December 17th, 2015 by Elma Jane
Mobile Payments – It is bound to see more actions with tech giants Apple, Google and Samsung in mobile payment trends. We will also see new technologies like smartwatches, bracelets and rings that will give us the ability to provide payment options.
NFC – Near Field Communication, another familiar face among the payment trends. NFC, however, goes way beyond making payments using smartphones. These speed up POS payment processing quickly and easily without requiring a PIN or signature. While there are other POS payment methods, such as QR codes, NFC will come out on top. Merchants should ensure they have an overview of the current Point-of-Sale options and should, if needed, upgrade to the latest technology.
Security: Tokenization and biometric authentication will have a strong influence on the payment industry.
Tokenization – when applied to data security, is an extremely interesting method of securing credit card data. As the credit card numbers are substituted by tokens that has no value, then no harm can be done if tokens are stolen, which makes tokenization a secure process.
There are several new inventions when it comes to payment processing authentication such as password, PIN, and fingerprint methods. But they are weak so two-factor authentication is increasingly used to improve security.
Biometrics Authentication – like finger print scan, facial recognition, voice recognition, and pulse recognition are set to become increasingly significant. This will increase both security and convenience.
International E-Commerce – It’s important that merchants offer shoppers their preferred local payment method. Merchants who are looking for e-commerce success will need to create an international strategy. Merchants should also consider checking with their payment service providers. Providers know their way around to alternative payment methods.
Cash on the Retreat – Cashless Society? Some countries in Europe are certainly cutting down on the usage of cash. In Sweden, it is now almost impossible to use cash to pay for bus tickets. Acceptable payment methods include customer cards, credit cards, and payments via smartphone apps. Traditional cash-based bakeries no longer exist and instead, now display signs requesting that customers use cashless payment methods for even the smallest amounts. The situation in Denmark is similar; the government is currently debating whether or not to release smaller retailers from the obligation of having to accept cash as a payment method. Cash is on the retreat, and alternative payment methods are advancing. However, cash is still on the list.
Real-Time Payments (Instant Payments) – The European Central Bank (ECB) will bring instant payments strongly in the near future. Instant or real-time payments are a trend which will be with us for a long time to come.
Regulatory Changes – The first Payment Services Directive (PSD) from 2007 is still currently implemented domestically. After a tough two-year negotiation period, the EU has now, finally, agreed on a second payment services directive (PSD2). The European Banking Authority (EBA) is set to develop more detailed guidelines and regulatory standards for various industries. Payment industries should begin preparing themselves now for implementation, doing this will allow them to be ready for the appropriate steps necessary in 2016/2017.
Posted in Best Practices for Merchants, e-commerce & m-commerce, Near Field Communication, Point of Sale, Travel Agency Agents Tagged with: Apple, biometric, credit card, data security, e-commerce, google, merchants, Mobile Payments, Near Field Communication, nfc, payment industry, payment methods, payment options, payment processing, payment service providers, payment services, payment trends, payments, PIN, point of sale, POS, qr codes, real-time payments, Samsung, tokenization
September 29th, 2015 by Elma Jane
There are three contenders competing for dominance in mobile payments.
NFC – or near-field communication, is a contactless data transfer system similar to RFID. When two NFC-enabled devices come into range, you can transfer data from one to the other (such as bringing a phone in range of a credit card terminal).
NFC is found in a lot of phones, especially the flagship devices from Samsung, LG, and Sony. Apple finally jumped into the NFC game in 2014, and Google relaunched its mobile payments service as Android Pay in 2015. Samsung also launched its own app, aptly named Samsung Pay, in 2015.
NFC is a safe method for payments. Sensitive data is stored in a secure element, either built into the SIM card of a phone or placed in a separate chip. In most cases, retailers never actually see your card or bank account data.
QR Codes – or quick-response codes, have the sort of ubiquity that NFC lacks. They work a bit like your standard bar codes, except that instead of relying on one-dimensional analog scanning, they are digital. That means that with a QR code reader app, your smartphone’s camera can be temporarily converted into a scanner. QR codes can embed way more information than your standard bar codes, which gives them the power to do things like open mobile sites, direct you to YouTube Videos, and even enable you to complete mobile payments.
iBeacon – is an Apple-developed technology that uses Bluetooth Low-Energy (BLE, or sometimes also called Bluetooth Smart). Unlike the other two types of technology, it’s really still in the developmental stages. While it can be used for mobile payments, at the moment the biggest application for iBeacon is actually as proximity alert or geo-fence that can go where GPS doesn’t.
