December 20th, 2013 by Elma Jane
Third-party Cookies vs. Consumer Privacy
Some interesting tools that consumers and businesses should be aware of. As consumers, we will likely see more opportunities to opt out of online activities that collect data about our behaviors. We could also see more tools that allow consumers to provide more accurate information.
The Drive to Personalize
Most every ecommerce merchant uses data to personalize shoppers’ experiences. Some common personalization tactics are:
Present upsell and cross-sell offers.
Online merchants use first-party information from their own databases and cookies to track shopping behaviors. They also purchase third-party databases that help predict behavior and products that will appeal to a specific target shopper. Similar methods have been used with offline direct marketing for years. Online tools like third-party cookies…i.e. cookies left by a domain other than the one a user is visiting…and deep data mining have made the practice easier.
Retarget shoppers who have visited a store but did not make a purchase; Segment and personalize merchandising offers in your online store. Target emails at selected consumers who are more likely to buy a certain product;
When used properly with ad networks and ecommerce personalization and recommendation engines, third-party databases increase conversion rates and average order values. They also increase customer loyalty by providing a better customer experience.
Data Collection
Most of the data is now collected with third-party cookies or other means that consumers have opted into, even if they did not necessarily think of it that way. Every time you agree to a license agreement, for example, it’s likely that you are agreeing to share your data in aggregate and anonymously with third parties. Most companies put that in their agreements to protect themselves in the future, regardless of whether they collect the data now.
If third-party cookies are eventually eliminated, there will likely be some type of replacement system that will provide similar functionality. In fact, there’s already a scarier method of tracking consumer behaviors…using digital fingerprinting techniques that profile your computer.
This technique is virtually impossible to block as other devices can see things like your operating system, browser type, your fonts, screen size and depth, time zone, cookie settings, browser plugins, and http header information. The good news is that the use of fingerprinting is relatively small. But, some observers believe this will be a future alternative to third-party cookies.
Tools for Consumers
Axciom, one of the larger data providers, is now offering a tool at AboutTheData.com that allows consumers to see information that Axciom has collected about them and actually correct it if they choose. The bad news is that you have to provide Axciom with even more information than it already has to view the information it has on file. However, you can also choose to opt out of its databases.
You will need to create a login and answer a series of questions to verify your identity. Once that is done, you can review your data, which is broken into several categories.
You may be surprised by the amount of information Axciom maintains. Realize that this is just one of many databases that have information about you that is used in online and offline applications.
Posted in Digital Wallet Privacy, e-commerce & m-commerce, Electronic Payments Tagged with: anonymously, average, browser, cookies, customer, data, data mining, databases, digital, domain, ecommerce, fingerprinting, identity, license agreement, loyalty, offline, online, operating system, opted, order, privacy, purchase, Rates, shoppers, values
November 22nd, 2013 by Admin
As we move to smartphones and tablets as payment methods security and privacy concerns are a real issue. With recent NSA leaks shedding light on our data and the access others have to it, we have to consider security, privacy and health implications. This year alone e-commerce transactions on smartphones and tablets during the holiday season are set to grow by 15%. Although tablets, not smartphones will drive the bulk of that growth, smartphones are set to overtake mobile-commerce payments over the next 5 years. Tablet payments in the U.S. alone are expecting to reach $26 billion in transactions. Currently tablets are more convenient for m-commerce due to their size, but as far as the future of electronic payment processing, smartphones are where it’s at.
The smart merchant sees this coming and realizes frictionless transactions increase sales. The more comfortable and less complicated a transaction is for a customer, the better. Smartphones, tablets, PCs, laptops and more can already process electronic transactions from credit and debit cards, gift cards, electronic checks and more. Money movement is easier than ever and more convenient than cash. Cash is king however in situations where internet connectivity and power are an issue. In India for example, a poor electric grid makes power outages a common occurrence. During natural disasters, when resources are badly needed, power outages or severed internet communications mean no electronic transactions can be processed. So physical currency remains a must, in the future we may see payment technology evolve to where digital money like crypto currency (BitCoin) may be stored on the device itself similar to having cash. As these electronic payment systems evolve, merchants need to position themselves to accept what their market prefers to transact with.
The smart citizen also sees this coming and has concerns that things like a National ID program being established may compromise their privacy.
As an extreme example of electronic transactions, a nightclub in Spain used subdermally implanted RFID chips in a woman that allowed patrons to pay for food and beverages without a credit card.
Posted in e-commerce & m-commerce, Electronic Check Services, Electronic Payments, Gift & Loyalty Card Processing, Merchant Services Account, Near Field Communication, Smartphone Tagged with: bitcoin, cash, connectivity, credit, crypto currency, currency, debit cards, digital money, e-commerce, electronic, electronic checks, frictionless, Gift Cards, health, internet, laptops, leaks, m-commerce, Merchant's, mobile-commerce payments, money, national id, nsa, pay, payment methods, payment processing, PCs, privacy, processed, RFID, Security, smartphone, tablets, technology, transact, transactions
September 17th, 2013 by Admin
Payments
“Geofencing” a program that uses the global positioning system (GPS) or radio frequency identification (RFID) to define geographical bounderies. It creates the opportunities for new business models and generations. Allowing the use of mobile tools and services to not only interact with loyal customers, but also reach potentially new customers when they come into a geographic proximity, explained by a spokesperson from a Mobile and Wireless Group. So it does open the doors to some interesting new applications.
