PaymentIntelligenceIf we trust the data from various data factories or from data science labs what we will find is this. We are living in a world where the number of SIM cards are far more compared to the number of toothbrushes. On the African continent, this statement is true by far. Some insurance companies are taking this truth seriously and building business plans and cases. Imagine having to mouth insurance where a special toothbrush with tracking ability tracks and collect data about the mouth. The collected data will help in the decision on your mouth & teeth insurance policy.


Are We Giving Up Privacy

In all this where are the privacy and security going now? Security is an urgent issue for every business and individual; as cybercriminals continue to gain traction, the effectiveness of every secured solution expires every day. The open/public cloud-based customer base is now much higher than closed/dedicated infra based. Reliability is getting more important than visibility. High-speed, reliable connectivity underpins innovation, and the rollout of new networks is an important enabler for start-ups and the advancement of digital services. Repartition of the payment market is not far off and may be very near.


Is it about swapping the technology-by-technology or swapping people who were previously dealing with technology and business to bring innovation with security? Logging with Application passwords, logging with someone else password and how to detect as behaviour is always different when one logs in with their own credentials and other credentials.

This small piece of artificial intelligence packed in one simple API, can setup global standards. TMT – Telecom, Media, and Technology can perform better on device ids by using device hardware and software information as another method of security. Creating a simple rule of servicing the service request from queuing to tokenisations.


PaymentIntelligence and Digital Wallets

The digital wallet revolution has not have lived up to its expectations yet. According to Gallup, just 13% of smartphone owners have a digital wallet app, while the majority of those who do have an app (76%), rarely use it. Credit-Score-Meter

Why: may be innovation was not done with security or innovation was not secure enough or simply innovation is the only thing which was talked about and no discussion on how useful and secured it is.

In my first post of this year  2017 Year of AI & Digital Payments, I mentioned about digital payments and needs now in here I am trying to be specific about how much innovation. Today payments, banking, banks and mobile money and telecom operators face a plethora of challenges.

Apart from wafer-thin profit margins and rapid new innovators and entrants in market focus more issues pertaining to quality of service (QoS) and quality of experience (QoE) but giving equal significant to security & privacy is almost missing. The focus has shifted to ensuring optimal new solutions and experience for subscribers and everything else is being parked at the backyard.


Privacy – Only a Myth Now

Against escalating security threats on mobile payments, empowerment of merchants, acquirers, and service providers with new commerce opportunities and experiences in store and protection should be the highest priority or should be the highest priority for any mobile/FinTech/banking payment solution system. Where do we go when the era of Central Banking dies? And the ministry of innovation takes over because the era of too much regulation is about to die — by decentralizing organisms that are dynamically scalable and software that can be modified.

seclabwordle2Software 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. That may be disheartening for those who are always looking for backdoor entry but most of who are called as innovators, guardians or saviours of the industry there’s always a silver lining if not gold.


Mobile Payments and User Privacy

U.S. alone mobile payments volume will increase to $503 billion by 2020 and will be used by 56% of the consumer population during that year this is as per Business Insider’s forecasting. In the Meantime Sweden, Singapore, the Netherlands, France, Canada, Belgium and the U.K. are already on their way to becoming LessCash to CashLess societies. India, Australia, Brazil, and much of African countries are also following the suit.

Innovation Pic.png

In Digital wallets, security plays (Hardware based on BaaP is better than software on BaaS based security) pivotal role whereby should be receiving a transaction that includes a transaction timestamp and, on the basis of the transaction timestamp and the bucket timestamp, determine a particular initial-bucket in which to store the transaction.

While innovating and actively building the infrastructure for the payment solution in which I as consumer don’t need to bother of thinking about currency I am making payment into, currency I have on my payment instrument, country I belong to the country I am standing, who is my service provider, whom I am paying, what time zone, what language and for what I am making and in last how much I am paying.


PaymentIntelligence – A Combination of Privacy and Payment Security

Experts unanimously can consider this factor as influencing key factor for the market development in the medium and long term. Including the segment of mobile payments. Of course, there are and there will be sticking points (Hope you don’t think I am dreaming in my dreams). For example, prescribed in the Law “On National Payment System” requirements to carry out almost all payments, including wages, shopping, micro/macro payments, cross the border or borderless payments, vat refund, pensions and benefits. That was the beginning of cryptocurrencies.

hand pushing innovation button on a touch screen interfaceTransaction velocity is for counting for fraud detection. Mobile payments are moving away from proprietary development to become global services. Indian market is warming up to digital payments with a big bang approach and creating lots of confusions for the consumer but at the same time exciting time for Payments industry professionals and few consumers. Recently there was a headline about What’s app Pay as one more way to pay Cash, Cards, Wallets, P2P Methods like Visa Direct, Mastercard Moneysend, IMPS, UPI, BHIM, True-caller pay, Bharat QR, Aadhaar pay, Netbanking, Samsung Pay and upcoming Android and Apple Pay.

No talks about security & privacy. With nearly 200 million people between the ages of 15 and 24, Africa has the youngest population in the world. This figure is set to double by 2025, ushering in a new generation with the potential to understand and solve pressing social and economic challenges by harnessing the power of digital innovation. How ready Africa is to adopt digitisations in many day-to-day life needs.


