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TRANSFORMING PSD2 COMPLIANCE INTO DIGITAL BUSINESS OPPORTUNITIES

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TRANSFORMING PSD2 COMPLIANCE INTO DIGITAL BUSINESS OPPORTUNITIES

Banks and other financial institutions are racing against the clock to comply with the European Union’s revised Payment Services Directive (PSD2) by January 2018. At the same time, many of these companies view PSD2 as a regulatory requirement at best and a threat to their business at worst. After all, PSD2 threatens to eliminate the sole ownership of customer data that banks have enjoyed until now. This in turn is instilling a justifiable fear of becoming a commodity service and being overshadowed by innovative payment services offered by Account Information Service Provider (AISP) and Payment Initiation Service Provider (PISP) businesses.

Seshika

Seshika

However, progressive banks are recognizing the flip side of data sharing. Instead of being displaced by third parties offering AISP and PISP services, banks can compete by bringing something unique to the table: their vast knowledge of customer behaviour and attributes. This puts banks in a stronger position to deliver superior and personalized services that create additional revenue streams. With this in mind, organizations putting the technology into place for PSD2 compliance need to do so in a way that will scale to fit the new business models that financial firms need to adopt for long-term success.

This article examines how banks and other financial institutions can capitalize on their investment in PSD2 compliance to create new digital business opportunities, as well as an architecture that scales to support these opportunities 

The New Normal of Open Banking

Banking as we know has always been “closed” in nature—with both interactions and the data driving them limited to the bank and the customer. By contrast, PSD2 promotes a more “open” environment for banking interactions by requiring these firms provide regulated third-party providers (TPPs) with access to customer information. This access, which needs to be authorized by the customer, can be in the form of account information and payment initiation.

API management serves as the underlying technology for enabling PSD2 compliance since it can expose customer information through APIs in a secure and controlled manner. The diagram below shows how banking transactions look today and how they will appear once PSD2 compliance is in place.

The Open Banking Ecosystem for Data-Driven Business Expansion

Complying with the PSD2 regulation should be viewed as simply one piece of the bigger open banking picture. In order to visualize and reap all of its potential benefits, banks need to think more broadly about how the EU created PSD2 to support the best interests of the customer. And then financial firms need to follow the same thought process.

To date, third-party providers have taken the financial domain by storm, offering innovative and customized financial services that leverage the data exposed by banks. Yet, there is nothing stopping a bank from doing the same, or even better. Banks, credit unions, and other financial institutions can expand their purview of a customer’s journey to their interactions with other banks by consuming these other organizations’ APIs to gain a holistic understanding of their customers’ financial portfolios – along with an understanding into their competitors’ customers.

The result is a rich set of data that can be analyzed to build valuable customer insight, which can be used to support a data-driven sales strategy. Following are some of the most notable opportunities

process flow diagram

process flow diagram

Extended Product and Service Portfolio. By viewing a customer’s complete financial portfolio, banks can proactively create more competitive products and services. For example, a customer might have four accounts, including not just savings but also credit cards and a retirement plan, spread across different banks. By considering the average return on investment (ROI) for these four accounts, a financial firm can create an investment product that provides a more competitive return. If the bank already has a product that provides a better ROI, it can deploy aggressive marketing campaigns that encourage customers to switch.

Additionally, data can be used to identify recurring events over the long-term financial cycle of customers. If a bank identifies a deficit across all customer accounts by the end of a particular quarter or particular month, it can create a short-term overdraft service. The customer can subscribe to this service as soon as the predefined deficit is reached. Such services boost customer loyalty and retention.

Market Expansion. PSD2 lets managers see the financial world through a set of eyes they did not have before. This is the perfect opportunity for identifying lucrative or underserved markets. For example, if there is a large volume of payment transactions or account deposits within a certain demographic (age or location) currently unserved by the bank, this creates a market expansion opportunity. Further, if there are large volumes of account deposits all being served with basic saving plans, financial firms can approach these markets with more competitive offerings.

