Payment apps need both old and new security to earn consumer confidence
More traditional payment institutions score highest in customer confidence, so those of us offering innovation in the payments space are wise to look at what these tried and tested players have done right as we create our own best practices to safeguard customers while delivering seamless and hassle-free payment experiences.
As many as 60 percent of consumers showing confidence in card networks and banks, according to Visa, demonstrating the need for a combination of new and existing security methods.
For example, some apps allow users to log in using biometrics such as FaceID or Touch ID on both Android or Apple devices. Such apps require all transfers to be completed by using biometrics and/or a secret passcode by the user.
Another security measure, geographical account monitoring, flags an account and requires a user to go into their email to accept the login if a user signs in from a new physical location (when a U.S.-based user gets a login attempt from China, for instance).
The device can also be used. Unknown device monitor systems trigger an email to be sent to the user to accept a login when access is attempted by a new device(i.e. new phone or computer). And IP monitoring notifies a user via email to accept a login attempt from any new IP address.
Increasingly popular are optional SMS two-factor authentication for users as well as Google Authentication for logins to add an additional layer of optional security.
Granted, as security technology has advanced rapidly in recent years, the lines may be a bit blurred as to who borrowed from whom. Whether it’s a digital native or the local utility credit union, those of us who have found ourselves in roles as stewards of the public trust in this sector are finding agreement in a variety of protocols that bridge even the stodgiest savings account with the coolest app-based e-wallet.