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  • user 6:53 pm on September 3, 2020 Permalink | Reply
    Tags: , , , Friction, , , Innovator, payment, , ,   

    Real-Time Cross-Border Payment Innovator Could Cut Trillions From Global Financial Friction 

    RTGS is using the latest Microsoft’s Azure cloud platform to enable bank-to-bank cross-border payments in near real-time — 50 milliseconds — pretty much eliminating the risk of FX exchange rate movements.
    Financial Technology

  • user 9:53 pm on May 4, 2020 Permalink | Reply
    Tags: , payment, , Relies,   

    Fed Relief Funding Relies On Old Payment Technology 

    Real-time payments as opposed to the several day time lag often experienced with ACH, are not a mystery to consumers who can use Zelle, Venmo, Mastercard Send and Visa Direct.
    Financial Technology

  • user 2:53 am on June 20, 2019 Permalink | Reply
    Tags: , , , , , , payment, , , , ,   

    The Clearing House Sponsored A Contest For Apps Using Its Real-Time Payment Rails 

    The North Carolina Hub and The invited and fintech firms to develop innovative solutions the TCH real-time payments (RTP) network.
    Financial Technology

  • user 12:53 pm on January 31, 2019 Permalink | Reply
    Tags: , , , , payment, , , , ,   

    The Fed Should Develop Its Own Real-Time Payments, Say Three Former Fed Payment Experts 

    Fed think the central bank build and operate a real-time network to provide competition to the TCH network operated by the largest .
    Financial Technology

  • user 12:18 am on August 21, 2018 Permalink | Reply
    Tags: , , , payment, , ,   

    U.K. Consumers Want Higher Transaction Cap for Contactless Payment 

    In the U.S., a market where checks are still a crucial form of and plastic cards are prevalent as ever, it is hard to imagine using payments for transactions like buying groceries or train tickets. But in other markets like Europe or Australia, can’t get enough of contactless payments. In fact, a [&;]
    Bank Innovation

  • user 12:18 am on August 14, 2018 Permalink | Reply
    Tags: , , , , payment   

    The Allure of Debit Cards for P2P Payment Companies 

    In the U.S., are the most popular method of , so it&;s not surprising that many fintechs are trying to enter the debit card market. For  focused on P2P payments such as PayPal, Venmo (owned by PayPal), Square, and savings apps like Acorns or Money Lion, the leap into the debit card business is easier, [&;]
    Bank Innovation

  • user 3:35 pm on July 20, 2018 Permalink | Reply
    Tags: balance, , , , payment, , , ,   

    How will biometrics balance payment security & convenience under PSD2? 

    The European Union’s new regulations, the General Data Protection Regulation (GDPR) and Second Services Directive (), require secure transactions and data handling as well as good customer experience. PSD2, in particular, requires strong customer authentication (SCA) methods, which dictate “two-factor authentication” to ensure all payment approvals are in place. Two-factor authentication means that authentication of a customer’s identity must be based on two or more of these elements: knowledge (something the user knows), possession (something only the user has) and inherence (something the user is).

    The strict PSD2 RTS requirements may lead to friction in the payments process in online and POS (point-of-sales) checkout. Existing SCA methods such as SMS-TAN and iTAN will be considered non-compliant and not user-friendly. However, PSD2 aims to improve user experience and keep —namely inherence. Inherence is the element that allows leveraging of biometric data and mechanisms for SCA.

    Technological advancements are augmenting e-commerce payments and payments innovation methods, which further enhance the consumer appetite for seamless, frictionless and secure payments experiences. is one of the latest and most cutting-edge technologies being adopted. It’s usually integrated into applications to strengthen security and curb identity fraud. Fingerprint payment is the most common biometric payment method; however, experts predict that other systems—including face, eye and voice recognition—will become more widespread over time. The question is, are these mechanisms compliant with the new regulations and what do need to consider about biometrics in a highly regulated business?