Insight Selling. Being able to look into a target market’s financial profile is a dream come true for most vendors. Industries that deal with large volume purchases, such as real estate, mortgage, investment banks and insurance, welcome data on creditworthiness, net incomes and competing investments of their target markets. At the same time, lifestyle industries, such as retailers, airlines and hospitality, value insights into seasonal spending patterns, demographic trends, and financial status that can help them target niche segments. Banks have the power to use aggregated data and generate customized insights for each of these industries

Business Banking. Open banking provides the opportunity to create stronger relationships with corporate customers. Banks can create cash flow management dashboards for small to medium enterprises (SMEs) who need a consistent funding stream to run their operations. There also is an opportunity to cross-sell foreign transaction services to firms that conduct large volumes of business outside the operating country. And the most valuable service financial firms can offer is insight-based advice on how to manage a business’s finances better. Since open banking provides a complete picture of corporate customers’ finances, their needs can be served as a business and not just an individual.  

Scalable Architecture for Digital Optimization 

Technology plays a key role in realizing the business expansion opportunities presented by PSD2. This requires an architecture that can address compliance and then scale to support several other technology requirements for driving digital businesses.

Central to any open banking architecture is an API management platform, since it provides the mechanism for exposing customer account and payment data through APIs in a secure manner. At a compliance level, the API management technology needs to support:

  • Strong customer authentication (SCA) to ensure that there are no security compromises between the API interactions of banks and third-party providers.
  • Customer consent management to obtain a customer’s consent to complete transactions on his or her behalf, especially when the payment initiation happens through a third party.
  • API analytics and usage dashboards to identify the consumption patterns of a bank’s APIs, which can drive insight for future API monetization opportunities. These analytics are collated and presented via dashboards. 

Looking more broadly, much of a bank’s success in PSD2 will rely on its ability to take advantage of the open data ecosystem that PSD2 enables. Firms that go the extra mile and are able to act as third-party service providers then get access to a rich and comprehensive customer financial data set maintained across banks. In order to achieve this, the technology used for compliance should be extended to meet the requirements of third-party services. These include API integration, fraud detection, and business analytics and dashboards.

API Integration is required to connect to third-party APIs. The API management technology implemented, needs to expand out of a bank’s internal architecture to connect to external APIs of other financial firms. These APIs may be written on different data formats, hence there will be the need for an API aggregator to mediate these different data formats into a common flow.

Fraud detection is critical and only becomes more so when operating in an ecosystem that is populated by multiple API users and consumers, since this opens the door to greater vulnerability. The fraud detection mechanisms deployed for PSD2 compliance need to scale to capture a larger volume of events and adopt more stringent techniques to detect anomalies.

Business analytics and dashboards play a central role since data is only as useful as how you derive insights from it. All of the data collated through an API ecosystem needs to be processed, analyzed and presented using a combination of real-time and batch analytics. These analytics then need to be represented through various levels of dashboards customized for purpose and audience.

Many banks will want to go beyond the basic business analytics of the API management system and implement more in-depth analytics to derive insights about customers’ financial portfolios, spending patterns, purchase decisions by demographics, etc. These insights can then be used to create customized financial products and services that capture niche market needs and are not addressed by the competition, supporting strategies for both cross-selling and upselling.

Further, banks can open up new revenue streams through the creation of aggregate business insights from consolidated customer account and payment data, which can be sold to other financial and nonfinancial service providers. These service providers then can use the insights to support their own marketing and sales strategies.

Ecosystems to Support Customer Lifestyles

We have discussed the concept of an ecosystem. One of the most exciting aspects of open banking is that it gives banks the opportunity to pick their definition of an ecosystem. Those firms that want to take the ecosystem concept to the next level can partner with third-party providers to offer services outside the financial domain. The core technologies remain the same as those required with third-party financial services, but the requirement to scale becomes much larger and more demanding.

Similarly, banks need to be open in their perceptions of PSD2 and realize the digital transformation opportunities that it brings. This means thinking beyond the compliance hurdle and accepting open banking as the digital reinvention that financial firms never knew they needed. Once this hurdle has been cleared, the sky is the limit for banks that want to compete by creating a customer-first business.

About the Author

Seshika heads the financial solutions team at WSO2 where she builds financial industry-specific solutions using WSO2’s middleware platform. She also works closely with potential customers looking to deploy a financial solution, providing ongoing consulting.

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Time for financial institutions to Take Back Control of market data costs

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Time for financial institutions to Take Back Control of market data costs 1

By Yann Bloch, Vice President of Product Management at NeoXam

Brexit may well be just around the corner, but it is market data spending that financial institutions are more interested in taking back control of right now. In fact, other than regulatory equivalence post the transition period, it is hard to think of a more prominent issue right now than the rising cost of market data. According to analysis at the end of last year by Burton Taylor, global spend on market data topped $30 billion in 2019. With costs showing very little sign in coming down, at least in the short to medium term, now has to be the time for market participants to better grasp of not only what their costs could be at the end of the month, but also the precise areas of business consuming the most data.

