2/3 of all banks to focus on mobile payments from 2015

According to new reserach data from Ovum, 2 thirds of all banks in the world will focus on and give top priority to the modernisation of their payments systems in 2015. This to meet disruptive mobile and immediate initiatives.

Read more here

Comment. I really believe that most of these changes/updates will be based on global payment schemes and on technologies as cloud based payments, tokenization, host card emulation (HCE) and NFC. This driven by the EMV fast roll-out in the US, statements on POS-terminals “must update” by MasterCard and maybe the launch hype of Apple Pay.

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High value contactless payment using NFC phones arrive in UK – only on certified mobiles?

Article on a way (or two) on how to perform high value payment (eg. value more then £20/€20/$20) transaction using mobile keyboard as PIN pad.

Comment: Interesting move.
As I understand, using the mobile keyboard as pin pad needs certification by the large payment schemes (eg. EMV) for evry mobile model..

Using a contactless card alike approach for high value transaction I think would lower end user “hurdle” and avoid the certification need.

- Touch mobile at POS-terminal
– Enter card PIN at POS pin pad
– Done

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MasterCard tests swipe card with fingerprint sensor

MasterCard is enjoying the Apple, Google and others that want to ease payment while having a security level that is acceptable. The company has in partnership with Zwipe, a company that focuses on biometric tech, built a charge plate with a built-in fingerprint sensor and NFC, for trial purposes. The Zwipe MasterCard is said to be extremely secure, as example all data is stored directly on the card, rather than on an outside database.

Comment: I really believe that we will see more contactless cards and in more regions. Purpose is a simpler and faster payment for lower amounts (today amounts up to £20/€20$20). Security is that higher amounts need a PIN (or chip and PIN) and that every fifth purchase independant af value need to be with chip and PIN. I think this is ok, but wonder if the Zwipe MasterCard will ever be in production. Yet another card with higher cost and that need another update on merchant side including new certification.

I still believe that we will have chip and PIN cards, contactless cards and of course mobile virtual cards that will follow already existing standard payment schemes and without the need for new hw/sw and business agreements at merchant side.

 

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Apple Pay in summary

Below is a summary of the launch yesterday.

Apple Pay mobile payment   

User

  • iTunes account with Visa or MasterCard or Amex card on file and issued by issuing banks with an agreement with Apple; American Express, Bank of America, Capital One Bank, Chase, Citi and Wells Fargo at availability with additional banks coming quickly thereafter including Barclaycard, Navy Federal Credit Union, PNC Bank, USAA and U.S. Bank.
  • iPhone with NFC, embedded Secure Element, Touch ID (eg. iPhone 6, 6+ and Watch)

Merchant

  • POS enabled for contactless payment (eg. Mastercard PayPass, Visa payWave, Amex ExpressPay)
  • No new agreement
  • Fee is normal swipe card fee
  • No liability change (Issuer liability)

Issuing bank

Integration of cards to Apple’s system

Fees

  • No charge for users, merchants or developers for transactions
  • Agreement with each individual bank and cut of transaction to Apple

Where and when

  • From October via a free upgrade of iOS 8 to iPhone 6 and 6+
  • USA
  • 220 000 locations with contactless payments enabled
  • Other countries will come

How it works

Instead of using the PAN (card number), a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your iPhone or Apple Watch. Each transaction is authorized with a one-time unique number using your Device Account Number and instead of using the security code from the back of your card, Apple Pay creates a dynamic security code to securely validate each transaction.

  • In-shop, chose card in the passbook wallet, press Tounch ID and tap mobile at the NFC enabled payment terminal.
  • Online shopping in apps with iPhone with the touch of a finger. At checkout chose Apple Pay, authenticate and signing of transaction via Touch ID.
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26 ways to access mobile payment

Article from Business News Daily on 26 payment options with mobile solutions.

Read it here

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Can Apple with NFC ingnite mobile payments? On September 9 we will know.

More and more articles indicates that Apple will do a NFC launch or maybe a statement at the version 6 launch event on September 9. 

Bloomberg article.

Macrumors article here

And the NFC antenna could be hidden under the TouchID sensor, see how here

Comment. If Apple have succed in getting agreements with Visa, Mastercard and American Express and with same (or lower) fees and with no liability shift for merchants…then this is what is needed to see real customer adoption of mobile payments.

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Mobile enabled commerce the next clondyke

An article that says that the next $100B startup will come from heating up mobile commerce arena. The article also sums up the already crowded space and with a US focus.

Read article in Techcrunch here

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