Since their launch in 2007, contactless cards have revolutionised the payment industry. Contactless payments overtook chip-and-PIN as of July 2018, with more than 52% of the UK’s monthly card transactions conducted through a contactless card. Thanks to the ease of tap-and-pay transactions, consumers now expect to pay with contactless not only at big retailers, but also from market stall holders and, now, even Big Issue vendors.
But, despite the convenience that contactless payments offer, consumers are still fearful of the threat of fraud caused by tap-to-go payment cards. In fact, research from IDEX Biometrics ASA has revealed that more than three-in-five (63%) UK consumers are worried that their contactless payment cards could be used fraudulently.
While nearly half (48%) of consumers believe contactless cards have made their in-store shopping experience more convenient, nearly three-in-five (57%) are concerned that contactless transactions expose them to theft and fraud. Worryingly, more than half of consumers (54%) also fear that criminals could scan a contactless card in their pocket, making them a victim of theft without their knowledge.
In a bid to reduce consumers fears and counter fraud in payment transactions, the European Banking Authority introduced the Second Payment Services Directive (PSD2) on 14th September. This new law, aimed at enhancing online and payment security, requires banks and retailers to implement new Strong Customer Authentication (SCA) methods for online and in-customer card payments. For consumers, this means providing at least two factors of authentication for transactions. These are factors such as a PIN or a one-time passcode, or biometric data, combined with the possession of a payment card—even for contactless payments.
The introduction of contactless payments was supposed to make shopping easy. But while the roll out of new SCA factors aims to combat fraud concerns, these additional authentication methods are actually frustrating for shoppers.
Our research found that two-in-five (44%) 25-34-year-olds believe that the current £30 limit for contactless payments should be removed altogether and nearly one-third (27%) of adults overall agree. PINs prove just as much of an inconvenience, as more than a third (35%) of 18-34-year-olds will make sure their transaction is under £30 so they can simply tap and pay.
A better solution
However, with more than a quarter (26%) of those with a bank account concerned about the security of PINs to keep their money safe, not even passcodes are strong enough for consumers. Evidently, we need a better solution to prevent contactless card fraud, alleviate consumer fears and encourage worldwide adoption. Our data shows that UK consumers are ready to welcome a new form of payment card, one that combines both convenience and enhanced security.
Notably, nearly half (49%) of consumers state they would actually feel more secure if they were able to use their fingerprint and PIN to authenticate transactions via their payment card. This highlights that consumers would be much more confident about contactless payments if their bank card was protected by biometric authentication, such as a fingerprint scan, and not just card possession or a PIN as a verification method.
Consumers want more convenience than PINs provide. More than a third (35%) of UK consumers already expect fingerprint biometric authentication to be rolled out for transactions by 2020, so banks and card manufacturers need to step up now to adopt biometric technology and revolutionise payment cards for the future of payments.
With the addition of fingerprint biometric authentication, payment cards can’t be scanned from your pocket or used without your knowledge, as the registered fingerprint must be on the card sensor to verify a transaction. This ensures a stronger level of security for contactless payments and reassurance for consumers.
Security of their data is also an important concern for UK consumers. More than two-in-five (44%) consumers state that if banks can assure them that their fingerprint biometric data would be safe, unshared and not held anywhere, they would be happy to use biometric authentication as a replacement to their PIN. Crucially, on fingerprint biometric cards, at enrolment, the fingerprint image is instantly processed into a data template. This is then stored securely in the card and not in a central database, meaning the customer’s details never leave the card.
Despite consumer fraud concerns, contactless transactions in the UK continue to grow every day. Therefore, the financial industry must do more than just introduce multiple new authentication factors to address consumers’ growing concerns about card theft and contactless fraud. In our have-it-now era, consumers want a transaction process that is fast, frequent and free from hold ups. While PINs and payment limits are currently important anti-fraud measures, shoppers are already irritated by these extra steps in the payment process. They need an easier, more secure solution.
Fingerprint biometric payment cards offer this solution, providing both stronger security and payment convenience that doesn’t hinder the contactless process. As the fingerprint sensor on the payment card is placed in the natural position for holding the card, a contactless transaction can be carried out without any additional steps for the user.
With the support of biometric technology, fingerprint authentication payment cards can help overcome fraud from contactless payments and enhance our shopping experience. If the financial industry act now to adopt fingerprint biometric payment cards, contactless fraud, PINs and payment limits will soon become a thing of the past.