The problem has been, and still is, seeking out those month-on-month cost anomalies. For example, why is it that fixed income and FX derivatives costs have all of a sudden doubled compared to the previous month? The trouble is it is nigh on impossible to get accurate answers to questions like this because the vast majority of investment firms have no fullproof way of analysing how spending evolves over time. In certain cases, financial instructions can experience a 10%+ increase on their monthly market data vendor bills.

It is not hard to see why – as every small incremental cost mounts up fast. First there are the direct costs for one or more sets of data – which leads to billing getting far more complex. Sure, a market data vendor may be adding lots of different add-on services to help clients save money, but at the same time, they will also be adding on more costs. If this was not enough, there are also the indirect costs around data governance and regulatory compliance. New rules, such as the Fundamental Review of the Trading Book (FRTB), means that investment banks will have no choice but to consume a lot more data to be able to run models and back testing.

All this begs the question; how exactly can firms gain more control of their market data spending? A good place to start is trying to reduce waste. This involves firms making sure they do not request new sources of data from their vendors that they are not going to use. If data vendors charge for every single piece of data that the client requests, then the client needs to make sure they are going to act on this information. Then there is the recycling of the data. Say an investment fund needed a new piece of data instantly, and also needed that same piece of data at the end of the day. If the fund manager already has the data, they surely, they do not need to request it again? It is all about being smarter about reusing whatever data the fund manager has received previously. After all, different trading desks are all consuming data and requesting information through the data management team, but it is hard for the trader acting on the data to work out how much the data actually costs. This is why being able to allocate these costs to the different trading desks is key.

When all is said and done, the only way financial institutions can harbour any hopes of overcoming this longstanding data cost problem is by deriving more insights to ensure they a squeezing every last drop of value from their market data. Technological advancements mean that firms can now keep right on top of not just their data direct costs, like complex billing, but also the indirect costs around regulation. With so many other cost pressures across the business right now, it is time financial institutions take advantage of new technologies to finally address the issue of rising market data costs that has, frankly, plagued the industry for too long now.

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Cash was our past, contactless is our present, contextual payments are the future

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Cash was our past, contactless is our present, contextual payments are the future 2

By Jason Jeffreys, founder of FETCH

$6tn in the next five years, this is how much the world will spend through contactless payments, according to analyst firm Juniper Research. For many of us who have discovered and since relied heavily on contactless payments since its introduction in 2007, either through card, phone, or watch, or those of us who have taken a stroll down a covid-era high-street to see shop windows adorned with “card payment only” signs, this is hardly a surprise. Even the Church of England in 2018 equipped 16,000 religious sites with terminals to allow for contactless donations. So what is behind this rise? And what is next?

The switch from cash to contactless is a transformation of payments that is driven by four key factors: speed, security, accessibility, and hygiene. While businesses and customers alike have felt the immense benefits of the cash to contactless transition, the next iteration goes further by digitally transforming the entire transaction process. It’s that potential which pushed me to launch FETCH – technology that allows customers to order and pay from their phone, anywhere. By exploring the benefits already felt by our contactless present, I hope to show you why I’m excited to be part of the contextual payments future.

Speed

Aldi is all about low prices and this is achieved with efficiency – that is why their checkout staff are trained to scan as fast as possible, it’s why their barcodes are huge, and it’s why you can’t keep up. It’s all in the name of efficiency and cost saving, and contactless payments make this possible.

While increasing the rate of transactions has a direct impact on money through the till, there is an increase in the perceived speed which does wonders to get customers back through the door. Shoppers may have spent an hour or more in-store but their direct interactions with the shop and staff were quick and timely and that’s the experience they remember and the impression they build of the brand.

Aldi are not alone in realising this and while it is easy to point to the impact that contactless has had on the retail sector, its revolution has slowly crept into hospitality –  an industry notoriously late at adopting new technologies.

High-street coffee shops rely on getting as many people as possible through the doors and back out again. They want as little disruption to your day as possible but more importantly, they want to process as many payments per hour as possible. Cash transactions are slow in comparison to a single tap, so for the coffee shops, this means fewer transactions per hour and money lost. For businesses in this sector who rely on periodic rushes, measuring performance per hour is a necessity and maximising revenue over these short windows is so important.

