# 5 Predictions for Payments Landscape in 2022 and our reflections on 2021
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-11-22
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: SoftPoS Revolution: The Future of Card Payments in 2022
Meta Description: Stay ahead with SoftPoS, fraud prevention, Brexit solutions, data-driven insights, and faster access to funds. Discover what's shaping the payments
URL: https://financedigest.com/5-predictions-for-payments-landscape-in-2022-and-our-reflections-on-2021html

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_By_ **_Michael Ault,_** _CEO and Founder, UTP Merchant Services_

**1\. The rise of SoftPoS will continue:**

Software Point of Sale (SoftPoS) is a revolutionary technology that allows merchants to accept card payments through an app on their smart devices and is set to become more prevalent in 2022.

As the technology evolves, merchants will be able to customise their SoftPoS terminals with a rich array of business-boosting features such as loyalty schemes and marketing services. The low-cost entry level point of SoftPOS will also encourage smaller merchants to start accepting cards for the first time further increasing the share of transactions taking place on a debit or credit card.

**2\. [Fraud](https://www.financedigest.com/how-to-beat-online-sellers-fastest-growing-problem-chargeback-fraud.html "How to beat online sellers’ fastest growing problem: Chargeback fraud") awareness will grow:**

SME awareness of [fraud will continue to grow as payment](https://www.financedigest.com/how-can-you-reduce-the-risk-of-fraud-in-b2b-payments.html "How can you reduce the risk of fraud in B2B payments?") providers educate merchants and implement more stringent safeguards to protect them. UTP has already put out a warning to merchants regarding distraction fraud, [here](https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fthefintechtimes.com%2Fa-new-age-the-same-threats-how-todays-fraudsters-are-targeting-smes-and-what-you-can-do-about-it%2F&data=04%7C01%7CNoel%40skyparlour.com%7C7587410d081c4e99a89608d9a8f8ed64%7C44a57925ee474bfcbf9fe6b2de1dca4c%7C0%7C0%7C637726609370390327%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=JgJEQbbP23DutuxlCxUN3nBhnwYnXQ193XuIi3phI5E%3D&reserved=0).

Merchants will also receive greater feedback from their payment systems to [prevent potential fraud](https://www.financedigest.com/payroll-fraud-and-how-to-prevent-it.html "Payroll fraud and how to prevent it") including access to real-time notifications and reporting.

**3\. [Brexit’s impact](https://www.financedigest.com/brexit-might-impact-our-migrant-pool-magazine.html "“Brexit might impact our migrant pool.”-Magazine") may be less severe than expected on the Payments Industry:**

Despite the continued legal wrangling about the status of international card fees in the post-Brexit era, the fintech [community will continue to develop](https://www.financedigest.com/payment-community-engagement-in-the-development-of-the-emv-specifications-increases.html "Payment Community Engagement in the Development of the EMV Specifications Increases") solutions to minimise Brexit’s impact.

This includes solutions such as UTP’s new Dynamic Currency Conversion (DCC) service, designed to help merchants affected by the increase in interchange fees, which will [benefit thousands of SMEs](https://www.financedigest.com/5-benefits-of-iso-9001-certification-for-smes.html "5 Benefits of ISO 9001 Certification for SMEs").

**4\. Merchants will use data to [enhance customer experience](https://www.financedigest.com/enhancing-the-guest-experience-in-hospitality.html "Enhancing the guest experience in hospitality") and improve governance:**

Payments providers will continue to expand the gamut of data available to SMEs such as access to live data that offers a highly focused and customisable view of various [payment trends](https://www.financedigest.com/top-5-payment-trends-for-2016.html "TOP 5 PAYMENT TRENDS FOR 2016").

As well as using this data to track [fraud levels and tailor better fraud prevention strategies](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies "), bespoke reports will be generated to help manage staff rotas, suppliers, and cash flow.

**5\. [Payments](https://www.financedigest.com/how-to-bring-immediacy-back-to-the-supply-chain-with-faster-payments.html "How to Bring Immediacy Back to the Supply Chain With Faster Payments") will get faster:**

Merchants will receive their funds faster as other payments providers will follow in UTP’s footsteps and begin offering same [day](https://www.financedigest.com/have-multi-asset-funds-had-their-day-or-is-their-best-yet-to-come-new-whitepaper-from-camradata-explores.html "Have multi-asset funds had their day or is their best yet to come? New whitepaper from CAMRADATA explores") funding.