It works like this: iBeacon units are set up throughout a building (such as a department store). When someone with an iBeacon-enabled device comes into range of those beacons, they transmit information. Some of the ways this technology could be used would be to transmit mobile coupons or other special offers, to guide customers throughout the store by department, or even to help them find specific items on a shopping list.
NFC devices need to be within 8 inches (though 2 inches is really most effective). iBeacons, on the other hand, have a range of 50 meters, or about 165 feet.
For payments, iBeacons would work nearly the same as NFC: the phone would wirelessly transmit payment information to the terminal or beacon via Bluetooth.
It’s also worth noting that while iBeacons are Apple technology, they are not exclusive to iOS devices. The phone just needs to have Bluetooth Smart and the appropriate app.
Samsung announced its own version of the iBeacon, called Proximity, at its 2014 developer conference in November. it works the same way as iBeacons, but rather than going through an app, Proximity works directly with the phone’s hardware.
Posted in Best Practices for Merchants, Mobile Payments, Mobile Point of Sale, Smartphone Tagged with: Android Pay, Apple, bank, card, credit card terminal, google, iBeacon, LG, Mobile Payments, Near Field Communication, nfc, payments, qr codes, Samsung, Samsung Pay, Sony
May 15th, 2014 by Elma Jane
Looking to buy a new business phone? Wait!!! A slew of hot new smartphones are set to launch in the coming months, 2014 has already seen its share of major releases. This spring, HTC unveiled the new HTC One M8, which packs a slick all-metal body and Samsung debuted the featured-packed Galaxy S5. Nokia also released the Lumia Icon, its new flagship Windows Phone. But some of the year’s biggest releases are still to come, including a new version of Apple’s iPhone and a follow-up to Samsung’s stylus-equipped Galaxy Note 3. Meanwhile, a new Android phone from startup OnePlus could make a splash.
Galaxy Note 4
Samsung is expected to launch a follow-up to the Galaxy Note 3 this fall, one of the best business phones ever made, thanks in part to the included S Pen stylus, which slides out from a slot on the phone’s chassis and turns the device into a note-taking machine. The phablet also boasts a stunning 5.7-inch display that’s big enough for real productivity tasks. Samsung hasn’t officially confirmed any details about the Note 3’s successor, but there are a few safe bets. For starters, fans can expect the line’s trademark stylus to return for the Galaxy Note 4. Its display meanwhile, should rival the Samsung’s newer Galaxy S5 in terms of brightness and picture quality. Finally, considering Samsung packed a fingerprint reader into the S5’s home button, it’s likely the company will do the same for the Note 4. A fingerprint reader can make your business phone more secure, since only you can unlock the device with a quick swipe of your finger.
iPhone 6
Apple’s iPhone 5s is a great phone, but its compact 4-inch display could be too small for some people. Reports indicate that Apple might deliver a much bigger device in the iPhone 6, which is expected to debut this fall in 4.7-inch and 5.5-inch variants. That’s a big deal for business users who depend on their smartphone to stay productive but prefer a larger display. Both models are also rumored to include a blazing-fast A8 processor, an upgrade over the speedy 64-bit A7 chip found in the iPhone 5s. The iPhone 6 is also expected to include the same fingerprint reader that debuted with the iPhone 5s. The reader is embedded in the phone’s home button, and lets you unlock the device simply by placing your finger on the button. And of course, the iPhone is the only smartphone that gives you access to Apple’s App Store, which features the biggest and arguably the best, library of business and productivity apps on any platform.
LG G3
LG is preparing to unveil a successor to its flagship phone, the LG G2 this spring. The so-called LG G3 could be one of the year’s most noteworthy business phones if it retains the G2’s superlong battery life. The phone ran for up to 11 hours in tests that involved continuous Web browsing, making it one of the longest-lasting smartphones ever made. In addition to longevity, the G2 boasts a snappy quad-core processor, a roomy 5.2-inch display and a handy multitasking feature called QSlide, which lets you run a second app in a floating window over your main app. That’s a plus for business users who need to juggle tasks such as responding to email while conducting research in a Web browser. LG hasn’t yet announced which features will get an upgrade for the LG G3, but fans won’t have to wait long to find out. The company is expected to show the device off at a special press event on May 27, though it’s not yet known when the phone will hit store shelves.
