As its next advancement in customer service, AnyBank wanted to enable its customers to pay for goods and services in-store using their smartphone as a payment instrument and directly debiting funds from their prepaid, debit or credit account. The bank’s aspiration was to make this mobile payment service available within its existing mobile banking application; specifically to a selection of its current mobile banking application customers that have a near field communication (NFC) enabled handset.
As there have been many NFC industry pilots, AnyBank recognized that it was now time to issue a more comprehensive deployment and was keen to get its NFC payment solution to market. In addition, AnyBank was aware of new transaction methods being promoted by alternative providers such as PayPal and was eager to secure its position as a forerunner in delivering innovative payment technology.
The challenge for AnyBank was to launch its NFC solution quickly and cost-effectively, without compromising security. As a new bank offering, AnyBank was also keen to ensure it had complete control of the NFC payment application and its dedicated project manager would be able to access and manage the new service directly. This was important to not only support its desire to instantly detect fraud and immediately block an application when necessary, but also ensure a consistent brand and user experience across all available channels and services. Without direct access, AnyBank would be reliant on a third party, such as an MNO, to manage this process on its behalf and meet the desired activity levels that align with brand requirements. AnyBank recognized that this additional ‘gateway’ would restrict its ability to effectively manage the solution and deliver ultimate customer satisfaction.
As a significant investment was already made to develop and provision the mobile banking application, it was important for AnyBank to leverage this technology. Anybank wanted to offer a seamless enhancement to its mobile banking application that would enable NFC payments. Furthermore it was important that such a solution would be compatible with existing EMV contactless terminals.
AnyBank selected the Bell ID Secure Element (SE) in the Cloud solution to deliver its NFC payment solution, allowing AnyBank to simplify the provisioning of the NFC payments (managing keys, certificates and NFC credentials) by using a secure remote environment hosted internally rather than in the mobile device. Using its EMV in-house experts and dedicated product team, AnyBank engaged with Bell ID to update its existing mobile banking application and backend systems to cost-effectively deliver its EMV compatible NFC payments application.
Looking at its current mobile banking application users, AnyBank identified premium account holders that were not only making regular transactions, but also owned an NFC enabled handset that could support the Secure Element in the Cloud solution. These selected customers received an application update notice for their AnyBank mobile banking applications, asking them to visit the app store to download the latest version. Once updated, the application facilitates the user to make NFC payments.
AnyBank was able to launch its NFC payment solution independently, providing it with on-going control and management of the live credentials without the need for third-party involvement. The direct access provides AnyBank with full control of its relationship with the customer so it can ensure brand consistency and the highest levels of customer service. This would not be possible if multiple parties were involved and AnyBank lost its direct interaction with the customer.
The increased computing power and storage capability of the cloud solution, compared to a physical secure element (SE), has also continued to provide AnyBank with more options regarding advanced on-device risk management. This is vital for AnyBank to successfully and effectively control and manage its fraud detection requirements to the highest possible standard. This extra capacity also enables AnyBank to support virtually any number of NFC services in the future.
Having fewer parties involved in the process also reduced the cost and complexity of launching the solution and enabled the bank to deliver NFC payments using its existing infrastructure and user interface. The seamless and successful deployment has led to a high adoption rate among the bank’s selected customer base and the decision to roll-out NFC payments to all interested customers.
The Secure Element in the Cloud solution has provided AnyBank with its first step in delivering NFC payments. Looking to the future, AnyBank plans to engage with mobile network operators to further enhance its security offering using authentication services provided by a physical SE. It also plans to work with other partners to deliver additional services such as loyalty and transportation to provide its customers with a truly innovative NFC experience.