Payments Testing - June 9, 2025
As we stated in our eBook “Payment Testing Trends for 2025”, the payment industry is at a crossroads. The Nilson Report predicts that the global shift toward contactless payments, including the use of digital wallets and other smart devices, will see credit, debit, and prepaid card activity worldwide climb 43% from 2024 levels to nearly 1.11 trillion transactions by 2029. This continued growth in purchase volumes, along with increasing consumer demand for ever more speed, convenience, and safety, continues to intensify the need for robust, efficient, and secure Point-of-Sale (POS) systems.
Given the fact that that 70% of all cards issued worldwide are now EMV-enabled (> 14 billion cards) and 95% of all card-present transactions use EMV Chip technology, ensuring compliance with evolving standards, such as those set by EMVCo and major card networks like Visa and Mastercard, is critical for merchants, vendors, and integrators. At Paragon Application Systems, where testing is our core expertise, we see self-certification for Level 3 (L3) testing as a transformative approach that empowers businesses to meet these demands efficiently while maintaining security and compliance.
This blog explores the strategic value of self-certification in POS L3 testing, highlighting its role in accelerating time-to-market, reducing costs, and ensuring compliance in a rapidly evolving payments ecosystem.
What is L3 Testing and Certification?
L3 testing and certification are necessary to validate that a POS system complies with the transaction-level requirements of major card networks, such as Visa’s ADVT and Mastercard’s M-TIP. These standards ensure secure handling of cardholder data, accurate transaction processing, and adherence to technical specifications for high-volume retail environments. As EMVCo notes on its website, L3 testing is critical for supporting advanced payment methods, including contactless EMV, QR codes, and tokenized transactions, which are now standard in global markets.
Traditionally, L3 certification has relied on third-party labs or payment networks, a process that can take weeks or months and incur significant costs. However, as payment systems grow more complex, integrating biometrics, AI-driven fraud detection, and real-time payment rails, self-certification capabilities offer a streamlined alternative that aligns with the industry’s need for speed and agility.
Why Self-Certification Matters
The payments ecosystem is currently defined by heightened expectations and rapid innovation. Today’s sophisticated consumers have come to expect simple, seamless, and secure transactions across all physical and digital channels. At the same time, new industry research indicates that 65% of retailers feel their current in-store technology does not support the modern shopping experiences that customers are demanding.
“With the increasing role of digital channels in customer journeys, rising customer expectations for store experiences, and growing requirements for customer self-service, point of service (POS) has moved into the spotlight.”
With the increasing role of digital channels in the typical retail buyer's journey, rising customer expectations for in-store experiences, and growing requirements for self-service checkout options, the importance of robust, reliable, and responsive Point-of-Service (POS) systems has moved into the spotlight.
These trends underscore the need for POS systems that can adapt quickly to new standards and technologies. Self-certification empowers businesses to meet these challenges by enabling faster, more cost-effective, and flexible L3 testing. Paragon Application Systems, a trusted provider of certification solutions for leading payment brands and networks, has seen firsthand how self-certification aligns with the industry’s shift toward agility and innovation. Here’s how it delivers strategic value:
1. Accelerated Time-to-MarketIn 2025, speed is a competitive differentiator. Organizations that embrace rapid change will find themselves well-positioned to deliver the seamless, personalized experiences that customers increasingly demand. Unfortunately, many payment providers are simply unable to keep up. According to the Retail Technology Innovation Hub website, 34% of retailers feel that consumer adoption of new technology is moving too fast, while at the same time, 31% believe that the new POS technology needed to improve their competitiveness is prohibitively expensive.
Robust pre-certification and self-certification strategies can help by minimizing the typical bottlenecks and delays that add so much overhead and cost to the process, enabling businesses to conduct more L3 testing in-house. By leveraging simulators that can function as an acquirer, network, or issuer host, support the most current industry mandates, and include comprehensive self-help utilities, organizations can complete testing projects in days or weeks rather than months.
Why it matters:
Faster testing and certification cycles enable vendors and the merchants they support to launch innovative POS solutions, such as those supporting contactless payments or embedded finance, ahead of competitors, meeting consumer demands for seamless experiences more quickly and cost effectively.
