Mirko Spagnolatti, IFSF board member and Business Development Director, Worldline Merchant Services, explores the changing landscape of payment technology.

The world of payments is changing at an unprecedented pace, and this rate of change only seems to be accelerating. For petrol retailers, these constant shifts in payment infrastructures can be a double-edged sword. On one hand, they offer opportunities for improved customer experiences and enhanced services, but on the other, they pose significant financial challenges. As payment technology evolves due to factors like obsolescence, security, and new functionalities, the costs of compliance can place considerable pressure on the already tight margins of the fuel retail sector.

The Dynamics of Payment Infrastructure Evolution

One of the key drivers of change in payment infrastructures is the ever-looming spectre of obsolescence. Certification expirations, such as those related to PCI/EMV, force retailers to stay on their toes. Add to this the constant updates in technology, such as the introduction of new features like contactless payments, QR codes, mobile payments, tokenization and it becomes clear that staying ahead in the payment game is a relentless task.

These ongoing transformations, while promising better customer experiences, can also lead to unforeseen costs for retailers. Upgrading infrastructure to meet new standards can be a significant financial burden. Furthermore, failure to comply within the specified timeframes can result in penalties, creating further strain on profitability. Delayed implementation of new functionalities can also mean losing market share to competitors who adapt more swiftly. To compound these challenges, proprietary and non-interoperable solutions can inflate costs through switch expenses, driving up the total cost of ownership to levels that are often unsustainable.

IFSF: Support in the Shifting Payment Landscape

Amidst the turbulence of evolving payment infrastructures, the International Forecourt Standards Forum (IFSF) stands as a beacon for the petrol retail industry. IFSF plays a crucial role in mitigating the costs associated with payment compliance in several ways.

First and foremost, it fosters a dialogue between the supplier community, paving the way for interoperability. By enabling communication between industry players, IFSF lays the groundwork for cohesive solutions that reduce friction and expense.

IFSF also provides clear roadmaps for compliance with payment mandates, helping retailers plan and allocate resources efficiently. Its commitment to maintaining existing legacy standards ensures that retailers are not left in the lurch with outdated technology.

Anticipating new tech trends and innovations is another feather in IFSF’s cap. By actively participating in API workgroups and staying ahead of the curve, IFSF ensures that the industry is prepared for the payment technologies of tomorrow.

Moreover, IFSF represents the traditional petrol retailing industry in broader or more specialised organisations. This advocacy helps align the interests of petrol retailers with the broader industry landscape, ensuring that their voices are heard and their concerns addressed.

In an era where change is the only constant in the world of payments, fuel retailers face the dual challenges of keeping up with evolving infrastructures while managing costs. The expertise and guidance provided by organisations like IFSF are invaluable in this regard. By fostering collaboration, offering roadmaps, staying ahead of tech trends, and representing industry interests, IFSF acts as a stabilising force in the midst of payment evolution, helping petrol retailers navigate the costly waters of payment compliance.