For reasons obvious to anyone who has been to a crowded hospitality venue, stood at a crowded bar or waited for waiting staff during a busy dinner rush, the businesses in this space already running on contextual ordering systems like FETCH have all reported a vastly improved staff and customer experience in hospitality venues. While it may be difficult to spot how these benefits can be felt in retail, this reality is not bound to fiction or the distant future – it’s being pioneered already in retail by Amazon.

In a well documented glimpse into the future of shopping, Amazon’s latest Seattle store removes the transaction element completely. Instead, you put your items in your trolley as you go round the shop, and the sensors and cameras accurately and automatically recognise the items, keeping a track and total, before taking payment automatically and digitally through your Amazon account once you walk the trolley back out of the store. Can you imagine standing in a supermarket queue to pay once you’ve experienced the ease, simplicity and effortlessness of that?

Accessibility

Smartphones have got smarter and they have revolutionised the way we get through the day. From how we discover, connect, and socialise, to how we organise, learn, navigate and search for answers – rarely an hour goes by where we aren’t using our phones for something.

As time moved on they only grew to become more capable, responsible for managing more aspects of our lives, and it was only a matter of time before they were capable of handling secure contactless payments. The leap for people to trust their smartphones with just one additional task was tiny.

When you couple this with debit and credit cards being enabled with contactless technology by default, the rise of wearables, and e-commerce growing massively, the results are clear – people are more trusting of online payments, are more familiar with buying in this way, and have more ways of making contactless purchases, than ever before.

In fact, a Mastercard survey in 2016 indicated that Brits carry less than £5 in cash on average, with 14% of people surveyed carrying no cash at all, and 1 in 10 replacing wallets and purses altogether, opting for a simple card in the pocket instead. Figures which have no doubt grown even starker since 2016.

When we take this into consideration with 99% of 16-24 year olds, 98% of 25-34 year olds, and 95% of 35-54 year olds all being smartphone owners, we begin to see the inevitability of contextual payments as the next iteration and how the response to contextual payments will be positive and welcome; something FETCH clients and the vast majority of their customers can all attest to.

Security

Cashless payments means no cash in the till or on-site; no chance of mistakenly accepting fraudulent notes or coins; no trips to the bank to deposit or withdraw cash for the till; the end of time spent counting money every day, and the end of discrepancies which occur from this.

It limits the levels of theft, switches businesses over to an accurate, secure and efficient system, and gives business owners their time back. It makes tax returns, financial planning and forecasting and more all possible, easier and quicker and in short, it makes businesses stronger.

Jason Jeffreys

Jason Jeffreys

Contextual payments go further by offering really insightful data of what happens before and after people decide to part with their money; for example, how long they spend browsing before ordering, what they look at, what they’ve missed, when they order next and more. This means you are informed and can redesign and improve the user journey so it works better for you and your customers, all based on accurate, relevant and timely data.

As contactless payments evolve to contextual ordering, it’s important to choose a system that easily integrates with the wider business and your systems so you can continue to access the benefits of contactless. That’s why from day 1 of building FETCH I put so much emphasis on ensuring it integrates with one of the biggest and most popular POS systems in hospitality.

Hygiene

Initial adoption has long been the biggest barrier to widespread, sustained use of new technologies and going cash-free is no exception.

Given that the coronavirus thrives and passes through human contact and shared surfaces, going cash-free and contactless was a small, easy and obvious change to implement for businesses to become covid-secure and safer for customers and staff.

FETCH and other contextual payment systems are being used to go beyond this, to keep staff and visitors safe by limiting human contact beyond just payments. In our case, we have allowed hospitality customers to continue to browse, place their orders and pay, just as before, but without the need for repeated human contact at every single stage.

Given the health imperative and coercion from governments, local authorities and health bodies to switch to contact-free operations, businesses who may have once been years away from this change are laying down the infrastructure today out of necessity and it will be no surprise if contactless becomes a staple long after the coronavirus has left.

Post-coronavirus, contextual ordering offers businesses the chance to let the technology take care of these minor tasks, giving staff the space to instead dedicate their time, talent and energy towards elevating the overall experience. It’s the health imperative that acts as the gateway to this.

What does this transition mean for businesses? With visible consideration and effort put into hygiene, you are making your customers feel safe and cared for; by making transactions quick and painfree, you are giving your customers time to spend on the experience they came out for in the first place. In the process, you have created the ideal conditions for consumers to spend money and given them the confidence to do so.