“To thrive in this challenging environment, retailers must be willing to invest in and experiment with new technologies and strategies. Some initiatives will succeed while others will fail, so the key is to cultivate a culture of innovation and adaptability.”
2. Cost Efficiency in a High-Stakes Market
Certification costs remain a significant barrier, particularly for smaller vendors and merchants. According to industry sources, certification expenses for complex POS systems can exceed $50,000 per cycle, excluding delays and retesting fees. Pre-certification and self-certification activities reduce reliance on third-party labs, cutting costs by up to 60%. By using tools like Paragon’s automated testing platforms, businesses can perform iterative testing in-house, optimizing resources and passing savings to customers.
Why it matters:
Cost efficiency strengthens market competitiveness, enabling businesses to continually invest in more innovation, such as integrating AI-driven analytics or supporting new payment methods like Buy Now, Pay Later (BNPL).
3. Enhanced Flexibility and Control
The dynamic nature of payments today - driven by real-time payment systems and regional compliance requirements - demands flexibility and agility. Self-certification allows vendors to tailor testing to specific configurations, such as unique transaction types or integrations with digital wallets. For example, Mastercard continues to emphasize the need for POS systems to support QR codes, tap-and-go payments, tokenized transactions and cross-border payments, which require frequent updates and retesting. With better self-testing resources, businesses can more effectively address these changes on demand, without waiting for lab availability.
Why it matters:
Greater control enables vendors to adapt quickly to market shifts, ensuring compliance with evolving standards like EMVCo’s 3-D Secure or ISO 20022.
4. Strengthened Security and Compliance
Security remains a paramount concern across the payment industry. Cyberthreats of all varieties, including ransomware, data breaches, Distributed Denial of Service (DDoS) attacks, and phishing campaigns, have skyrocketed in recent years. Establishing more direct control over the certification process fosters a hands-on approach to compliance, allowing businesses to better understand and address vulnerabilities during testing. By using Paragon’s certification systems, which align with PCI DSS and EMVCo standards, organizations can more effectively identify defects and remediate vulnerabilities.
Why it matters:
Direct involvement in testing and certification helps increase confidence in a POS system’s security, reducing the risk of costly breaches and ensuring compliance with stringent industry and card scheme requirements.
5. Transparency and Accountability
Self-certification requires comprehensive documentation, creating a transparent record of compliance. This aligns with EMVCo’s emphasis on traceability in testing processes, ensuring businesses can demonstrate adherence to standards during audits. Paragon’s platforms streamline this process by generating detailed test reports, enabling vendors to optimize systems for performance and compliance.
Why it matters:
Transparent documentation supports continuous improvement and prepares businesses for future regulatory changes, such as those expected from the Payment Card Industry Security Standards Committee (PCI SSC).
Self-Certification is a Strategic Imperative
In the fast-evolving payments landscape, self-certification for POS L3 testing is no longer optional - it’s a strategic necessity. By reducing costs, accelerating time-to-market, and enhancing flexibility, pre-certification and self-certification capabilities empower businesses to better thrive in a dynamic and competitive marketplace. Backed by industry standards from EMVCo, Visa, and Mastercard, and supported by Paragon’s advanced testing solutions, organizations can confidently navigate the complexities of payment compliance while developing seamless and secure solutions that deliver superior customer service.
Paragon’s Role in Empowering Self-Certification
As a leader in payment testing, Paragon provides innovative testing and certification solutions trusted by major payment brands and networks. Our automated testing platforms and simulators help businesses to conduct pre-certification and self-certification exercises with precision and efficiency. As the payments industry continues to embrace real-time payments, embedded finance, and enhanced security protocols, Paragon’s tools empower vendors to stay ahead of the curve.
At Paragon Application Systems, we believe superior testing solutions are key to the future of the payment industry. By embracing this approach, businesses can take control of their certification journey, ensuring their POS systems are ready for the demands of 2025 and beyond.
If you’re interested in learning more about how Paragon can help enhance and expand your organization's payment testing operations, contact us today.
Free Guide to Payment Testing
Read our free guide to explore a number of key concepts, issues and challenges specifically related to payment testing.
