Fuel Pump Payments: Set for Major Disruption/Overhaul by 2020

Payments innovation has been in the limelight for quite some time and has been extensively worked up by the industry. Across the retail space, the upside potential that an innovative payment solution provides has been established beyond doubt. As we know, the fuel pump industry is one segment that has relatively been slow to adapt to these innovations. There is a reason for this late adaption. The payment system integrated at the fuel pump/convenience store selling fuel is a complex one and requires more time than a general retail outlet to adapt to new solutions. The certifications required for a new payment system/updated system is also a lengthy process embroiled with huge paperwork. This makes the complete process a costly affair for small convenience stores. One needs to bear in mind that though the majority of the gas stations are branded by the fueling service provided, less than 1% of the total fuel payment outlets are owned by them. It is the smaller convenience stores who look at leveraging the existing brand of the fuel centers and attract consumers by higher service quality. Essentially, these are also the major reasons why the financial services industry has given an extended deadline for the fuel pump industry to upgrade to the EMV chip technology or face the fraud liability shift.

However, this delay has led to fraudsters cashing in on non-complia ...

To continue reading, sign up for MEDICI Inner Circle and get free access for 30 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.