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CONSUMERS ARE READY FOR BIOMETRIC PAYMENT CARDS

Lina Andolf-Orup, Head of Marketing at Fingerprints

 

We’ve come a long way in the evolution of digital payments. Magnetic stripe cards, chip & PIN and contactless technology have all played a role in dethroning cash as ‘king of payments’, with many countries well on their way to becoming cashless economies. As with all tech innovation, though, consumer readiness is always the deciding factor in the crowning of new payments royalty.

Now there’s a new technology on the block, ready to help contactless offer even more value: the biometric payment card. In recent years, biometric payment cards have been steadily gathering momentum, currently being trialled by over 20 banks across the world, with the first commercial launch announced last year. A mass-market roll-out is imminent.

But with all the noise from the payments world, it’s important to answer the de facto question that’s key to any technology’s success: are consumers ready?

 

Lina Andolf-Orup

Contactless is (almost) king

Contactless has achieved great success globally, and are now seeing a steep increase across the world.

In addition to consumers being frustrated with having to remember a plethora of PINs and passwords, the current pandemic has also brought to light the unhygienic nature of cash and PIN-enabled payments. Now more than ever, consumers are eager to use a secure, convenient, and hygienic payment method. And contactless almost fits the bill.

Although consumers want to use their contactless card more often, security worries, payment experience frustrations, and the limiting payment cap are all preventing the card from reaching its full potential usage.

The missing link

This is where biometrics comes into play: the missing element that can take contactless into the era of worriless and limitless payments, and provide consumers an experience they expect in the 21st century. With consumers clear about what they want, let’s take a look at what’s top of their checklist and how biometrics can fill in the gaps to realize their ideal payment experience.

 

  1. Smarter, safer contactless. Just for you.

Security is a primary concern for consumers when it comes to contactless, with 38% of consumers citing security as the main reason they are hesitant to use the payment method. For older generations, this number rises to almost 50%.Yet with hygiene concerns at an all-time high, many consumers aren’t eager to use PIN-pads to secure their payments either. By moving the authentication onto the card itself, biometrics secure payments in a way that allows consumers to never touch a PIN pad again.

With the rise of data privacy concerns, consumers can rest assured that their biometric data never leaves the card and won’t be shared with third parties or cloud-based databases. Everything remains securely stored on the payment card itself.

 

  1. Let’s talk about UX

Although every generation is keen to use contactless more, millennials are especially eager to take greater advantage of this convenient payment method. 87% of millennials that own a contactless card use it regularly and three quarters are set to use it more often.

Biometrics bring additional trust to contactless payments, while keeping the same level of convenience, allowing consumers to make a secure payment in less than a second. And with a unified experience so you know what to expect every time you pay; not PIN code sometime, contactless another time, it always works the same no matter where you are in the world.

Because a biometric payment card does not need to be charged – it’s powered from the payment terminal in the same way traditional contactless is – there is nothing standing in the way of efficiency-loving consumers embracing this technology.

 

  1. Contactless made limitless

To offset the lack of PIN security, traditional contactless payments are capped. In light of the current hygiene concerns, countries around the world have already raised contactless payment caps in a bid to reduce PIN entry and cash use. But without any additional strong authentication, the limit has not been lifted completely anywhere to date. This is not only frustrating consumers, but our recent research found this was the primary frustration banks felt regarding contactless.

With the touch of a finger, biometrics brings the robust security needed to remove contactless payment limits altogether. Across contactless cards, mobile, wearables – and even future payment options – biometrics can provide a strong and seamless authentication solution to however we choose to pay or whatever contactless form or shape. Limitless payments with a harmonized UX, wherever consumers are, however much they spend, and wherever they pay: the perfect companion in the age of convenience.

 

  1. Tech nation

A less pressing, although by no means trivial matter, is that consumers are simply ready for something new. Over a third of consumers want to use more modern and personal payment cards, and biometrics sits alongside metal cards, tailored designs and other innovations to do just that. Not to mention that the standard contactless card, the last great innovation in card payments, is now over a decade old!

Featuring the latest fingerprint sensors and an advanced algorithm with AI, biometric payment cards not only meet the criteria for a modern and next-generation payment card but offer the most personal touch imaginable. Your fingerprint.

 

  1. Ready to roll…

We’ve arrived at a crucial point in the evolution of payments. With the technology tested and accredited in line with the rigorous standards of the payments ecosystem, the mass market adoption of this technology is just around the corner. But most importantly, consumers have never been more ready to embrace limitless and worriless contactless.

 

 

Business

WHY AUTOMATING CAN FUTURE PROOF YOUR BUSINESS

By Ryan Demaray, Managing Director SMB EMEA at SAP Concur

 

Every business has administration duties that can be considered mundane and time consuming  but are a necessary core function of operations. Whether it’s paying suppliers on time or processing expense requests, tasks such as these are necessary for the day-to-day running of a business – however it’s safe to say that these tasks are never ranked as the most engaging or rewarding by your employees.

With a UK recession on the horizon, finance teams are under pressure to not only control costs but provide guidance to the business on where savings can be made. This will only happen if your employees are able to focus on tasks that not just keep a business running but allow them to add further strategic value.

Automating the invoice function is just one step towards giving your finance team back valuable time, not only creating a more efficient and productive workplace, but a positive employee experience that supports growth and stability across your business.

 

The gateway to better efficiency 

From receiving the invoice, inputting data, chasing approvals and moving it down the chain of command, research shows that it can take an average of 17 business days to manually process an invoice. For SMBs with a finance team of approx. eight people, implementing an invoice management solution can save on average 69 hours per week.

