The Smart Card Alliance’s Payments Summit is bringing together payments professionals to discuss strategies that technology providers and financial institutions are taking to improve payment cards, while focusing on how to better protect merchant and consumer data.
Troy Bernard, Head of Digital Products at Discover Network, will participate on a panel at the event, weighing in on the topic of, “Changing Risk Management Through Payments Innovation.” We took a moment to sit down with Troy to learn more about his thoughts on where the industry should look to improve payment security with the inevitable rise of mobile payment devices.
With industry conversations starting to shift from EMV implementation toward identifying new technologies that will add more layers of security, the rise of mobile payment solutions is spurring changes in the strategies of stakeholders.
For 2015, Bernard lists encryption, tokenization, and 3-D Secure 2.0 as just a few of the important advancements that can keep both traditional and card-not-present channels secure.
“For the millions of merchants focused on security at their point-of-sale systems, encrypting customer information at the point-of-capture whether it be a swipe, a dip, or manual entry, is an important step to protect consumers from fraud,” said Bernard.
“Tokenization falls within the same realm of transforming data to the point that it poses no value to a fraudster. To add another layer of security within the card-not-present channel, 3-D Secure 2.0 connects online customer data directly with the card-issuing bank. The protocol facilitates the exchange between stakeholders and provides the ability to authenticate cardholders during an online purchase, reducing the likelihood of fraudulent usage of payment cards.”
As mobile devices slowly change the face of commerce, it can be considered inherent that consumer buying habits will change.
“Arguably the most important change will be the interconnectivity that mobile devices offer merchants to better engage consumers,” said Bernard.
“For example, in-store Bluetooth low energy beacons and geo-targeting will help to enhance consumer engagement, while mobile POS devices may drive up sales when customers can buy on the spot with a sales associate, rather than walking to the checkout.”
Bernard adds, “Today, we see many solutions in market, some focused purely on merchant offers, others on the point-of-sale, some rely on NFC, others the Cloud. We are, and will continue to enable solutions and partnerships spanning a spectrum of emerging commerce – mobile, chip, alternative, and prepaid.”
With mobile device adoption and the move of payments towards online channels, there comes the opportunity for disparate payment methods, forms, and currencies, to truly converge.
What’s next for mobile payments in 2015? Bernard, like most payment industry experts, is interested in “seeing where mobile wallets will go, and which ones “win” with consumers and merchants. There are many players innovating in this space, so it will be interesting to see how the solution evolves.”
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