By Bernadette Wilson
In this interview, Bill Lodes, First American Payment System’s senior vice president of business development and strategy, provides ISVs with information to help them focus on important payment trends and to meet challenges that continue with EMV adoption and PCI compliance. He also shares top opportunities for ISVs to grow their businesses.
BSM: What are the most important trends ISVs should pay attention to in 2016?
Lodes: Looking ahead, there will be numerous trends that will continue to emerge and develop within the payments industry.
Mobile wallets gained much recognition during 2015 with the acclaimed Apple Pay and the newly added Android Pay and Samsung Pay. Consumers are now starting to utilize their smartphones for everyday purchases, adding convenience during the checkout experience with the quick processing time. All three mobile wallet leaders will continue to gain acknowledgment this year for future payments, as more and more consumers begin replacing credit cards and cash for their smartphone. The opportunity for ISVs to take advantage of mobile wallets is happening now. Acceptance of mobile wallets will increase market share and ensure that ISVs are offering the latest and protected solutions available.
ISVs also need to continue learning about and integrating EMV solutions. Delaying in adoption could result in liability long term and come with hefty fines. The time is now for ISVs to implement the necessary EMV solutions and technology to protect themselves. ISVs that partner with a payments processor will have access to state-of-the-art technology and industry knowledge, and save ISVs the time and resources to have to create their own solutions from scratch.
When it comes to payments, security can be a tricky task to accomplish. Recent breaches at Home Depot and Target have shown that by not taking preventative security measure can cause significant harm. ISVs have the opportunity in 2016 to connect with a payments partner that can safeguard their software and solutions and equally provide the guidance and support necessary to combat fraud and breaches.
BSM: With EMV garnering so much attention in 2015, will it continue into 2016 or has the emphasis on it changed?
Lodes: EMV will unquestionably remain to have adoption problems and endure challenges to getting the ISV community to integrate these solutions. There is still quite a bit of uncertainty surrounding EMV, as ISVs and their customers alike are hesitant on the impact EMV will have towards them.
To meet the needs of their customers in 2016, ISVs need to focus on incorporating EMV-compatible solutions to support the growing adoption of chip card technology. ISVs will be able to maintain a competitive edge within their market and accelerate the delivery of EMV solutions to their customers by partnering with a trusted payments partner.
Integrating EMV can be challenging. Therefore, it makes sense for ISVs to partner with a payments provider that is an expert on EMV and implementation. The easiest way for an ISV to integrate an EMV solution is working with a payments provider that has the capability of developing a semi-integrated solution. By moving the transaction out of the ISVs software, ISVs are taken out of PCI scope, reducing liability and eliminating the need for an ISV to go through the lengthy and expensive EMV certification process.
BSM: Has PCI 3.1 changed the playing field for ISVs?
Lodes: Any vendor that transmits, processes, or stores cardholder information must comply with the security guidelines of PCI DSS requirements. However, becoming compliant is complicated and costly. ISVs can change the playing field by working with a payments provider that can take the burden away by offering a PCI compliant payments platform. A payments provider is there to take the guesswork away, as they are in business every day to help ISVs become compliant.
BSM: What do you think are the top opportunities for ISVs to grow their businesses this year?
Lodes: As the payments industry continues to evolve, ISVs will need to continuously remain challenged to stay relevant. Partnering with a payments partner will give ISVs the support and guidance they deserve and need. A payments partner will be able to help guide ISVs on becoming EMV compliant, and equally be there to help solve their needs.
2016 also presents the opportunity for ISVs to gain additional market differentiation. ISVs that trust a payments partner will be able to integrate payments acceptance with a comprehensive end-to-end integration process. These resources will allow ISVs to differentiate themselves within their respected markets, providing the possibility for endless revenue.
On an ending note, ISVs have the chance to grow their businesses this year with advanced security solutions and products. By incorporating EMV compliant solutions, relying on a payments provider on becoming PCI compliant, and staying abreast with the most modernized forms of technology, ISVs will be well on their way to having a prosperous and seamless 2016.