EMV® chip payments continued to make headlines in 2014 as the US forged ahead with its adoption of this payment infrastructure. So what should we expect from EMV payments in 2015?
As Martin notes, in 2014, Apple Pay and cloud-based payments have helped to rapidly bring EMV mobile near field communication (NFC) payments to maturity in several markets. This is set to continue as contactless EMV payments acceptance rapidly increases globally. Following on from this, we will see adoption of EMV as the basis to secure card not present (CNP) m/e-commerce transactions for mobile, tablet and laptop/PC transactions.
Mobile Payments Security
Using both secure element and cloud-based models to make m/e-commerce transactions will deliver a boost to security as any payment will now be ‘card present’ and EMV payments secured. Additionally, with tokenization able to restrict the use of a payment token to a specific channel, the value of stolen data is significantly reduced.
Tokenization specifications and services will be increasingly available from the payment networks. This will trigger activity throughout the ecosystem as all parties decide where, when and how to implement support for tokenization in mobile, cloud-based payments and traditional e-commerce.
Mobile Payments Compatibility
Banks wishing to move forward with mobile payments and reach as many people as possible will need to support cloud-based for Android, Apple Pay for iPhone 6+ and service provider trusted service management (TSM) for access to customers in countries that have been able to establish a ‘traditional’ NFC ecosystem, such as Canada. Issuers will likely need to support multiple payment brands across multiple technologies and will be able to source a single solution or service to reach everyone. Some will take a multi-silo service approach through multiple service providers but this can be expensive and complex.