Mobile Payments – Mobile payments platform usually allows various users to access services via multiple channels like Web, App, POS, USSD, NFC, QR Codes and SMS etc.
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 highest priority or should be 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 decentralize 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, they are merely making any 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 blind folded 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 & 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 nobank 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 the 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.
Conclusion – 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 secured payment method i.e use of card, Internet banking, mobile payments or instant payments.
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