The mobile-ization of modern banking

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On September 9–11, 2015, ATM Marketplace and sister publication Mobile Payments Today will cohost the ATM & Mobile Innovation Summit in Washington, D.C.

Over its three-year history, this event has tracked the rise of omnichannel banking, driven by the ATM, the Internet-connected PC and the smartphone. It has also tracked the parallel rise of the mobile wallet, which, depending on your point of view, is either a complement to or a contender with omnichannel banking.

While the banking industry adopted the mobile banking app with relative enthusiasm as an extension of the ATM and online banking experience, this has not been the case with the mobile wallet for two reasons: 1) uncertainty about risks arising from the m-wallet’s interactivity with devices and systems external to the card issuer; and 2) bewilderment about the features and benefits of scores of m-wallet choices.

The first concern is addressed in the new guide, “Mobile Payments Security 101,” a free download from Mobile Payments Today. The second is tackled in MPT’s new “Mobile Wallet Comparison Guide 2015,” the first edition of a premium publication that neatly sorts out the differences among more than 150 m-wallets. You’ll find excerpts from each publication below.


Mobile Payments Security 101

By Robin Arnfield, contributing writer

The popularity of banking and m-commerce on smartphones and tablets, merchant adoption of mPOS devices such as Square, the growth of in-app payments, and the emergence of mobile wallets and NFC-based point-of- sale payment services such as Apple Pay mean ensuring the security of mobile transactions and the privacy of customers’ data is critical.

“Mobile and other connected devices are fast becoming the leading way for users to access commerce and banking services,” said Vanita Pandey, senior director of strategy and product marketing at San Jose, California- based ThreatMetrix. “Mobile is the biggest emerging opportunity and risk for businesses and financial institutions trying to deliver frictionless experiences to their customers. Continued growth of mobile payments and banking will lead to stricter rules and regulations to secure these transactions.”

This report provides guidance on how merchants and mobile payment service providers can protect their users against mobile payments fraud. It reviews best practices for mobile payments security, such as:

  • not jail-breaking or rooting smartphones;
  • deploying technology to verify the identity of mobile devices used for m-payment transactions;
  • replacing consumers’ card information with one-time tokens;
  • ensuring cardholder data is encrypted from the point of interaction with an mPOS device’s card reader all the way to the acquirer; and
  • installing controls on mPOS devices so only approved and secure apps can be downloaded by employees.

Mobile Wallet Comparison Guide 2015

by Will Hernandez, editor, Mobile Payments Today

A precise definition for a “mobile wallet” is as difficult to peg as the number of providers. Some industry observers believe a mobile wallet can do just one thing well, while others believe it needs to be a true replacement for a physical wallet.

That said, it’s safe to say there is widespread agreement that a mobile wallet can be a place where consumers can store and organize coupons, loyalty programs, payment cards, tickets, car-insurance identification and whatever else can be turned into a digital item from its original paper or plastic form.

Some mobile wallets tout other features such as bill payment, comparison shopping, location-aware services, person-to-person payments functionality and social-media connectivity.

Not every mobile wallet on the market today can perform all these functions, but each one is designed in such a way that they’re intended to lighten the load in a consumer’s wallet or purse. Some providers do it better than others, but it’s clear that many companies are fighting to be top-of-mind on a consumer’s smartphone or tablet.

While it’s almost impossible to track every single mobile-wallet provider worldwide, we’re here to help give you an inside look into some of them.

The Mobile Payments Today Mobile Wallet Comparison Guide gathers together in one spot a compendium of nearly 200 mobile wallets, compiling their differing capabilities in an easy-to-compare format.

We asked mobile-wallet providers a wide range of questions about their product. As mobile wallets become more prevalent, consumers are seeking to use one (or a few) with the best features. Software developers provided us with answers about their consumer-facing features as well as some other details that might not be important to everyday users such as security settings and whether a merchant needs additional hardware to accept payment or coupons from the mobile wallet.

photo istock

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