Page 111 - Pay Magazine s2014

volume 7 • fall 2014
CoNtACtless trANsACtioNs usiNG A mobile phoNe*
CoNtACtless trANsACtioNs ArouNd the world
2014: 3 Billion 2018: 10 Billion
*estimated
source: Juniper Research
Contactless = >10% of all transactions
Australia Canada Czech Republic Hong Kong New Zealand Poland Singapore Taiwan
source: Bell ID
10%
maker, analysts believe it could make development of mobile payments vastly simpler and cheaper for industry participants. After Google Wallet, Master- Card and Visa gave the nod to HCE in 2014, the approach gained stature as the next likely platform for mobile payment development once additional security issues are resolved and interoperability standards are in place.
opt in. BLE can give shoppers relevant details about products, promotions and payment options where and when they need them, while merchants may harness the technology to analyze consumers’ in-store behavior to refine—and possibly monetize— their strategies.
hCe and prepaid
Prepaid card issuers could be among the ben- eficiaries of HCE, opening a new frontier for mobile transactions and ancillary features to
a base of consumers with high mobile phone ownership. Loyalty applications, for example, are ripe for development within mobile wallets via HCE. HCE doubters cite security concerns, which SIMalliance identified this year. Analysts, however, believe odds are good that payments industry players will resolve HCE’s security issues, though it’s not clear how long that may take.
emV supports NFC
NFC payments happen to share the same com- munications protocol as contactless EMV, the chip-based payment standard replacing magnetic stripe payments cards. In the U.S., the major payments networks have set October 2015 as the target date for EMV liability shifts and a broad migration is underway. The U.S. move to EMV, coincidentally, is helping lay the ground- work for broader NFC acceptance at the POS.
BLE
A wireless technology enabling merchants to beam information to bluetooth 4.0-enabled smartphones at close range. Using Bluetooth low energy (BLE) beacons installed within stores, merchants can send information to consumers’ mobile devices while they shop, deepening engagement with consumers who
Examples of BLE in action include Apple Inc., which is deploying iBeacons in its stores to route customers
to specific products and information and manage the flow of in-store consultations with store personnel.
BLE could complement NFC by adding relevant offers and discounts to a consumer’s NFC-enabled phone, but redeeming BLE-delivered deals at the checkout would require POS integration.
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