Mobile Payments Today: July's top reads

Mobile Payments Today: July's top reads

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Digital security was a major talking point on Mobile Payments Today in July as readers propelled two separate blog posts about tokenization and biometrics into the top 5 most-read pieces of content for the month. 

David Worthington, vice president of payments for Rambus, wrote a piece about securing real-time payments with tokenization. 

"By replacing unique sensitive information or data with a context-specific proxy, tokenization can significantly reduce the risk and impact of account-based fraud and foster safe, secure real-time payment initiatives across the world," Worthington wrote. 

Steve Cook, a biometrics and fintech consultant, nabbed the top spot in July with a blog post about biometrics' link with personal security. 

"The combination of mobile banking and biometric security in our smart devices will enable consumers to have more confidence regarding their personal security and will be far safer than it has ever been," Cook wrote.

Rounding out the top five most-read stories on Mobile Payments Today in July were pieces about what U.S. retailers can learn from China about mobile payments; an article from the ICX Summit about Carnival Cruise's wearable; and a blog post examining what comes next for mobile banking as it surges in popularity. 

5. "What can US retailers learn from China about mobile payments?": The success in China is largely driven by consumers' adoption of mobile wallets like Alipay and WeChat/Ten Pay, which make up the majority of the mobile payment market.

When it comes to mobile payments, it's no secret that China is in the lead globally.  In 2016, mobile payments totaled $5.5 trillion in that country, according to iResearch Consulting Group. In comparison, Forrester Research estimated that the U.S.'s mobile payments market was $112 billion – clearly a significant difference.

The success in China is largely driven by consumers' adoption of mobile wallets like Alipay and WeChat/Ten Pay, which make up the majority of the mobile payment market. While there are some mobile wallets in use here in the U.S., they are not nearly as widely adopted. 

Getting consumers to change payment behaviors can be challenging, but people almost always have their mobile phones with them. With the right motivation, merchants can capitalize on the growth opportunity and cost savings that mobile payments present.   

So, what can U.S. retailers learn from China's success in mobile payments, and how can they can apply these learnings to their businesses?

Read the rest of the article.

4. "How a wearable changed the customer experience for Carnival Cruise": John Padgett, Carnival Cruise chief experience and innovation officer, outlined the company’s digital and guest-centric strategy in a keynote at the recent ICX Summit conference.

Imagine directing innovation strategy and technology for what's viewed as the world's largest experience enterprise. That's exactly the role of John Padgett, chief experience and innovation officer, global experience and innovation at Carnival Cruise.

Carnival, the world's largest travel company when it comes to cruise lines, operates more than 100 ships under nine brands that travel to 740 destinations. Its interactive customer experience for each guest begins the moment a trip is booked and ends once the guest departs a ship.

In Padgett's view ICX is exactly what a vacation should be all about.

"The letters say it all. The I is for interactive and interaction with the consumer. The C is for consumer and the consumer is everything, and the X is for band and pass [technology]," he shared during his keynote talk at the recent ICX Summit held in Dallas in mid-June.

Read the rest of the article.

3. "Securing real-time payments with tokenization": For banks, direct debit fraud represents a bigger financial risk than card fraud. In particular, growing momentum for real-time payment schemes across the world is creating huge opportunities for fraudsters and placing increasing pressure on banks and clearing houses, who now have only seconds instead of days to identify fraudulent transactions.

For banks, direct debit (ACH) fraud represents a bigger financial risk than card fraud. In particular, growing momentum for real-time payment schemes across the world is creating huge opportunities for fraudsters and placing increasing pressure on banks and clearing houses, who now have only seconds instead of days to identify fraudulent transactions.

There are various security approaches available to banks in the fight against fraud, but tokenization has already proved successful in protecting in-store and online card payments, with all the major payment systems, digital wallets and original equipment manufacturers adopting the technology.

By replacing unique sensitive information or data with a context-specific proxy, tokenization can significantly reduce the risk and impact of account-based fraud and foster safe, secure real-time payment initiatives across the world.

Read the rest of the article.

2. "With use surging, what comes next for mobile banking?": What areas of innovation could shape the channel, and how can financial institutions keep users engaged and satisfied?

Consumer use of mobile banking applications is accelerating at a rapid pace. In the U.S., nearly one-third of people (31 percent) use mobile banking more than any other app on their smartphone. Only logging onto social media (55 percent) and checking the weather (33 percent) are more common mobile activities.

This is according to the 2018 Mobile Banking Study from Citi, which revealed that 46 percent of U.S. consumers have increased their use of mobile banking in the past year. Eight out of 10 people (81 percent) now use their phone to manage their money on nine days in every month, on average.

Nine out of 10 mobile banking users (91 percent) said they preferred using apps over going into a branch, while 68 percent of millennials said they could see their smartphone replacing their physical wallet.

Alice Milligan, chief digital client experience officer for U.S. consumer banking at Citi, said: "Mobile banking use is skyrocketing as more consumers experience the benefits of greater convenience, speed and financial insights driven by new app features and upgrades.

Read the rest of the article.

1. "Biometrics: Are they becoming the nirvana of personal security?": The combination of mobile banking and biometric security in our smart devices will enable consumers to have more confidence regarding their personal security and will be far safer than it has ever been.

By 2020, nearly all smart devices including mobile phones, tablets and wearables will have some form of biometric security enablement. By the same time, personal banking through mobile apps will also overtake online banking in the U.K.

According to a recent report from Goode Intelligence, by 2020 1.9 billion bank customers will adopt biometrics for a variety of financial services, including ATM cash withdrawals, proving identity for digital on-boarding, accessing digital bank services through IoT devices and mobile bank app authentication. Biometric authentication for banking purposes is going to generate $4.8 billion in revenue by 2023.

In the U.K., over 22 million people managed their current account on their phone last year, according to a report by CACI. By 2023, they have predicted that around 35 million people, or 72 percent, of the U.K. adult population will bank in the future via a phone app.

The combination of mobile banking and biometric security in our smart devices will enable consumers to have more confidence regarding their personal security and will be far safer than it has ever been.

Read the rest of the article.


Topics: ATMs, Bank Customer Experience Summit, Bill Payment, Bitcoin, Card Brands, Carriers / Operators, CONNECT: The Mobile CX Summit, Contactless / NFC, Direct Carrier Billing, EMV, Handsets / Devices, HCE, ICX Summit, In-App Payments, Loyalty Programs, Mobile Banking, Mobile/Digital Wallet, Mobile Marketing, Money Transfer / P2P, POS, Regulatory Issues, Restaurants, Retail, Security, Trends / Statistics


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