MOBEY FORUM: BANKS’ BIG OPPORTUNITY IN DIGITAL ID WON’T LAST FOREVER
New report offers strategic insights for banks following in-depth review of seven prominent digital ID schemes across Europe and North America
Despite banks playing a fundamental enabling role in the development of national digital ID schemes to date, their uniquely strong position in the field is under increasing threat from web giants and other globally networked firms. This is the view expressed by Mobey Forum’s Digital ID Expert Group in a new research report launched today.
The report, entitled How to Make Digital Identity a Success: Insights and Learnings from Seven Digital ID Schemes, is the product of an in-depth, collaborative study conducted in 2019 with seven digital ID schemes across Europe and North America. The report presents a comparative overview of the different models being applied around the world and provides insights, and comments for banks and financial institutions on their evolution, together with a range of other factors such as their varying models and management, technical underpinnings and services they provide to users.
“As our collective reliance on technology continues to grow so too does our need to establish robust, secure and user-friendly ways of verifying our individual identities, digitally,” comments Jukka Yliuntinen, co-chair of the Digital ID Expert Group, Mobey Forum. “Banks have mastered the ability to operate at scale in highly regulated environments, under conditions that require rigorous and stringent security and identity verification procedures. This has enabled them to play a key role in the evolution of national digital ID schemes and also makes them prime candidates to be future guardians of digital identities, supporting services that stretch far beyond banking and generating new revenues as a result. This advantageous position could change quickly, however, as other powerful networked stakeholders move into the space. Banks must be aware that the window of opportunity to adopt these critical roles may be closing, perhaps faster than they think.”
Launched in a new interactive, all-digital format, the How to Make Digital Identity a Success report gives banks and other stakeholders a chance to refer to a detailed comparison of Alastria, e-Estonia, Itsme, NemID, BankID, Verimi and Verified.Me.
“Like in so many other industries, Google, Amazon, Facebook, Apple, Alibaba/Alipay and other hugely powerful digital players have serious potential to upend the global market for digital ID,” adds Elina Mattila, Executive Director, Mobey Forum. “That said, the success of a digital ID scheme is rooted in trust and collaboration – between users, governments and regulators, telcos, banks and other key service providers. While they can move quickly and at scale, the ‘GAFAs’ are unlikely to be afforded bank-beating collaborative relationships with all of these stakeholders any time soon.”
“This collaborative model is here to stay,” adds Mattila. “It’s only through close collaboration that banks can both address the challenges and seize the opportunities presented by digital identity.”
The report also charts the opportunities and challenges posed by cross-border integration of digital ID schemes and examines the role that regulation can play to assist. It contends that, as digital ID schemes continue to mature, the issue of cross-border interoperability will gather momentum and, while regulation can provide the framework for interoperability, much work remains before the schemes can be harmonised to enable a seamless flow of digital identity usage over the borders.
HALO TRUST USES ADAPTIVE INSIGHTS FOR STRATEGIC BUSINESS PLANNING
Cloud-based financial planning helps HALO Trust deliver greater benefit to communities affected by war
Adaptive Insights, a Workday company, today announced The HALO Trust, the world’s largest humanitarian landmine clearance organisation, employing more than 8,700 employees across 25 countries, uses Adaptive Insights Business Planning Cloud to support the charity’s continued growth with a modern business planning process. The HALO Trust joins more than 750 non-profit customers that trust Adaptive Insights for business planning, benefiting a variety of communities and causes worldwide.
The organisation relied on the development of financial plans utilising complex spreadsheets, which were difficult to integrate into the global planning process and inefficient when producing multiple scenarios for effective option appraisal.
“Being able to holistically manage real-time changes is critical to our success. With a single, powerful system in the cloud, we’ve eliminated the headache of working with siloed spreadsheets and have significantly reduced the time taken to produce high-quality financial models,” says Mick Darby, finance director at The HALO Trust.
For more than 30 years, The HALO Trust has kept people safe and helped communities to rebuild by clearing landmines, destroying weapons, managing stockpiles, and educating communities how to stay safe until the dangerous debris of war can be removed for good. By moving HALO’s planning and analysis process entirely to the cloud, the finance team provides the guidance necessary to support the rapid growth of the organisation, which has doubled in just the last three years. Providing globally distributed team members with an easier, faster, and standardised approach ensures that the charity’s budgets and forecasts reflect current local conditions and currencies, all rolled up into a single platform.
“We’re proud to provide organisations like HALO with more time to focus on the important humanitarian work they do by simplifying and modernising their business planning process,” said Robert Douglas, Europe planning director at Adaptive Insights. “By streamlining budgeting and forecasting, we’re helping to make every pound and every volunteer hour count, which in turn helps HALO maximise the impact on its mission to save and protect lives.”