UTP are currently the only [payments provider to offer this service which gives merchants the ability to gain full control](https://www.financedigest.com/2019-year-customers-take-control-payments.html "2019: The year customers take control of payments") of their cash flow and receive their funds in hours, not days. In line with evolving demands, other [payment providers will offer merchants greater flexibility to set their own end](https://www.financedigest.com/the-end-of-payments-as-we-know-it.html "The end of payments as we know it") of day and receive their funds on demand.

**Reflections on 2021:**

For UTP’s customers and how they [process payments](https://www.financedigest.com/are-your-payment-processes-in-cheque-for-the-new-legislation.html "ARE YOUR PAYMENT PROCESSES IN CHEQUE FOR THE NEW LEGISLATION?"), the increase of the contactless limit to £100, together with the move towards smart terminals, delivered the greatest benefits for both merchants and customers alike.

Meanwhile, though the uptake of SoftPoS in 2021 didn’t quite match expectations, SoftPoS uptake is predicted to [increase dramatically as 2022 progresses and the software that converts smart devices](https://www.financedigest.com/increasing-prevalence-of-inflammatory-bowel-diseases-to-boost-leukocytapheresis-device-market-growth-fact-mr-report.html "Increasing Prevalence of Inflammatory Bowel Diseases to Boost Leukocytapheresis Device Market Growth: Fact.MR Report") into POS machines becomes more widely available.

Finally, the pandemic broke barriers in many SMEs’ minds, creating a willingness to adapt and embrace new [ways of working and of processing payments](https://www.financedigest.com/5-ways-to-maximise-the-value-of-instant-payments.html "5 ways to maximise the value of instant payments"). This allowed [fintechs and payment providers to deploy new and innovative solutions](https://www.financedigest.com/meet-tilak-joshi-the-fintech-ceo-building-modern-solutions-for-the-gig-economy.html "Meet Tilak Joshi: the fintech CEO building modern solutions for the gig economy") which allowed many merchants to continue trading.

**The Covid legacy**

**The not so great**

Both nationwide and local lockdowns led to a collapse in footfall to [bricks and mortar](https://www.financedigest.com/35-days-after-the-brexit-vote-uk-bricks-mortar-are-far-from-crumbling.html "35 days after the Brexit vote, UK bricks & mortar are far from crumbling") businesses and changed the dynamics of small towns and cities. For how long, remains to be seen.

Lockdown also had the effect of changing [consumer behaviour](https://www.financedigest.com/2021-predictions-less-fraud-shifting-consumer-behaviour-and-accelerating-pace-of-innovation.html "2021 predictions: less fraud, shifting consumer behaviour and accelerating pace of innovation") and shopping habits. Many merchants have been unable to adapt quickly enough or been unable to afford the expense of diversifying their marketing tactics, products, and services.

With [pressure building elsewhere due to inflation](https://www.financedigest.com/analysis-china-central-bank-under-pressure-to-ease-is-hemmed-in-by-inflation-fed-jitters.html "Analysis-China central bank, under pressure to ease, is hemmed-in by inflation, Fed jitters"), staff shortages, and supply chain issues, the legacy of Covid has been more painful for some than others.

**The great**

With purchasing either happening online or, due to [Covid fears](https://www.financedigest.com/oil-falls-more-than-2-on-recession-and-china-covid-fears.html "Oil falls more than 2% on recession and China COVID fears"), taking place using cards, there was a marked reduction in the loss of cash through theft and negligence and SMEs were spared the high fees associated with processing cash. Moreover, it expedited the adoption of frictionless payment [processes](https://www.financedigest.com/emvco-streamlines-approval-process-for-mobile-payment-devices.html "EMVCo Streamlines Approval Process for Mobile Payment Devices") leading to more merchants that were able to offer a full range of payment options.

The resulting shift towards eCommerce benefitted small merchants who found they could trade with reduced fixed costs, increase their market share and capitalise on [online advertising](https://www.financedigest.com/personification-the-new-frontier-of-online-advertising-2.html "Personification, the new frontier of online advertising"). It also came as a benefit to consumers who acquired better and more [convenient payment](https://www.financedigest.com/convenience-vs-security-in-ecommerce-payments-how-everyone-can-win.html "Convenience vs Security in Ecommerce Payments: How everyone can win") options while shopping.


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