I’ll end with the picture UK Finance data has painted through multiple annual payments reports: in 2006, 62% of all payments in the UK were made using cash; three years later it dropped to 58%; in 2016 the proportion had fallen to 40%; and just two years after that, cash formed just 28% of all UK payments. With a pre-covid prediction envisaging that by 2028 fewer than 1 in 10 payments will be made by cash, the widespread, covid-induced encouragement, adoption and enforcement of cashless policies in retail and hospitality has surely brought that many years forward.

Contextual ordering is the next inevitable iteration and if you were one of the few who reaped the benefits of going contactless early, you have the chance to be ahead of the curve once more. A welcome future for a multitude of industries is being set around us today.

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The Rise of Contactless Payments

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The Rise of Contactless Payments 3

By Bilal Soylu, CEO of XcooBee

Today, banks involved in the issuances of credit cards, and companies at the nexus of merchant services, are experiencing a rare event in the industry.

For years, digital payment innovators fought a hard battle to adopt contactless systems and create standards. The effort and push came from companies with much of the effort directed at consumers to adopt their methodology. Whether it is Samsung Pay, Google Pay or Apple Pay they all had to overcome similar hurdles – consumers were reluctant to adopt a technology that did not have a sufficient number of merchants; thus, the progress was slow.

The COVID-19 pandemic rewrote the script in a whirlwind. All of a sudden, consumers began to demand contactless payment experiences in every way imaginable. The supply side push has turned into a demand side pull and the adoption rate is spiking.

This left banks, originators and companies involved in the eco-system with an interesting dilemma – fast decisions have to be made as to which digital technology to invest in and do they bind themselves, for multiple years going forward, to a specific infrastructure.

While previously the belief was that this could be explored over a longer period of time, the current reality is that these decisions are forced on institutions “overnight”. In this light, there are many different aspects to contactless payments and originators, and banks need to make smart bets on which type should be supported.

So, let’s look at all the relevant elements of contactless payments to explore a better model for institutional support.

General Drivers of Contactless Acceptance Growths

Safety

Physical safety from virus infection by avoiding touching 3rd party equipment or allowing safe distancing from other people and/or equipment is the main driver today. It has been emphasized by many epidemiologists as a basic requirement for conducting business. Consequently, it will be no surprise that safety is the factor that underlies the rapid adoption of a number of contactless payment technologies by once reluctant consumers.

We expect this to be a primary driver well into 2021. Thus, any technology to be rolled out in the short term should enhance safety in some form or contribute in a way to the improvement of safety.

Security

An early benefit highlighted and emphasized by contactless technology providers was the data-security aspect that surrounds the transaction. Rather than exchanging the actual credit card number, for example, a tokenization is performed to create transaction specific tokens that are then used to complete the transaction. Even when intercepted, these tokens cannot be used outside this transaction and, thus, the approach is considered to be more secure.

Although the data-security value was incessantly marketed to consumers, most had, and still have, a limited understanding of the implementation of the technology. Thus, the appeal to the consumer with this benefit was not successful. However, the increased security elements were a clearer benefit for merchants and issuers. Hence, a steady growth of terminals and accepting merchants was the result.

In general, the tokenization approach to security has been chosen for many types of contactless payment systems, this includes NFC based card chips, digital payments like Apple Pay, Google Pay or Samsung Pay. However, for QR payments the use of tokenization should be verified as there are no current standards that govern its use consistently.

Convenience

Convenience was the aspect of many contactless payments system that appealed the most to consumers prior to Covid-19. The ability to either very quickly conduct a transaction or very flexibly conduct a transaction drove consumer adoption. For example, being able to load many payment methods onto a mobile device that users carry with them anywhere increased the appeal of use to consumers.

Thus, when evaluating a particular contactless payment technology with a longer-term outlook the convenience aspect should be emphasized. Given the historical basis, consumers are very likely to be attracted by this aspect as the main driver of adoption again. A financial institutions’ post-Covid planning and investment models for contactless technology should consider this to be a major aspect.

Contactless Payment Categories

When we speak of contactless payment systems, we normally refer to any payment technology that can trigger a payment transaction in the physical space with direct consumer presence, but without direct contact with merchant equipment. Thus, we would exclude online and ecommerce transactions for this purpose.

We will focus on the two mainstream contactless technologies, NFC and QR payments, and review them here. Other contactless payment technologies exist but have not reached widespread adoption so we will only provide brief overview of those.

