Page 71 - Pay Magazine s2014

volume 8 • fall 2015
m-PaymentS on the marCh (Based on information available at press time.)
A glance at existing and new mobile payments services enabling a variety of smartphone payment options at the POS.
SamSung Pay
Comes preloaded on newer Samsung handsets, enabling SE-based contact- less payments at any terminal, NFC- enabled or not. Launched in Korea August 2015, U.S. September 2015.
android Pay
For NFC-enabled Android handsets; uses host card emulation (HCE) technology instead of secure element (SE) for third-party integration by banks and merchants. Live in U.S. September 2015.
mCX’S CurrentC
Merchant-owned consortium’s cloud-based app supporting QR
code-based POS payments for iPhone and Android. Piloted in fall 2015 in Columbus, Ohio.
aPPle Pay
For NFC-enabled iPhone 6 models and newer iPads; includes SE built into handset; requires NFC-enabled payment terminal at the POS. Launched in U.S. October 2014, U.K. July 2015.
SiX m-PaymentS PrediCtionS from riChard Crone
1 no single wallet will rule them all. in the picture with Apple Pay by keeping their cards
Many providers and approaches will coexist, at least in the immediate future. Common themes within the m-payments user interface will begin to emerge across different devices and operating systems, simplifying the learning curve as consumers gradu- ally adopt new payments habits.
2 Payment card networks will remain central
with tokenization and other m-payment services. Visa, MasterCard, Discover and American Express all announced tokenization services within the last year or so, marking the first big across-the-board innova- tion for the card networks in 20 years. Based on EMVCo’s Payment Tokenization and Specification Technical Standard, tokenization replaces traditional card account numbers with unique “tokens” that are used as proxies to complete transactions online, in apps or at the POS, protecting sensitive data from exposure. These services are becoming a vital approach to providing secure, streamlined m-pay- ments for many providers.
3PayPal has massive potential.
With its huge user base of 169 million active ac- counts, its international reach, its open platform accessible via APIs and the technology coming from its Braintree and Paydiant units, PayPal arguably has the power to become the biggest mobile wallet of them all for both financial institutions and retailers.
4Banks will fight to keep customers close.
In an era of rising fraud risk and expanding options, study after study shows consumers still trust banks more than any other potential payments provider, though their edge could slowly erode. Banks stayed
and brands intact within the app (by agreeing in the U.S. to pay a fee of 15 cents for every $100 spent). Millennials are banks’ biggest growth sector and banks that don’t offer them a good mobile wallet option will lose customers in droves. But banks still have plenty of opportunity to cement their roles with loyal consumers by developing their own bank-branded mobile wallets. This could be the killer play for banks.
Buy buttons will be big.
Buy buttons to initiate payments within social media, texts, email and the Web will proliferate, causing the e-commerce and in-app purchase process to begin to blur with the POS experience, as consumers gradually shift to more of an omnichannel environment for purchases, as well as shopping.
6mCX’s CurrentC could be the wild card that finds success in the end.
It lost ground by not getting its wallet out faster, partly because it overreached with the original idea of getting around card networks and interchange by quickly inventing a new payments approach. But if CurrentC provides an API giving participating mer- chants an easy way to support in-app payments that consumers intuitively grasp, it could sail forward. CurrentC—or another startup—also could create breakthroughs by enabling bank-branded wallet acceptance within merchants’ apps.
Richard Crone is a principal with Crone Consulting LLC. He works with banks and merchants
on mobile payments strategy.
5
paybefore.com 69