Page 23 - Advanced_Payments_Report_2014

ADVANCED PAYMENTS REPORT 2014 – SPONSORED BY

Balancing Act based payment solutions that are easy to implement. For security,
these solutions often store the payment credentials in the cloud, and
Nevertheless, a majority of respondents agree with the statement
tokens, such as bar codes and pictures, are used at the POS. Many
that while security is paramount, consumers still seek ease of use
believe that software only solutions could be subject to hacking
and convenience from a secure payment service, fnancial website
and that they may be appropriate for closed loop systems, but may
or application. Downloading special software or memorising yet
not provide a suitable level of security for open payment systems.
another password, in general, discourage the adoption and use
of services. The development of fexible hybrid software plus hardware
solutions for mobile payments could help deliver the balance
Many merchants have concerns around 3D secure protection for
between security and customer experience. The use of these
online payments and worry about the potential of increasing cart
new technologies including Host Card Emulation and Bluetooth
abandonment rates; as a result, many have decided to bypass
Low Energy beacons could ensure that security protocols will be
the protocol to make the checkout process easier for customers.
adaptable and will respond to customer needs rather than relying
Reaching this type of pragmatic compromise between security
on common processes such as passwords.
and customer experience is something that banks and payment
providers have traditionally found very difcult to do. Going Additionally, mobile brings the promise of additional authentication
forward, the payments industry will have to fnd the right balance measures to the handset. Using the computing power of a smart
of security and consumer experience that will keep information safe phone, security measures such as biometrics, PIN entry and
and provide a service that users will embrace. tokenization could potentially be implemented. User experience
may be enhanced across all channels while increasing security levels.
Solutions that are highly secure but require new infrastructure are
often harder to roll out. NFC technology, for example, is versatile and
ofers signifcant opportunities in payments, advertising, marketing
and loyalty. NFC also ofers a high level of security. But deploying it
requires specialized hardware on both the mobile device and
the POS. This limitation, to date, has contributed to the slow
adoption of NFC by merchants and clients, beyond
pilots and trials.

At the opposite end, there are numerous
start-ups that are promoting software

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