Apple Pay – A Tweaked NFC Solution

Apple Pay – The entrant of the late year 2014 (Remember it manage to sell 10 million handsets in the first 3 days of launch). Launching Apple Pay (NFC Solution) from a technology perspective was neither a new offering nor a game changer. mpay

Apple pay started in late 2014 with its proprietary handset iPhone-6 with IOS-8 that utilises an embedded secure element (eSE). Android Pay solution appears to be a scheme-hosted HCE service with Android branding.

Microsoft Payments or may be known as MS Pay may join Apple, Android, Samsung in pay war/jungle. Windows 10 for phones support Host Card Emulation, licensing makes it official.

Microsoft is looking for licensing to be a money transmitter suggesting that the company is taking next steps to develop its own mobile payments platform akin to Android Pay, Apple Pay and Samsung Pay. Some rumours are breakthrough has been achieved in Idaho states by getting a license.

Microsoft announced that its handset would be supporting HCE. HCE a  simple method of transmitting credit card information without relying on a Secure Element embedded in a SIM. Newer Android phones use HCE to transmit NFC signals to terminals, and the benefits of the scheme mean that third-party developers can build NFC functions into their apps. The elimination of the Secure Element requirement makes the payment platform SIM independent, and hence HCE threatens & upset carriers.


PaymentIntelligence –  Artficial Intelligence + Data Science

Artificial intelligence and machine learning with security as the prime front end, middleware and backend idea will fire the event of any financial transaction and will explore the current implementations of many forms to secure.smartphone-mobile-security

AI in financial services, can focus on consumer and corporate applications and can explore the near future of all transactions. Artificial intelligence in its many forms can be predictive, analytics, machine learning, natural language processing, robotic process automation, chatbots and more needs to come in to play to help global banking institute (Not necessarily driven or owned by the bank).

Banking AI and machine learning leaders will drive the next generation of financial apps and platforms that will change the face of banking and FinTech. Fintech will move with global implications. Info security being the hotbed of innovation, and FinTech, banks and credit unions are at the forefront of implementing new concepts that truly transform the banking experience (Maybe did not come from banks at all). Joining this race for a special tour of banking innovation and transformation in action will be worth to watch.


Security & Privacy in the Digital Age

To serve and survive in the digital age basic need is to find out how to infuse the digital market with brand and culture. Critical steps will be required to take both internal and external to lead the way to digital success. pp

Teaming up with Training, Education, Innovation, Info Security, Artificial Intelligence, Machine learning process and Technology. From community banks to credit unions to FinTech, no matter the size or customer base being served, today’s financial institutions are embracing some of the most innovative technology on the market to keep their customers happy and ensure experiences are frictionless and secure. Info security will lead to examples of innovation in technology, self-service, and improved customer experience. In addition, bank management will be on hand to answer questions and give. AI will help machines to learn the key ingredients to develop and execute a winning Digital Strategy within the financial technology ecosystem. Having AI and machines does not mean that we will be able to get rid of basic resources they would still be needed for below primary reasons.

  • People – People roles must exist in your organisation to effectively design and execute strategies.
  • Process – Machine changes need to take place at the process level.
  • Technology – Designing technology and solution architecture.

A payment gateway is your doorway to making sales online. What is more important Innovation or security, My own assumption as a technologist in financial domain I would go for security first before any innovation. Innovation is the key to stay relevant in the market but security is the golden key to staying alive in the market. A Payment gateway will allow you to charge your customer’s credit/debit card with the purchase he/she makes online but is it secure enough for your customer. ISO released new standards 12812 for mobile banking, how much change will it bring for Mobile Banking security, let’s wait for it.


Points to Note:

All credits if any remains on the original contributor only. We have covered all basics around mobile payments data security models and the importance of privacy. 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, notes made at knowledge sharing sessions and from 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, Data billing/charging, 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 – One way or another, the development, innovations, strategic creativity in payments system remains today’s prime target. Breaking down digital wallets and mobile payments. The idea of a digital wallet, which is basically just a digital version of a physical wallet, isn’t new. In fact, David Chaum, an American cryptographer, created digital cash all the way back in 1983. “World Wide Pay” or “Universal Pay” can kill banks and lots of other institutions. Some Payment Processors do provide direct merchant services, but most companies focus on processing payments.

Experts agree that mobile-driven loyalty will be critical in garnering consumer adoption of mobile payments through apps, USSD, SMS, NFC, GPRS or QR Code. Fortunately, the rest of the payment industry players who were not part of the initial painful experiments have the unique opportunity to learn from the growing pains and avoid making the same costly mistakes as one mistake could make them miss the opportunity to convert an occasional customer into a regular loyal customer.


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Posted by V Sharma

Technology specialist in Financial Technology(FinTech), Photography, Artificial Intelligence. Mobile Financial Services (Cross Border Remittances, Mobile Money, Mobile Banking, Mobile Payments), Data Science, IT Service Management, Machine Learning, Neural Networks and Deep Learning techniques. Mobile Data and Billing & Prepaid Charging Services (IN, OCS & CVBS) with over 15 years experience. Led start ups & new business units successfully at local and international levels with Hands-on Engineering & Business Strategy.


  1. This is excellent page and lots of information. We agree security is more important



  2. This post is too informative



  3. Soumen Fintech April 8, 2017 at 08:49

    I agree 100% on …. To serve and survive in digital age basic need is to find out how to infuse the digital market with brand and culture



  4. This post has too much information , I must say thank you for such an excellent resource



  5. Simply awesome!!



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