WHY DIGITAL TRANSFORMATION IS CRUCIAL FOR BANKS
David Murphy, Managing Partner, Financial Services EMEA & APAC at digital consultancy Publicis Sapient Over the past five years,...
REACHING THE NOT-SO DIGITAL NATIVES
By Garry Hamilton, Group Business Development Director, Equator It’s 2020. There’s no denying that banks and financial institutions have...
THE ‘LEGO-IFICATION’ OF BANKING IT AND THE RISE OF DIGITAL FINANCE ECOSYSTEMS: FOUR PRIORITIES FOR BANKS IN 2020
Danny Healy, financial technology evangelist, MuleSoft The advent of the open banking era and continued emergence of fintech has...
WHAT TO DO WITH YOUR LIFE SAVINGS, RETIREMENT AND INSURANCE POLICIES WHEN EMIGRATING
By Renier Hugo, Alexander Forbes Certified Financial Planner With South Africans increasingly opting to live abroad, a hot topic...
MOBEY FORUM: BANKS’ BIG OPPORTUNITY IN DIGITAL ID WON’T LAST FOREVER
New report offers strategic insights for banks following in-depth review of seven prominent digital ID schemes across Europe and North...
THE END OF YEAR TAX CHECKS THAT COULD SAVE YOU THOUSANDS
Charlie Reading, Founder and MD of Efficient Portfolio After HMRC’s tax return deadline at the end of January, it can be...
RISK VS REWARD: IS AI TAKING OVER?
Xavier Fernandes, Analytics Director at Metapraxis A study by Oxford University academics into “The Future of Employment” in 2013 prompted...
HALO TRUST USES ADAPTIVE INSIGHTS FOR STRATEGIC BUSINESS PLANNING
Cloud-based financial planning helps HALO Trust deliver greater benefit to communities affected by war Adaptive Insights, a Workday company,...
IS DATA PROTECTION AND PRIVACY RELEVANT ACROSS ALL STRATA IN INDIAN SOCIETY?
A Study by Pensaar Design With CGAP Pensaar Design has been working on a research study with CGAP to better...
THE RISE OF CHALLENGER BANKS AND HOW LEGACY BANKS ARE TRYING TO KEEP UP
Jean Van Vuuren, Regional VP for UK, Middle East and South Africa at Alfresco The finance world has been...
NEW STUDY: AI HELPS ORGANISATIONS GROW PROFITS 80 PERCENT FASTER
Global research highlights how organisations are capitalising on emerging technologies to enhance finance and operations for competitive advantage Organisations...
UK START-UPS MUST MAKE THE MOST OF A SMALL WINDOW TO CAPITALISE ON INVESTMENT OPPORTUNITIES, FOX WILLIAMS WARNS
Despite rising investment, Brexit and growing interest from tech giants could cut off start-ups’ opportunities in 2020 While a...
XPEDITION UPGRADES MORE THAN ONE MILLION OPENWORK CLIENTS TO THE DIGITAL AGE
Xpedition, leader in the implementation of cloud-based business applications, has deployed a new system which has digitally transformed the customer...
ORACLE AND MICROSOFT BRING ENTERPRISE CLOUD INTEROPERABILITY TO EUROPEAN CUSTOMERS
Today, Oracle is announcing the continued expansion of its cloud interoperability partnership with Microsoft with a new cloud interconnect location in Amsterdam....
THE EMOTIONAL AND FINANCIAL COST OF WORKING WITH OUTDATED TECHNOLOGY
Slow Tech Could Waste 24 Hours of Worktime a Year In this digital age, businesses are hugely reliant on technology...
HOW TECHNOLOGY IS FUTUREPROOFING STOCK MARKET TRADING
Tony Shaw, Executive Director, London Office and Head Sales UK & Ireland at the Swiss Stock Exchange Markets are shifting,...
REVEALED: THE TOP 10 COUNTRIES THAT ARE REDUCING THEIR RELIANCE ON OIL
Ben Lobel, Copywriter at DailyFX New tool charts global commodity trading over the last decade The UK has reduced its...
‘MOVE FAST BUT DON’T BREAK THINGS’ – WHY FINTECHS WILL COME TO LOVE REGULATION
Alex Johnson, Director of Portfolio Marketing, FICO The guiding ethos of fintech is move fast and break things. It’s...
OFFSHORE COMPANY FORMATION TACTICS FOR SMEs
James Turner, Director at company formation specialists, Turner Little Starting a business brings with it its own set of challenges,...
EMV® 3DS – PAVING THE WAY FOR SEAMLESS AUTHENTICATION
Jean Fang, Product Manager, FIME The growth of e-commerce, m-commerce and remote commerce transactions is showing no signs of...