Second Menu
Payments Cards & MobilePayments Cards and Mobile

FEATURES

Cover story - The data breach dilemma

In the wake of high-profile retailer breaches, how is the payment industry responding? by Victoria Conroy The year 2013 looks likely to be defined as the year of the data breach, as fraudsters evolve their methods into widescale attacks on payment systems utilising several methods. In the last issue of PCM, we looked at the ramifications spreading from the high-profile data breaches at US retailers Target and others like Neiman Marcus. In the case of Target, around 40 million credit and debit card…

Interchange - A level playing field?

While much of the debate around European card regulation focuses on Visa and MasterCard, how will three-party schemes fare under proposed legislation? by Victoria Conroy The July 2013 publication of European Commission (EC) draft legislation concerning card payments and interchange has had many ongoing ramifications for payment networks in Europe. Joel van Arsdale, a partner at consultancy First Annapolis, explained at the time: “Three-party schemes are excluded from the scope of provisions on interchange caps and provisions on separation of payment cards…

Biometrics breakthrough

Cutting-edge Biometrics technology is heralding security initiatives that will bolster the fight against fraud. by Victoria Conroy With incidents of security breaches and fraud increases, the payment industry is paying close attention to secure identification and personal verification methods – could 2014 be the year that biometric payment technology takes off? Only a decade ago, ideas such as fingerprint scanning, iris scanning and so on would have come straight out of science fiction, but now they are very much a reality. The appeal…

MOBILE PAYMENTS

Fed study documents rise of mobile banking

The US Federal Reserve has released findings from its annual study of mobile phone use for consumer financial services, including rising usage of smartphones for banking, payments and personal financial management. According to the study, 87% of the US adult population has a mobile phone, of which 61% are internet-enabled smartphones. As such, their ubiquity is changing the way consumers access financial services. Around 33% of all mobile phone owners have used mobile banking in the past 12 months, up from…

UK’s PayM mobile payments service launched

UK person-to-person (P2P) mobile payments service PayM has been launched, enabling customers of participating banks and building societies to register their mobile numbers and link them to their current accounts to make P2P payments. PayM was developed and built under remit from the UK Payments Council in conjunction with UK banks. Customers can now register with the service with banks including Bank of Scotland, Barclays, Cumberland Building Society, Halifax, HSBC, Lloyds Bank, Santander and TSB. Other financial institutions such as RBS,…

Google integrates Wallet into Google Glasses

Google is working on a feature that would add its Wallet mobile payments system to Glass’ bag of voice-controlled tricks, allowing users to send money to friends simply by uttering “send money.” Google integrates Walletinto Google Glasses Wallet transfers are already available for Gmail users, and would presumably entail Google’s standard Wallet transaction fee, which is currently nil assuming you already have cash loaded into your Wallet account. If you need to use a credit card – which would seem to…

US firms deposit $1 billion through Wells Fargo app

US businesses have deposited more than $1 billion through the Wells Fargo mobile app since its launch in late 2011. The free CEO Mobile Deposit service enables businesses to scan and deposit cheques and money orders using their iPhones and iPads. Remote deposit capture has become increasingly popular in the 10 years since Check 21 legislation came into place. According to data compiled by consultancy Celent, around 20 million consumers used mobile remote deposit capture in 2013 compared with 10.9 million…

MasterCard and Syniverse join forces for m-payment security

According to research from consultancy Frost & Sullivan, the global market for trusted service management (TSM) has not quite lived up to expectations with the low level of NFC commercial deployments in the transportation sector. However, the banking and finance sectors are making up for this with the launch of mobile payment solutions that require the support of TSM platforms. These verticals are expected to implement pilot and even concrete TSM projects in 2014 and account for 80.1% of the total number…

CONTACTLESS

NFC-enabled phone shipments to soar fourfold in next five years

Global shipments of mobile phones equipped with NFC technology will surge by more than a factor of four from 2013 to 2018, reaching 1.2 billion units, according to IHS Technology. Worldwide shipments of NFC-enabled mobile phones climbed to 275 million units in 2013, up 128% from 120 million in 2012. According…

Europe embraces contactless purchases in 2013

Throughout 2013 Visa cardholders used their contactless cards to make more than 94.3 million purchases in the UK compared to just under 25 million contactless purchases in 2012.  Contactless purchases were not just up in the UK but across the whole of Europe, with Visa cards used to make a staggering…

Asian telcos form NFC alliance

Four Asian telcos have formed an NFC alliance to ensure cross-border compatibility of mobile payment systems and branding. Japan’s KDDI, Chunghwa Telecom (Taiwan), Hong Kong Telecommunication and Korea’s SK Planet say the Asia NFC Alliance will jointly review standardisation of NFC tag specifications, common brand marks and NFC platforms and…

Orange Cash NFC mobile payment service launches in Strasbourg and…

French telco Orange and Visa Europe have announced the commercial launch of Orange Cash in Caen and Strasbourg, two of the cities with the highest use of contactless payments in France. With the launch Orange becomes the first mobile network operator in France to offer mobile contactless payments to its…

German telcos and MasterCard join forces for mobile payments

MasterCard has announced a collaboration between German telcos Deutsche Telekom, Telefónica Deutschland, Vodafone and TREVICA to create a new mobile platform and accelerate the development of mobile payments in Germany. The three mobile operators represent 80% of mobile customers in Germany. Instead of connecting to individual mobile operators, issuing banks can…

ISSUING & ACQUIRING

EU legislation could increase cost of card payments

UK consumers are concerned that draft legislation currently being discussed by the EU over interchange will make it more expensive to pay by card, impacting upon the growing trend for online shopping.  Research into the views of European consumers across 13 European countries found that 72% of UK respondents believe proposals to cap interchange fees and introduce other measures impacting on…

