2016 proved to be a historical year for the payments industry, with numerous new developments and trends. Between the one-year anniversary of the EMV liability shift, mobile payment acceptance, mobile wallets expanding to the web, and payment security updates, payment technology certainly has grown and has continued to evolve.


As 2016 comes to an end, let’s recap the main payment developments that occurred during the past year:


One-Year Anniversary of EMV

This October marked the one-year anniversary of the EMV liability shift within the U.S. Throughout this past year, there have been many ups and downs regarding EMV integration. Slow chip card distribution was one of the first issues that consumers were faced with, as many did not receive updated chip cards in time for the liability shift.


EMV certification and deployment delays also caused major frustrations. Many merchants who met the liability shift were faced with terminals that lacked the appropriate software certification needed to process an EMV transaction, resulting in bottlenecks that greatly slowed down the deployment of EMV-capable solutions. As a result, merchants had to continue swiping credit cards until they received the updated software.


The emergence of EMV technology caused an increase of online fraud attacks. Since EMV technology has increased card-present security, fraudsters are now shifting their tactics to commit online fraud. EMV technology does not apply toward an online transaction, as chip cards have to be processed via an EMV-capable terminal in order to process correctly – making online transactions extremely vulnerable.


The good news is that more and more merchants are incorporating EMV-capable solutions and those merchants who delayed integration are now beginning to upgrade their payment products. In fact, EMV adoption is expected to reach 90% by the end of 2017.


Mobile Payment Growth
Mobile payment acceptance has grown considerably within the past year and has shown to be a convenient solution for consumers. Throughout 2016, payments have slowly shifted to become more digitally influenced, as many consumers are now looking to use their smartphones to replace standard cards and cash to make a payment.


Within the past year, the three most popular mobile payment actions were paying a bill via the web browser on a smartphone or app (65%), purchasing a physical item or digital content remotely via a smartphone (42%), and buying an item in-stores with a smartphone (33%).


The rise of mobile payment popularity is partly due to the expansion of mobile wallets and apps and consumers opting to use their smartphone for purchases out of convenience. According to a Federal Reserve study, 45% of consumers claim to use mobile payments solely due to the convenience factor of being able to store credit/debit card data on a smartphone.


Mobile Wallets Expanding to the Web

Alongside the growth of mobile payments came the expansion of mobile wallets beyond being applicable on a smartphone. Earlier in 2016, Apple announced that Apple Pay® would be available to use on both mobile and Mac desktops by using the Safari web browser. Experts predict that the growth to mobile websites will entice consumers who generally use the Internet to browse for items into buyers.


On a similar note, Google has revealed that Android Pay will also soon be accessible on the mobile web version of Google Chrome. Users will be able to use Android Pay via the web to access certain cites to expedite the checkout process.


The addition of mobile wallets expanding to the Internet brings in additional competition for PayPal, the present-day leader of online payments. With mobile wallets promising to be faster than PayPal, there’s a chance that many websites who currently use PayPal will switch to a mobile wallet as a replacement for online payments.


Payment Security Updates

2016 also brought on the addition of several new payment security updates. In April, the Payment Card Industry Security Standards Council released an updated PCI DSS 3.2 version that included new Appendices within the DSS, additional examination of service providers, and new regulations for retrieving the cardholder data environment.


At the end of May, the PCI Security Standards Council released an updated version of the Payment Application Data Security Standard (PA-DSS). The new PA-DSS regulations support the updated PCI DSS 3.2 version and discuss techniques for secure installation for software patches and guidelines for safeguarding cardholder data.


In September, the PCI Security Standards Council released several updated regulations for the new Version 5.0 of the PIN Transaction Security (PTS) Point-of-Interaction (POI) Modular Security Requirements. The added regulations were devised to block potential malware that could compromise card data during a payment transaction.


Throughout 2016, there were many payment trends that emerged and recent trends that continued to grow in popularity. The One-Year Anniversary of the EMV liability shift was a big milestone that affected the payments industry. Mobile Payments also continued to grow with consumers, while mobile wallets expanded to the web. Several new security updates helped improved protection for payments with added regulations and guidelines.


Here’s to the future of payments and what is to come in 2017!