NFC Payments

Technology

Near Field Communication (NFC) payments are the earliest form of contactless payments that found acceptance in the markets. Generally, two devices are needed and must be near each other to communicate via radio signals. Both the reader (interrogator) and sender (tag) must be within 4cm (1.5in) for the transaction to be initiated. ExxonMobile’s Speedpass is widely believed to be the first implementation of this touch and go type of pay experience that has come to exemplify NFC based contactless payments.

There are two common sub-categories from that technology today; The single card-based sender (tag) and the mobile-phone-based sender (tag). The mobile phone-based application tends to be more flexible allowing consumers to combine multiple cards into one mobile-wallet that is secured with some form with biometric access.

Market

However, NFC signals are not uniform and different standards are used in the Far East (i.e. Japan) rather than in Europe.

NFC payments found early success in developed western markets where the population already had easy access to banking and bank issued card-based tags. However, in countries where the banking system developed later and card-based payments were not common, NFC payments did not flourish.

Thus, today, the market for NFC is mainly concentrated in Europe, Japan, and US.

Activation

The roll out of NFC requires hardware on the merchant and consumer side. The merchant hardware is normally The Rise of Contactless Payments 4leased, and leasing programs have been steady revenue generators for those companies. Whereas, today, the global contactless Point of Sale (POS) terminals market is poised to grow by $5.54 bn during 2020-2024, progressing at a CAGR of 16% during the forecast period, according to research done by Technavio.

However, with the pandemic, the speed of system activation has been a key criterium for selection of the technology. In this context, delivery of hardware, setting up of POS systems and testing connectivity slows down rollouts and potential revenue.

Similarly, requiring consumers to be equipped with supporting hardware may also introduce a friction element, especially in markets where NFC has gained less momentum.

QR Payments

Technology

QR codes are like 3D barcodes. The user scans the QR code via a smartphone and the smartphone, then interprets the barcode and a related website or application may complete the payment process. Like NFC, this can be done very quickly without any contact between smartphone (reader) and the item or display using the QR code.

Normally, QR codes are immutable, meaning that once generated they do not change. However, there are now dynamic smart QR codes, like the ones Xcoobee offers, that can overcome this limitation.

Market

QR codes found strong distribution in markets where banking reach was limited in some form through government or market forces. The QR payment process, in many markets, also exemplifies a jump to direct digital payment, bypassing much of the banking system for purchase transactions. Especially when QR payment systems are connected to mobile wallets the provider of the wallet handles all transaction steps in-system, reducing friction and creating an ease to use and adoption. They have found popularity mainly in China, where AliPay and WeChat pay are gaining dominant market shares.

However, with the advent of COVID and the speed advantages in implementation and cost, other non-traditional markets such as EU and US are seeing dramatic increases in use of QR payments as well.

Activation

Activation of QR code payments commonly requires merchants to simply print codes, which can be accomplished with less hardware. The integration into bank systems is handled via merchant or bank app and the consumer simply requires a smartphone.

While bank offerings in this segment tend to be limited, given the simplified requirements, QR implementation can be quick for merchants to roll out.

Other Contactless Options

There are other contactless payment technologies that are currently competing for market attention and can be grouped into a biometric group and a technology group. The biometric group includes such options as voice, facial or palm recognition-based payments while the technology group includes options like Bluetooth and Farfield-type technologies.

None of these have gained sufficient market share or have execution or security advantages that would push them ahead without concerted efforts from large market-players. Similarly, there is no consumer advantage that would drive a consumer demand-based distribution for these technologies.

NFC vs QR

Which one should you choose to support? Each one of these contactless payment methodologies has advantages and disadvantages. NFC can be nominally faster to use for consumers and more lucrative for banks, but QR codes currently reach a wider market since more phones can read them than those that can read NFC tags.

Operational simplicity and speed also favor QR code activation, but if there is already and existing NFC infrastructure this may become a secondary consideration.

Simply speaking, we are living through unprecedented times, consumers are demanding contactless payment and creating a demand side wave in exchange for safety. How each institution answers this call best will depend on circumstances and context.

Overall, it may be advisable to hedge bets and support both methodologies and offer services based on both. Evaluate customer input, and then, adopt and activate the best option for your financial institution.

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What’s the current deal with commodities trading? 23 What’s the current deal with commodities trading? 24
Trading1 day ago

What’s the current deal with commodities trading?

By Sylvain Thieullent, CEO of Horizon Software The London Metal Exchange (LME) trading ring has been the noisy home of...

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