Page 48 - Pay Magazine s2014
P. 48

finance & strategy
M-Payments’ New Tools: The Technology + Services Reshaping Payments Security
Payments industry participants at all levels, including merchants, must be mindful of evolving fraud tactics and employ a dynamic and multilayered fraud prevention platform enabling them to quickly and easily adjust their methods if fraud tactics shift.
—John Dancu, IDology
impossible to eliminate them, Abraham believes. “But mobile provides such a richer and more secure environment for payments that its eventual adoption is in- evitable, and we’ve only scratched the surface of what’s possible,” he says.
Power Trio: EMV, Biometrics, Tokenization
To be sure, the vast majority of card payments are still conducted with static, physical cards, and that’s not changing in the near term, experts agree. But even now, in the early days of broad con- sumer adoption of mobile pay- ments with the relatively recent arrival of services like Apple Pay, Android Pay and Samsung Pay, mobile payments already are improving the security and conve- nience of payments for consumers contends Bob Reany, senior vice president of identity solutions for MasterCard’s Enterprise Security Solutions unit. M-payments are providing new, easier ways to
pay with devices and wearables, making payments safer than cash in nearly every use case, Reany says. Mobile devices by their nature provide a vast number of ways to verify that transactions are legitimate, which is helping build consumer con dence in m-payments. “Mobile payments security features include positive identi cation of the device itself, correlating the user’s location to a reasonable area, ensuring that the device hasn’t been compromised and, most importantly, providing a safe and simple way to con rm the
customer’s identity with methods such as biometrics authentication through  ngerprint, voice and facial recognition,” he explains.
One major force responsible
that’s helping to drive m-payments is the emergence within the last couple of years of tokenization for card payments, which the payments industry has embraced as a robust, secure way to handle payment
card data in the mobile environ- ment. With tokenization, actual
card account numbers are re- placed with a unique digital identi-  er that’s useless to fraudsters if it’s intercepted. Apple Pay was the  rst m-payments service to broadly deploy tokenization with its U.S. launch in October 2014, using speci cations developed by EMVCo. and approved for use by the major card networks to protect card- holder data. Android Pay and Samsung Pay use tokenization
for their m-payments services,
as do Capital One and Canada’s RBC, which were among the  rst banks to develop proprietary m-payments apps using host
card emulation (HCE).
Combined with EMV—which creates a unique cryptograph for each card transaction occurring at the POS or via a mobile device— tokenization is a  exible and robust way to handle payment card data, security experts believe. Along
with MasterCard, American Express and Discover, Visa voiced its sup- port for tokenization in m-pay- ments in 2014, and in October 2015 announced it’s taking token
46


































































































   46   47   48   49   50