Abstract – If 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 number of SIM cards are far more compare to the number of toothbrushes and on African continent this statement is true by far. Some insurance companies are taking this truth seriously and building serious business plans and cases. Imagine to have mouth insurance where a special toothbrush with tracking ability tracks and collect data about mouth to decide and help you on your mouth & teeth insurance policy. Where is 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. Open/public cloud based customer base are now much higher then 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.
Introduction – 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 some one else password and how to detect as behavior is always different when one logs in with their own credentials and others 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 simple rule of servicing the service request from queuing to tokenisations. The digital wallet revolution has not have lived up to its expectations yet. According to Gallup, just 13 percent of smartphone owners have a digital wallet app, while the majority of those who do have an app (76 percent), rarely use it. Why: may be innovation was not done with security or innovation was not secured enough or simply innovation is the only thing which was talked about and no discussion on how useful and secured it is.
Main Story – In my first post of this year 2017 Year of 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 backyard. 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 highest priority for any mobile/fintech/banking payment solution system. Where do we go when the era of Central Banking dies? And ministry of innovation takes over, because era of too much regulation is about to die — by decentralize organisms that are dynamically scalable and software that can be modified.
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. That may be disheartening for those who are always looking for backdoor entry but most of who are called as innovators, guardians or saviors of the industry there’s always a silver lining if not gold. U.S. alone mobile payments volume will increase to $503 billion by 2020 and will be used by 56 percent 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.
In Digital wallets, security plays (Hardware based on BaaP is better then software on BaaS based security) pivotal role whereby should 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 think about currency I am making payment into, currency I have on my payment instrument, country I belongs to 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. 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 border or border less payments, vat refund, pensions and benefits. That was the beginning of crypto currencies.
Transaction 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 big bang approach and creating lots of confusions for consumer but at the same time exciting time for Payments industry professionals and few consumers. Recently there was a headline about Whatsapp Pay as one more way to pay Cash, Cards, Wallets, P2P Methods like Visa Direct, Mastercard Moneysend, IMPS, UPI, BHIM, Truecaller 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 digitizations in many day-to-day life needs.
Apple Pay – The entrant of late year 2014 (Remember it manage to sell 10 million handsets in first 3 days of launch). Launching Apple Pay (NFC Solution) from a technology prospective was neither a new offering nor a game changer. 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 supports 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 break through has been achieved in Idaho states by getting license.
Microsoft announced that its hand set, 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.
Artificial intelligence and machine learning with security as 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. 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, analytic, 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 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 forefront of implementing new concepts that truly transform the banking experience (May not com from banks at all). Joining this race for special tour of banking innovation and transformation in action will be worth to watch.
To serve and survive in 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. 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 examples of innovative 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 means 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 organization to effectively design and execute strategies.
- Process – Machine changes need to take place at the process level.
- Technology – Designing technology and solution architecture.
Conclusion – 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.
A payment gateway is your doorway to making sales online. What is more important Innovation or security, My own assumption as technologist in financial domain I would go for security first before any innovation. Innovation is the key to stay relevant in market but security is the golden key to stay alive in 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 secured enough for your customer. ISO released new standards 12812 for mobile banking, how much change will it bring for Mobile Banking security , lets wait for it.
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