Lumia 635
Windows Phone fans saw the release of a new flagship device in the Nokia Lumia Icon this spring. Now, Nokia is following that up with the Lumia 635. A new midrange Windows Phone with a lower price point, that could make it worth a look for budget-minded business users, especially since the device runs on Windows Phone 8.1, a new version of Microsoft’s mobile operating system. One of the phone’s standout features is Cortana, a voice-activated personal digital assistant that can notify you of upcoming appointments, flight information, weather alerts and more. Also, new in Windows Phone 8.1 is the Action Center, which is similar to the notification hub found on both the Android and iOS operating systems. Just swipe down from the top of your phone’s display to view all of your alerts at a glance, and like every Windows Phone device. The Lumia 635 is fully integrated with the desktop version of Microsoft Office.
OnePlus One
The OnePlusOne set to launch this June, is a powerful new business phone with a unique set of features. The 5.5-inch Android device packs a huge display, a top-tier processor and a high-capacity battery. The phone also adds features you won’t find in many flagship phones, such as always-on voice commands. So instead of fiddling with menus and touch-screen controls, you can set an alarm, place an appointment in your calendar or access turn-by-turn directions by uttering a few words – even when the display is off. The OnePlus One also offers a few notable security features you won’t find in most other smartphones. For instance, the phone’s Privacy Guard setting lets you block individual apps from accessing personal information stored on your device. The OnePlus One also ships with built-in encryption for SMS text messages to ensure your private business communications remain private.
Posted in Smartphone Tagged with: Android, Android and iOS operating systems, Android device, Android phone, App Store, Apple's iPhone, Apple's iPhone 5s, chip, Cortana, desktop, device, digital, email, encryption, fingerprint reader, flagship phones, Galaxy Note 3, Galaxy Note 4, Galaxy S5, high-capacity, HTC, HTC One M8, hub, integrated, iOS, iPhone 6, LG G2, LG G3, Lumia 635, Microsoft, Microsoft Office, Microsoft's mobile operating system, mobile, Nokia, Nokia Lumia Icon, OnePlusOne, operating systems, phablet, phones, platform, Privacy Guard, processor, QSlide, S Pen stylus, Samsung, Security, slot, Smartphones, sms, stylus, swipe, top-tier processor, touch-screen controls, voice commands, web, Web browsing, windows, windows phone, Windows Phone 8.1
January 23rd, 2014 by Elma Jane
Commonwealth Bank of Australia (CBA) will now offer the embedded payments service to customers that use the Samsung Galaxy S4 and have CBA’s mobile banking app. MasterCard indicated that this development allows these customers to make payments at more than 1.6 million PayPass-enabled merchant locations around the globe.
MasterCard is just one major issuer that views embedded chips in NFC-enabled phones as the key to unlocking mobile payments globally. But, its news yesterday of how it is going to leverage its Samsung partnership puts a bit of a different spin on digital wallets and mobile payments.
“Our focus is on helping consumers shop and pay in a way that best fits their needs, across all of their devices,” Mung Ki Woo, group executive of mobile and industry alliances at MasterCard, said in a December 11 statement.
The move is part of MasterCard’s continued relationship with Samsung. Earlier this year, MasterCard teamed with the handset maker to offer exclusive deals and special discounts to Samsung Galaxy S4 users in Bangladesh.
Posted in Electronic Payments, Financial Services, Mobile Payments, Mobile Point of Sale, Near Field Communication, Smartphone, Visa MasterCard American Express Tagged with: commonwealth, devices, Digital wallets, embedded payments, make payments, MasterCard, merchant, mobile banking app, Mobile Payments, nfc-enabled phones, paypass, Samsung, shop and pay
October 28th, 2013 by Elma Jane
With banks and shops starting to let customers pay by tapping their smart phones on terminals in stores, the future of plastic credit cards is looking shaky.
MasterCard, which has teamed with Coles and CommBank on these ventures, yesterday said Australians were rapidly embracing contactless payments using PayPass and rival Visa’s payWave. At Coles, six out of 10 MasterCard and Visa payments were contactless.
