Seventy-six percent of retailers plan to accept Apple Pay, Apple’s mobile payment service, by the end of 2017, compared with 59% for PayPal, according to a State of Retail Payments 2016 study by the National Retail Federation and Forrester research group. Others face an uphill battle, with 53% saying they have no interest in Venmo, 43% not interested in Alipay and 38% with no interest in Pay With Amazon.
The study shows that credit and debit card fraud by implementing EMV chip card acceptance has become retailers’ top payment issue in 2016, but retailers are also busy with new data security enhancements such as point-to-point encryption and tokenization to better protect payment card data. State of Retail Payments 2016 surveyed chief information officers and technology executives at 59 large and mid-sized retail companies.
“EMV is important, but chip cards alone won’t do the job of making data secure, especially if they’re only chip-and-signature rather than more-secure chip-and-PIN,” says NRF Vice President for Retail Technology Tom Litchford. “That’s why retailers are working hard on technology like point-to-point encryption and tokenization that will ultimately do more to achieve the goal of putting hackers out of business. And the sooner security issues can be resolved the sooner retailers can bring new innovations to the way shoppers pay for their purchases like mobile and digital wallets.”
With attention focused on security, retailers are taking a measured approach to new forms of payment such as mobile and digital wallets, including Apple Pay, he adds.