Merchant Payment Ecosystem 2014 points to need for collaboration

The 7th annual Merchant Payment Ecosystem (MPE) event, held in Berlin between 18th-20th February, attracted over 520 participants, 94 presenters, 29 sponsors and 24 exhibitors. The main theme of this year’s event was the continuing commoditisation of acquiring, which is leading to value-added services becoming a key success factor. Many speakers pointed to the convergence of telcos, mobile and payments, which…

Bain and Advent in exclusive talks to buy card payment…

Private equity firms Advent International and Bain Capital have entered exclusive talks to buy Danish card payment services company Nets Holding for more than €2 billion ($2.8 billion), two people familiar with the matter said. Advent and Bain, which jointly own British payment processing company WorldPay and have teamed up for the Nets bid with Danish state-owned pension fund ATP, beat…

Competition for new customers drives growth in European cards market

Competition among banks to gain new customers, and campaigns to replace low-value cash transactions with card payments, have driven significant levels of card issuance and rising card usage in Europe, according to a new Retail Banking Research (RBR) report. A 20% rise in the number of cards in circulation between 2008 and 2012 (to reach 1.4 billion) was by far surpassed…

OP-Pohjola selects Equens as card processing partner

European payment processor Equens has been selected by Finland’s OP-Pohjola Group as its new card processing partner under a long-term contract for card services. The first card transactions will be processed in the fourth quarter of 2014. The two entities already had an agreement for the processing of SEPA payments as well as their regular cross-border euro payments since 2008. With…

RISK & COMPLIANCE

Mass card reissuance underway after Target breach

The major US card issuers have undertaken a wave of mass credit and debit card reissuance following the Target data breach in late 2013 which affected around 40 million credit and debit accounts and up to 110 million consumers. The sheer scale of the Target breach has led issuers to flip their fraud prevention strategies upside down by choosing mass reissuance…

POS TERMINALS

Making mPOS work in Europe

European mPOS participants should avoid Square copycat strategies and instead use comprehensive strategies to carefully target profitable and growing merchants,…

Barclaycard enters mPOS fray

Barclaycard is jumping onto the mPOS bandwagon with its launch of an app and card reader. Aimed at smaller merchants…

Kalixa Group expands payment services into the Americas

Kalixa Group has expanded into the North and Latin American markets, with new offices in New York, US, and Sao…

Handelsbanken chooses VeriFone for mPOS entry

Handelsbanken is entering the mPOS fray by offering VeriFone-built chip and PIN card readers to Sweden’s micro merchants. Under a…

Roam adds Chip and PIN acceptance to mPOS

Roam, an Ingenico company and mobile commerce platform provider, has expanded its mPOS solutions to include chip and PIN acceptance…

E-COMMERCE

Visa Europe highlights online spending growth

UK consumers’ preference for electronic payments continued to increase in 2013 as Visa Europe’s annual results showed that spending with…

Record number of iDEAL payments in 2013

The iDEAL online payment system continues to gain popularity with users, with figures showing that in 2013, iDEAL was used…

Adyen announces 40% growth in 2013

Adyen, a global provider of international and omnichannel payment solutions, processed more than $14 billion in payments transactions in 2013…

Google buys sound-based online authentication start-up SlickLogin

Google has acquired SlickLogin, an Israeli start-up which is aiming to use sound-based online authentication to replace passwords. Websites using…

ECB backs guide for better internet payments security

The European Central Bank (ECB) has given its backing to a new guide for assessing the security of internet payments…

PRODUCTS AND CONTRACTS

Barnes International points to test tools growth

Barnes International has reported an increase in activity to US companies involved in the manufacture, personalisation and issuance of EMV and non-EMV payment cards in the last 12 months.  Barnes solutions include magnetic stripe analysers and EMV chip test tools which are used by card manufacturers and test laboratories to ensure the development and manufacture of high-quality cards which meet ISO…

Ukash launches instant issue mobile-enabled card

Online cash payments provider Ukash has launched a general purpose reloadable (GPR) prepaid card, supported by a mobile app available on Android and iOS platforms, which enables users to check transactions and balances as well as top up cards as soon as they’ve exchanged cash for a Ukash code. Cash can also be loaded directly onto the Ukash prepaid MasterCard-branded card…

Agilent and FIME deliver advanced test tools for m-payments

Agilent Technologies and FIME, an advanced secure-chip testing provider, have announced an agreement to work together to deliver testing solutions to the payments and telco markets.  The advancement of innovative tools to test and certify secure-chip mobile payment technology will be a key priority for the two organisations. This work will capitalise on the combined knowledge of FIME’s established expertise in…

Greggs launches m-payment and loyalty app

The UK’s sizable percentage of pie-eaters will be heartened by the news that bakery chain Greggs has officially launched its new ‘Greggs Rewards’ mobile payment app, a digital loyalty scheme that eliminates the need for customers to carry a separate loyalty card or their wallet when they shop. By registering for a Greggs Rewards account via the app or online, customers…

INSIDE Secure launches mobile security offer

INSIDE Secure has announced the availability of second-generation VaultSEcure secure element, a mobile security chip. It incorporates built-in applications to address security vulnerabilities in enterprise and entertainment markets, such as DAR (Data-at-Rest) protection, VPN (Virtual Private Network), DRM (Digital Rights Management) and others. The VaultSEcure device contains hardware, operating system and built-in applications, eliminating the need for OEMs and reference platform providers…

Payments Cards and Mobile