MasterCard head of market development and innovation for Australasia said three out of 10 MasterCard terminal payments were contactless and there were now more than 175,000 terminals nationwide that could accept them. More than 10 million MasterCards in Australia could make contactless payments.
An EMV (Europay, MasterCard and Visa) standard meant all terminals were capable of handling different brands of contactless payments.
The first stage of the contactless payments or “tap and go” revolution began with Visa payWave and MasterCard PayPass in Australia and the first institution to make contactless payments available locally was the Commonwealth Bank in 2006.
The next stage is to use smartphones rather than just plastic cards for contactless payments. Customers still use their Visa and MasterCard accounts, but the transaction is effected using a Near Field Communication sticker placed on the back of the phone, or an embedded, secure NFC element inside modern Android smartphones.
In Europe, NFC-enabled watches, wristbands, key rings and fobs also were being used for contactless payments and there was no reason this couldn’t happen here.
Visa said it had made a “significant investment” in a mobile NFC ecosystem.
“Visa is working closely with partners like Samsung, Vodafone and Optus on a range of mobile payment solutions that use the secure element and prepaid SIM models.”
CommBank, which previously enabled contactless payments from an iPhone housed in a special case, last week said it would let customers pay directly from their Apple phone using an NFC sticker, and from newer Android phones with embedded secure NFC technology.
The new facility, to be rolled out in the current financial year, is part of a revamp of the bank’s smartphones apps.
Coles said contactless payments had increased in the past year by more than 70 per cent while CommBank’s volume of contactless payments had increased six fold in 12 months. Westpac said it was piloting an Android mobile contactless payment application and was also investigating smartwatch payments.
“We also believe that the next big trend after the rise of mobiles and NFC in Australia will be mobile checkouts, where shoppers purchase products and have them delivered within two or three clicks,” a spokeswoman said, and the moves were “as big a market shift as we’ve ever seen”.
Coles also announced a trial of its own contactless payments technology using NFC stickers. Funds would be drawn from Coles Rewards MasterCards. Some 5000 mobile phone tags would be issued in a trial.
ANZ said it was continuing its trial of a mobile wallet for Android phones begun last year, ahead of making the solution available to customers.
“Our NFC pilot with Samsung and Optus is tracking well and we’re also investigating other payment options such as QR codes,” an ANZ spokesman said.
“Given the fragmentation of the market, we will continue to monitor developments before finalising how we will bring a viable mobile wallet solution for our customers to market.”
St George Bank chief information officer said his bank planned to have a contactless phone payments solution in the market “sometime in 2014”.
The bank has previously been reported to be looking at payments via the Pebble and Samsung smart watches.
National Australia Bank, which unveiled its peer-to-peer payments app, NAB Flik, last month, said it was watching how the contactless payments market developed with “less focus on being first to market and more focus on being best in market.”
The Australian reported last month that Apple and PayPal were exploring an alternative to NFC-enabled contactless payments called iBeacons. When you pass close to a store in a shopping centre, a beacon will detect your phone’s presence and automatically alert you to signature items for sale and specials, or offer other information to lure you inside, and process payments.
CommBank last week told The Australian it was looking at iBeacons technology.
Posted in Credit card Processing, Electronic Payments, EMV EuroPay MasterCard Visa, Near Field Communication, Visa MasterCard American Express Tagged with: accounts, Android, banks, checkouts, contactless, embedded, EMV, EuroPay, fobs, Iphone, MasterCard, mobile, mobile wallet, Near Field Communication, nfc, optus, payments, paypass, paywave, phone, plastic credit cards, prepaid, process payments, qr codes, Samsung, secure, shops, sim, smart phones, Smartphones, smartwatch, sticker, store's, Tags, tap and go, tapping, terminal, terminals, transaction, visa's, vodafone
Visa is going all out against cash driving the adoption of mobile payment services. In Europe Visa expects that over 50 million contactless payments will be made each month by years end. Head of Visa’s mobile business Sandra Alzetta expects a wave of NFC enabled smartphones from smartphone and tablet makers such as Samsung, HTC and LG. The European versions will ship with Visa’s mobile PayWave and Mobile wallet services driving their growth in mobile payment services. Read more of this article »
Posted in Mobile Payments Tagged with: Digital Wallet, HTC, LG, nfc, point of sale, POS, Samsung, Visa MasterCard American Express
