Mobile Money and Mobile Payments – Mobile Financial Services or FinTech Intelligence platform usually allows various users to access its services. Service access channels are multiple and wide range like Web, App, POS, USSD, NFC, QR Codes and SMS etc. On Mobile payments, the security for our money which is in the form of bits and bytes is needed at a greater level. The security has to be robust, high security but a frictionless for user experience.

Mobile Payments – Speed & Security

Against escalating security threats on mobile payments, empowerment of merchants, acquirers, and service providers with new commerce opportunities and experiences in store and protection is the highest priority or should be the highest priority for any mobile payment solution system. Banks may not be able to keep up as they lack the ‘culture or mindset’. Money needs to follow you and not the other way round like the traditional brick and mortar channels.

Where do we go when the era of Central Banking dies? Because it’s about to die — by decentralizing organisms that are dynamically scalable and software that can be modified. I am very confident that software systems can and do adoption jobs dynamically. As mobile payment systems head toward primetime, we could be witnessing the beginning of a profound shift in payment culture.

As mobile payments evolve, technology providers and financial institutions are working on ways to enhance security and boost customer trust. Precautions include adding new layers of fraud protection, such as tokenisations, where transactions can be completed without sharing sensitive data like a credit card number and its expiration date.

Banking Services not always from Banks

In the changing banking (Led by non-Bank financial service providers) landscape, whilst banks are trying and in with full frustration enforcing their financial husbandry, theyideas-1 are merely making an effort to engage on how to deal with the impact of FinTechs. Kodak, (was) the pioneer in photography that sold the first consumer camera in the nineteenth century and ignorantly blindfolded over adaption to the digital age before filing for bankruptcy in 2012, This ‘Kodak moment’ would come and hit banks in the next 10 -12 years.

FinTech & the majority of them fall under one of the two categories – Payments or Lending. Given that these have been the strongholds of financial services institutions, long term sustenance of the institution would depend on addressing these twin areas effectively. Having their focus on the long term stability of the institution, FinTechs increasingly need to take steps to evaluate the following. Convergence is the new language of money.

More than a billion people in emerging and developing markets have cell phones but no bank accounts. Many low-income people store and transfer money using informal networks, but these have high transaction costs and are prone to theft.

Mobile Money is not Mobile Payments

Mobile money is beginning to fill this gap by offering financial services over mobile phones, from simple person-to-person transfers to more complex banking services. To date, there have been more than 100 mobile-money deployments in emerging markets; at least 84 of them originated in the past three years. In a rapidly changing environment, telecommunications operators are facing the challenges of growth, operational efficiency, convergence, technology and increasing regulatory pressures.

Failure to secure sensitive information can cause major damage to the service provider’s organization in terms of financial fraud, identity theft, legal regulations, loss of consumer confidence, etc. Security controls that can be employed in making a payment handling application more robust and frustrate the breakers at the hardware level before reaching the application level.

Points to Note:

All credits if any remains on the original contributor only. This post came out of my presentation mace in South Africa to Mobile Money operators in Africa. In the presentation, I covered all the basics around Mobile Financial services and Mobile Money and the importance of the quality network (Agents, business and distribution). In the next upcoming post will talk about implementation, usage and practice experience for markets.

Books + Other readings Referred

  • Research through open internet, news portals, white papers and imparted knowledge via live conferences & lectures.
  • Lab and hands-on experience of  @AILabPage (Self-taught learners group) members.

Feedback & Further Question

Do you have any questions about AI, Machine Learning, Telecom, Data Science or Big Data Analytics? Leave a question in a comment section or ask via email. Will try best to answer it.

Sign-tConclusion – What makes a digital payment innovation fly or die. Given the change of pace over the last five years, banks and now FinTech’s may feel they need to decide between complying or competing, as they explore new technologies that meet the challenges of digitalisation and changing consumer behaviour. Open banking services and developer-friendly APIs which are basic or underlying principals of BaaS and BaaP. One of the biggest concerns relating to security in e-commerce applications is the use of correct, reliable and secure payment method i.e use of a card, Internet banking, mobile payments or instant payments.

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Posted by V Sharma

A Technology Specialist boasting 22+ years of exposure to Fintech, Insuretech, and Investtech with proficiency in Data Science, Advanced Analytics, AI (Machine Learning, Neural Networks, Deep Learning), and Blockchain (Trust Assessment, Tokenization, Digital Assets). Demonstrated effectiveness in Mobile Financial Services (Cross Border Remittances, Mobile Money, Mobile Banking, Payments), IT Service Management, Software Engineering, and Mobile Telecom (Mobile Data, Billing, Prepaid Charging Services). Proven success in launching start-ups and new business units - domestically and internationally - with hands-on exposure to engineering and business strategy. "A fervent Physics enthusiast with a self-proclaimed avocation for photography" in my spare time.

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