By allowing the technology to do the heavy lifting, your finance team can use the time to focus on more strategic elements of the business. This includes providing them a moment to take a step back and holistically look at the spending trends and costs across your business. By doing so, they can often pinpoint spend patterns, but also identify cost reducing opportunities, providing visibility and guidance to help positively impact the bottom line in the short and long-term.

 

Enabling growth and accuracy

As your business grows the number of vendors and suppliers you use often increases in parallel. This growth in external stakeholders can cause challenges and maintaining consistent and timely payment of invoices to suppliers is crucial. The Federation of Small Business estimates that late payments contribute to 50,000 insolvencies annually, costing the UK economy £2.5bn. The UK government recognised this and in 2019 implemented a prompt payment initiative, aimed at helping small suppliers get paid on time by enterprises, with the potentially penalty of not awarding government tenders to those who do not adhere to the prompt payment practice.

In addition to this, inhibiting the lack of cashflow to small business through late or unpaid invoices can have more than just a monetary impact. With poor invoice payment practices, your business reputation is likely to suffer damage, which in turn carries consequences across with future suppliers, as well as customers.

Through invoice automation, you are able to streamline your finance and accounting processing by making sure that payments are processed in time, resulting in avoidance of payment delays, calls from suppliers querying about invoice payment timescales and vital staff time responding to these.

 

Supporting employee engagement

Employees’ experiences affect their work outcomes and carry the benefits of high engagement, increased productivity, and a lower staff turnover. Creating a better employee experience is a challenge faced by many SMBs, but once cracked can provide benefits across your business.

More than just providing a workplace environment and culture, businesses with motivated employees can find recruitment and onboarding costs reducing, with retention rates increasing.

But it’s not only the employee that benefits from a better experience – your customers do as well. With many often on the frontline of customer interaction, it’s difficult to keep customers happy if your staff member is disengaged. By employing tools that allow the automation of mundane and repetitive tasks, employees can focus on aspects of work which they care about most.

 

Future proofing for tomorrow

Digital transformation is here and for SMBs employing an automated invoice solution, is a positive step in becoming a business that is ready for scale and growth. Not only will it help benefit your bottom line, it will create positive staff experiences and efficiencies, that help truly optimise your business – now and in the future.

 

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Business

COULD GRAPH TECHNOLOGY BE A POWERFUL WEAPON AGAINST CORONAVIRUS FRAUD?

Crisis funds and loans put in place to help support businesses during the health emergency have become a prime target for cybercriminals. Neo4j’s Amy Hodler examines how graph technology could be a powerful weapon against these scams

 

Fraudsters will use any opportunity to siphon off funds illicitly, and the pandemic is proving no exception. With coronavirus moving rapidly across the world and locking down countries in its wake, cybercriminals have been quick to launch sophisticated methods to callously exploit the situation.

Cybercriminals have been fast to impersonate trusted organisations such as the World Health Organisation, which has itself seen a five-fold increase in cyberattacks since the start of the crisis.

The pandemic is opening the doors for fraudsters who are taking advantage of changes in normal business processes, controls and working conditions to carry out fraudulent activities. Security controls, for example, are often not as strong as normal due to the speed aid is required and the fact that many people are teleworking.

Amy Hodler

Cybercriminals are using fake or stolen identities to draw down governmental emergency funds. In France, for example, the Paris Prosecutor’s Office has launched an investigation into massive fraud of the country’s temporary unemployment scheme where fraudsters have drained €1.7 million. It is investigating potential international links to the fraud.

In a statement Paris Prosecutor Remy Heitz said that more than 1,740 fraudulent operations were discovered across the country on behalf of 1,069 different businesses asking for wire transfers to over 170 different bank accounts.

 

Can financial services’ practices help?

Aid departments and organisations should look to the mature practices of the financial services industry for a lead in combating fraud. Here firms repeatedly and meticulously check and compare transactional data to look for suspicious behaviour that may indicate an attack.

Like applications for financial aid for the impact of the coronavirus, malevolent actors look to defraud financial institutions using false identities when creating accounts and putting together loan applications. Personal data such as addresses, telephone numbers and emails are cleverly assembled to model assumed and phony identities.

 

A need for a different approach

One of the main reasons traditional approaches fall short is that most fraud detection systems are based on a relational database model where data is stored in predefined tables and columns. With large, unstructured data sets, relational databases swiftly reach their limits; queries turn out to be far too complex and response times lag. Banks and government authorities need the ability to follow a trail from one account to another, viewing a fraud network as a whole complete entity to work out how activities are linked.

Unlike relational databases, graph database technology not only represents individual items of data such as person, account number, home address, but also their relationships with one another such as how they are related. Any number of qualitative or quantitative properties can be assigned, showing complex relationships in an easy to understand way.

One of the best graph algorithms for fighting coronavirus cybercriminals is ‘PageRank’, which finds important nodes (objects) based on their relationships and interprets them using visualisation tools. For fraud detection in banking, the algorithm identifies important or influential customers who are featured in a large number of financial transactions. Nodes with a high PageRank Score can be illustrated using a visualisation tool so that they appear larger in the view and can be immediately picked up.

Another key algorithm is ‘Weakly Connected Components’, which works to reveal the hidden networks that form a fraud ring based on common identity features such as multiple applicants all residing at the same address. These hidden connections provide invaluable information when hunting down fraud.

 

Uncovering fraud rings with incredible accuracy

 Cybercriminals are continually developing attack methods, sharing infrastructures to maximise their opportunities for success. Graph technology has the capacity to help stop advanced fraud scenarios in real time.

Graph databases can help future proof an organisation’s fraud prevention initiatives by enhancing insight based on data relationships and building connected intelligence.

 

The author is Director, Analytics and AI Program at Neo4j, the world’s leading graph database company, and co-author of Graph Algorithms: Practical Examples in Apache Spark & Neo4j, published by O’Reilly Media

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