I would hazard a guess that few of you – if any at all – have ever surfed. Most of us have spent time at the beach, getting sand in our swimsuit, or sunburned if we laid out too long, but only a small number have ever paddled out on a freshly waxed board to try and catch the big wave. The thing is with surfing, if you don’t time it right, and launch your attempt too late, you wipe out. Well, in a way that’s what it’s like with new technology. As wave after wave of ground-breaking innovations make a splash, some may wait too long before they dive in. That’s understandable, but if you’re not careful you’ll miss out on the newest, sleekest thing that your chief competitor will quickly leap at – giving them an edge. In the retail fuel industry, we know this all too well. And with the influx of technology meant to improve, streamline, and pump life into our businesses, one of the most significant breakthroughs has been the hi-tech advancements in pay-at-the-pump credit card readers.
Tap-and-go. Imbedded chips. Smart cards. At the turn of the century, these technologies were still in their infancy. But over the years they developed in leaps and bounds, with the increasing threat of credit card fraud prompting robust security features to become a priority. The first chip cards were introduced in the 90s, eventually replacing the long-standing magnetic stripe, an increasingly obsolete tech vulnerable to “skimming” and counterfeiting. The new state-of-the-art cards offered significantly enhanced security, and shortly thereafter the Europay, Mastercard, and Visa (“EMV”) standards became the established method for chip-based transactions. Fraud reduction as a result of EMV became so significant that the credit card companies introduced liability shift rules, wherein liability shifts to the party – card issuer or merchant – that was least compliant with EMV requirements. As of 2023, there were over 13 billion chip cards in global circulation. EMV’s accelerated rise in the marketplace was astounding.
That said, like a barreling wave approaching the shore, the speed of transactions went up rapidly when contactless payments were introduced. In response to consumers’ evolving preferences, many in the retail fuel industry began upgrading to credit card readers that support Near Field Communication (“NFC”) technology. This allows customers to make payments quickly by simply tapping their contactless card or smartphone on the reader. This speed not only enhances the customer experience but also helps reduce queue times at gas stations, leading to better overall service. As you might expect, this technology became extensively adopted during the COVID-19 pandemic as consumers sought out contactless interactions for safety reasons. The ease, speed, and efficiency available through contactless payments quickly became an expected feature for customers on the go.
And yet, the waves kept coming. The latest credit card readers are increasingly incorporating mobile payment capabilities, supporting platforms such as Apple Pay, Google Pay, and Samsung Pay. This integration appeals to a growing demographic that relies on their smartphones for transactions. By accommodating these payment methods, station owners can attract tech-savvy customers with the potential to increase sales. Further, to foster customer loyalty, many new credit card readers come equipped with features that allow easy integration of loyalty programs, like automatic points accumulation with each fuel purchase. What’s more, looming over the horizon, there’s developing technology, like biometric authentication. As well as AI-based fraud protection. I know this is starting to sound like science fiction, but so did tap-and-go twenty-five years ago.
All this to say, investing in cutting-edge credit card readers is not just about keeping up with technology. It’s about enhancing customer satisfaction and improving security and efficiency. These continuing advancements will help retailers not only meet the expectations of today’s consumers but also drive growth in an increasingly competitive market. It’s true, things develop so fast it can make your head spin, but you need to stay ahead of the curve – or the crashing wave. New technology will keep rolling in. Start waxing your board.
At Spirit®, we understand the need to prepare for what’s coming ashore. Contact us at 509-203-7357 or [email protected] to let us know how we can help your business have a successful future.