there. Acquiring has ceased to be a service that banks exclusively provide to merchants. Access to accepting and processing payments is becoming more and more similar saudi arabia number data to access to water and electricity. There is no longer any “magic” in this service, which means it can be controlled and provided by the state. It is more convenient for the state when there are uniform rules of the game: all POS acquiring converges in one national switch, and all market participants adhere to national standards for design, security and functionality of the software. This is exactly what MADA (Saudi Payments Network) is doing in its home market. There is every reason to assume that in all markets where central banks pursue an active policy of managing payments within the country, this will remain a strong trend.
Of course, in the end, it seems that the direct acceptance of payments will be carried out by several large players in the local market. These will be large local commercial banks, states and several transnational players (Google, Apple, Amazon) who will form the system. They will provide their applications as a service, which will contain NFC payments, various QR, biometrics and everything else that they come up with by this point.