Post explaining Samsung Pay

This post discuss if Samsung Pay and if it can be a real competitor to Apple Pay.

Read it here

I beleive the NFC part of Samsung Pay is ok. The MST part has to many downsides and will only work for a while and only in USA..but can be to mark a place and the first step of tech in the Samsung financial services roadmap.

Will Sony, LG and HTC jump on the bandwagon?

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Mobile payment one of top themes at this years MWC in Barcelona

samsung galaxy 6This year’s show in Barcelona features like always a lot of new mobile models. Samsung, LG, HTC and others launch high end expensive look a likes to iPhone 6, more designed, slim and expensive units. In the other end Microsoft and Asian vendors displays low end smartphones at very low cost, targeting emerging markets to let users hop the pc era and go internet via mobiles.

Mobile payment is hotter than ever and seen as one of the main themes besides coming 5G wireless technology at this year’s event. Below are some mobile payments high lights launched and discussed in Barcelona.

Samsung Pay. Launched as “designed as device, merchant and card issuer agnostic” the service will work on the new Galaxy 6 and Galaxy 6 Edge in USA in second half of 2015. The special hardware inside will have support for contactless and mag-stripe terminals. Alike Apple Apple, Samsung Pay will be protected by fingerprint scanning tokenisation from the major card schemes.

iZettle Lite. Europe launch of a the first free of charge mini EMV chip & PIN reader that works with most smartphones and tablets.

Ingenico mPos dongle RP170C. The device offers support for both NFC/contactless and mag-stripe payments via a 3.5mm standard audio jack that can be plugged into any iOS or Android device.

PayPal buys Paydiant. PayPal has agreed to buy Paydiant, a mobile payment start-up based in Boston. Paydiant helps Subway, Capital One and the retailer joint venture MCX, with its not yet launched CurrentC service, to build mobile payments, offers and loyalty into their apps.

Android Pay. Google confirmed that it’s working on a new mobile payments framework named Android Pay. This would not be a new product for users, but an “API layer” that allows other companies to support secure payments on Android in both physical stores and via apps. Google has not explained the details of Android Pay to any great degree, but it says that it would “start with NFC” and eventually accommodate biometric sensors as well.

Google and Softcard. First move after the purchase, is that Google Wallet will be preinstalled in USA on Android mobiles from former owners AT&T, Verizon, and T-Mobile.

MeaWallet to paymentize any app. In the stand in Hall 6 MeaWallet live demo cloud based payments using NFC and Host Card Emulation (HCE). With the updated MeaWallet Mobile Services Platform and the launch of Mobile Business Components any app or wallet can be enabled for payment, access and ticketing and transit functionality.

Mobile payments gadgets. Samsung, LG and many other vendors showed gadgets that also can be used to pay with in store. Just swipe your NFC watch or wristband at the POS-terminal to make the payment.

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Mobile payments 2015 – 10 things to watch

2014 was a year of “great action” in mobile payments and thanks to Apple and the Apple Pay launch, on two new models and in USA, we can look forward to even more action in 2015. This year we will see the banks (at last) and the global payment schemes do big moves and a lot of marketing in mobile payments. At the end of the year we could have seen the mobile payment tipping point..

Things to look out for in 2015:

– Contactless cards will drive mobile payment. The quick change to EMV in USA (major deadline is October 2015), mandates like from MasterCard and roll-out of contactless cards to new countries (even Sweden!), will pave the way for mobile payments solutions using global payment schemes and NFC.

– Large commercial roll-outs. Programs like CurrentC (USA), Zapp (UK) and Alibaba’s mobile payment? (China)  will launch.

– Extended roll-outs (but global?). Apple and Square are working on it and we will see regional/country schemes launch into more countries. Apple Pay next country will be UK.

– Paymentize existing apps. Mobile payment based on standard payment schemes will be added as feature to popular apps.

Faster payments. Direct account mobile payments schemes with real-time money transfer will gain traction. Example is Sweden’s very successful Swish and the coming UK service Zapp.

– Tokenization. After all security breaches and stolen card numbers, we will see the use of tokens instead of card numbers in many new payment programs. Tokens will also be used as keys in for example mobile access, gift cards, vouchers, etc.

– NFC. Will be the preferred pairing method at POS. BLE will also be used, but mainly for marketing by merchants and we will see first large BLE commercial roll-outs (BLE is today mainly used in pilot’s).

– Finger id. We will see more mobile models with Apple’s Touch ID alike solutions, from both the Android and the Windows families.

– Swipe fee change. Like in prepaid where the consumer pays more and merchant less, same “fee shift” will be seen/tried in new mobile payment, mobile money transfer and mobile bank products.

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Let’s go all-in for NFC for mobile payment in shop

In a research from Strategy Analytics by 2020, 254 million mobile users will pay with their NFC-enabled 5 times per month and at average transaction value of $9.

Read more here

Comment. After summer last year I didn’t beleive I should say this, but thanks to the global payment schemes (and for their emerging standards for tokenization, HCE, cloud based payments, etc.) and players like Apple (with their Apple Pay) embracement of NFC based payments…I’ve changed my mind and are ready to go all-in for it!

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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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