September mobile payments 5 for 5: Samsung Pay to rule them all?

Now that all the major mobile wallets are active in the U.S., prepare to be inundated with opinions about which service provides the best experience.

At least one executive believes it will be Samsung Pay.

That story, from Networld Media Group’s annual ATM & Mobile Innovation Summit, was the most-read article on the site in September.

During a panel discussion about the current state of ATMs, bitcoin, and mobile wallets, ATM Industry Association CEO Mike Lee unapologetically threw his support behind Samsung Pay as the mobile wallet that will “win.”

Lee’s Samsung Pay endorsement can be boiled down to a single feature that is supposed to separate it from other mobile wallet providers: magnetic secure transmission technology support on the device itself.

And judging from early user experiences of Samsung Pay, the MST technology seems to be working pretty well. Maybe Lee is onto something.

It should come as no surprise that articles about biometrics, EMV, and data security also made their way into the top five spots in September. Fraud continues to be top of mind with everyone in the industry and that will only continue as fraudsters develop more elaborate ways to steal data.

5. “Are biometrics the next big thing in payments?” – As the payment industry continues to grapple with breaches, hacking and theft, it seems only natural that industry leaders would turn to authentication technologies that are harder to fake.

What could be more secure than using your own physical body to authenticate payments?

As the payment industry continues to grapple with breaches, hacking and theft, it seems only natural that industry leaders would turn to authentication technologies that are harder to fake. Biometrics, if they work as intended, could be a great step towards safer payments. Just imagine if no one could successfully fake your identity, because they physically aren’t you. That’s the concept, and it’s a good one, what remains to be seen is if the execution can match the theory.

According to a recent report by Acuity Market Intelligence, mobile biometrics is set to secure 65 percent of all mobile commerce transactions by 2020, generating $34.6 billion in annual revenue. The driving force behind this change is the desire for increased security.

Biometrics represent the potential for safer, harder to replicate authentication techniques, but they haven’t been thoroughly tested on the market. Hackers are experts at finding weaknesses unforeseen by developers, so we can be assured that there will be some issues as this technology comes to market. As with any young technology, it’s never perfect straight out of the gate. Biometrics do bring many benefits, they could make it easy to conduct “card not present” transactions and eliminate the need for a physical wallet.

Read the rest of the article.

4. “Mobilizing EMV in the US” – As consumers continue to adopt EMV payments, mobile and contactless payment solutions will also become more commonplace because the two technologies are interconnected, writes Moneris’ Karen Cox.

Soon, U.S. consumers will be “dipping” and “tapping” their credit and debit cards at the register instead of “swiping,” just like consumers in other parts of the world. To combat fraudulent card transactions that continue to plague businesses across the U.S., banks have been rolling out Europay, MasterCard, Visa (EMV) cards, or “chip cards.” allowing consumers to make more secure transactions. Why? On October 1, 2015, a liability shift will apply to all U.S. merchants. Liability shift simply means that if a Chip capable credit or debit card is presented at a terminal that cannot process it as an EMV transaction, the merchant becomes responsible for any fraudulent transactions.

Although some in the U.S. doubted the move to EMV when it was first announced in 2011, the Payments Security Task Force estimates that close to two thirds of general purpose credits cards will be chip-enabled by the end of 2015. Wells Fargo/Gallup Small Business Index found that amongst business owners who report accepting point of sale card payments, only 31 percent say they can accept a chip card, while a whopping 51 percent of those surveyed reported being unaware of the impending liability shift.

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3. “Mobile wallets: The hidden commerce model” – Ed Busby, a former Softcard executive, discusses an overlooked aspect of today’s mobile wallet game.

Most of the conversation around commerce and mobile wallets has been centered on the distribution of coupons and offers.

Undoubtedly, coupons and offers will play a key role in the future development of mobile wallets. Distributing coupons and offers can be quite lucrative; Groupon, for example, boasts over $3 billion in revenues. Coupons and offers are also important elements in driving consumer usage; our experience at Softcard was that our most active users – by far – were those who used merchant offers. But this focus on coupons and offers neglects another hidden, and perhaps more lucrative, commerce model: Attribution.

Attribution is defined as the practice of determining the role that each marketing channel plays in informing and influencing the customer journey. There is an old saying in marketing – “I know half of my advertising budget is wasted, I just don’t know which half!” In the online world, attribution is relatively straight forward, usually measured based on ad exposures and click-through rates on campaigns.

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2. “Ashley Madison: The new face of data breaches” – At the recent ATM & Mobile Innovation Summit in Washington, DC, a pair of security experts discussed the implications of the Ashley Madison data breach, as well as other worrisome cybercrime trends.

For almost two years now, Target has served as the reluctant standard-bearer when it comes to high-profile data breaches.

The retail giant took that title away from TJX, which suffered a data breach in 2007 that affected 94 million consumers and cost the discount clothing chain close to $500 million. While Target’s setback started a string of high-profile retail data breaches and became a rallying cry for the current EMV transition in the U.S., no incident since then has vied to become the new champion.

Enter Ashley Madison.

When news broke that the Canada-based online dating service for married people had experienced a data breach, it set in motion a chain of events not seen with other data breaches.

Fraudsters scrambled to take advantage of the situation in a number of ways. One examble: Criminals created websites that offered to check whether an email address had been used on Ashely Madison. Once they knew they had hooked a worried dating service client, the blackmail began. Reports surfaced that Ashley Madison users were being told to pay into extortionist’s bitcoin accounts in exchange for a promise to keep their secret safe.

Read the rest of the article.

1. “Samsung Pay: The mobile wallet winner?” – That’s what one industry executive declared during the first day of the annual ATM & Mobile Innovation Summit in Washington, D.C.

On a day when Google announced that it had started to roll out Android Pay to compatible devices in the U.S., payments industry executives gathered in Washington, D.C., for the ATM & Mobile Innovation Summit to discuss topics including the current mobile wallet market and its affect on the payments industry. The summit is an annual event co-hosted by the Electronic Funds Transfer Association and Networld Media Group, publisher of Mobile Payments Today and ATM Marketplace.

And while there weren’t many new aspects about mobile wallets to discuss on the summit’s first day, someone always manages to say something at these gatherings that stirs the pot and gets people talking.

During a panel discussion about the current state of ATMs, bitcoin, and mobile wallets, ATM Industry Association CEO Mike Lee unapologetically threw his support behind Samsung Pay as the mobile wallet that will “win.”

Lee’s Samsung Pay endorsement can be boiled down to a single feature that is supposed to separate it from other mobile wallet providers: magnetic secure transmission technology support on the device itself.

Read the rest of the article.

Flickr photo courtesy of Maurizio Pesce.

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