To date, radio positioning signals have been supplied to consumers primarily by the U.S. Military through a constellation called “GPS” or Global Positioning System. Essentially, receivers on the ground…. or in cars….interpret the signals and tell you roughly where you are.
Europe’s Galileo global satellite navigation system is expected to open up a variety of business opportunities. Big changes are in the air as a result of new more accurate systems on the way. One example: geofencing, a highly targeted form of tight, perimeter-based locating.
Galileo
A form of geofencing using the U.S. GPS is already used to monitor stolen vehicles, trucks and delivery drivers, among other things. GPS isn’t particularly accurate, though. With more accuracy, geofencing could be used to create a zone around a store or school, for example…or even a particular vending machine, in the world of commercial applications.
One of the new systems offering fresh potential in this area is Europe’s upcoming Global Satellite Navigation System, or GNSS, Known as Galileo.
“Global Applications”
Where Galileo gets particular interesting for us in the e-commerce world is that, buried deep in the European Space Agency’s promotional descriptions are some telling statements. For example, Galileo will offer a commercial service that will “allow global high-end and innovative applications” with accuracy down to a few centimeters.
For comparison , GPS maker Garmin says its latest GPS receivers are accurate to within 3 to 5 meters. Second, despite being a government project, Galileo will be under civilian control…not government control the way GPS is. It will be fully open to commercial applications. Then too, there’s aunthentication feature Galileo will include…an accurately timed, trusted location factor. The Galileo Commercial Service demonstrator will begin its proof of concept in 2014, with early service reckoned to start in 2016.
Possible Sensitive Transactions
Why do we care about all this? Simple: because of Geofencing.
Geofencing is currently used in mobile e-commerce to deliver ads and promotions based on a geographical region of interest. The GPS is used to define proximity so that an advertiser can know when you’re in the area.
Now add Galileo’s authentication to this mix, plus the microlocations obtainable with Galileo, and you’re in a defferent ballpark…almost literally. Sensitive transactions become possible, along with tracking to the millimeter… when you enter a building, go to the zoo or choose a concert seat. Turnstiles and the cost involved become redundant, for example.
Current location-based access control and payments solutions that use a GPS signal are authenticated through proprietary algorithms.
Security Improved
By virtue of its ability to enable transaction security and access control improvements, in fact, Galileo’s authentication feature will ultimately be perceived by industries such as banking to be a source of added value.
“For example, GNSS-based positioning and accurate timing could be integrated in the encryption algorithms to improve the security and payment process.
Location-based billing using existing GPS is already in use in limited areas including toll-road billing, and it’s being considered for parking as well. However, one of the big problems has been the availability of equipment that’s small enough and power-friendly enough to be practical.
The Technology on the ground…the device in our pocket, in other words…is a limiting factor. If you’ve ever tried to use your smartphone’s GPS chip for more than a few hours, you’ll know it kills the battery, even the the latest phones. Current vehicle geofencing trackers, meanwhile, are large, permanently mounted boxes. New chips will provide portability.
“This Previously Wasn’t Possible”
A mobile and wireless company, recently inroduced a battery-saving GNSS smartphone location chip with Geofence capabilities. The company’s BCM47521 chip lets an application receive an alert when a user enters or exits a virtual perimeter, and uses the current GPS, GLONASS, QZSS and SBAS constellations…all at the same time.
What is unique about this technology is that it’s able to monitor the user’s location as a background task, consuming less power. “This previously wasn’t possible, as the process of continually monitoring for a geofence would rapidly drain a mobile device’s battery”.
Near Field Communications radio standards can be used for the secure payment element, and the more widespread adoption of NFC for mobile payments will also generally help drive adoption of location-based payments.
“Geofencing creates the opportunities for new business models, allowing the use of mobile tools and services to not onl interact with loyal customers but also reach potentially new customers hen they come into a geogrphic proximity.” “So it does open the doors to some interesting new applications.”
“Security and Privacy Crucial”
A networking and connectivity subsidiary is also working on positioning. It’s IZ at location platform is geared towards precise indoor positioning for public places and provides 3- to 5-meter positioning inside.
GNSS will help enable location-based payments, but it’s not everything. “There will certainly be other augmentation technologies that will help to increase the propagation of this in the market. “Security and privacy will also be crucial to acceptance.”
Indeed today, the tested indoor services need to rely on antennas installed outside the target buildings to reproduce the GNSS signal. This requirement causes additional costs, challenging the economic viability of GNSS-based positioning as a means to reinforce the security of access and transactions. Add in the vast amounts of data gained by tracking user movements down to the centimeter, and you’ve got a whole other can of worms.
Posted in Credit Card Security, Electronic Payments, Mobile Payments Tagged with: Geofencing, GPS, payments, privacy, RFID, Satellite, Security, technology, transactions