    The RTS indicates the following high-level criteria must be applied while assessing whether an authentication method qualifies as SCA:

    • Dynamic linking: All information about the amount paid and payment recipient must be passed on across all phases of the authentication. For biometrics, the numerical representation generated from the data points collected at the customer’s device needs to be dynamically linked.
    • Independence of channels: The channel used for the initiation of a payment or account information transaction must be separate from the channel used for the receipt of the authentication code.
    • Creation and validation within the bank’s environment: For biometrics, the creation of the templates needs to be performed in the bank’s environment. The software that collects data points from the device must also be provided by the bank.
    • Underivable authentication codes: The biometric data points collected from the device must be changed in such a way that every data point package can be considered a new “authentication code”, which is unique for every request and, at the same time, is capable of being verified by the bank in the matching process.
    • Non-disclosure: Biometric data points or raw data and matching templates must not be stored in the device or the bank to prevent reverse engineering of the raw biometric data.

    Customers and banks are keen to use biometrics

    Consumers are inclined toward using biometric solutions to protect their transactions because of their and speedy authentication process—and more and more banks are adopting biometric as part of their identity verification process to improve user experience. The future of biometrics in the online payment process is promising.

    Innovation in biometric technology

    New technologies are now enabling rapid innovation in two areas of biometrics: visual biometrics (face recognition, fingerprints, finger-vein, hand/finger geometry and iris/retina recognition) and behavioral biometrics (dynamic signature verification, keystroke dynamics and voice recognition). Alongside the emergence of these new modalities, other innovations are also in development:

    • Biometrics as a Service (BaaS), which is based on sharing data with a remote server holding a centralized biometric database and offering biometric-based authentication as a service over the internet.
    • Biometrics and the Internet of Things (IoT), which enhances security for the millions of new devices joining an IoT network by combining passwords with an additional layer to achieve two-factor authentication.

    As biometric solutions gain momentum and uptake, they face challenges associated with their implementation, such as the need to comply with the PSD2 RTS requirements, technology to ensure the solution’s functionality and security, and the need to develop an ecosystem in which biometric methods are used in a consistent and standardized way, across multiple markets benefitting from network effects.

    Though not without its obstacles, adopting biometric payments provides a future roadmap for a seamless, safe and frictionless payments experience. It will be interesting to see how biometrics develops in the coming years, adapting to customer expectations and overcoming the hurdles of implementation.

    The post How will biometrics balance payment security &038; convenience under PSD2? appeared first on Accenture Banking Blog.

    Accenture Banking Blog

  • user 12:19 am on June 16, 2018 Permalink | Reply
    Tags: , , , payment, , , Website   

    Venmo Announces It Will Remove Payment Functionality from Website 

    Social payments platform is phasing out certain on its , venmo.com, including allowing people to make payments there. Wait, what? &;Over time you may see less functionality on the website &; this is just the start&;.venmo.com website may be limited,&; Venmo notified some of its customers through email today. The change might seem [&8230;]
    Bank Innovation

  • user 3:35 pm on May 24, 2018 Permalink | Reply
    Tags: , , , , , , payment, , ,   

    Payment innovation extends the marketplace for credit at the point of sale 

    today are facing stiff competition from innovative fintechs focusing on niches in the retail banking value chain. The advent of Open Banking will also facilitate the creation of new products and services that were previously impossible to imagine.

    This creation of new products and services is blurring the gaps between banks&; traditional lines of business, such as payments and . Fintechs and banks see the importance of linking credit and payments, self-evident for many years with credit cards, but which is an emerging theme in payments currently.

    The millennials of today are uneasy carrying credit card balances, particularly as an aftermath of the struggle with debt during the financial crisis. They lend with more certain repayment terms, which helps them fund their big-ticket as well as smaller purchases while also consolidating their debts. -of- lending has emerged as a new category of lending to help such consumers finance new spending and to help merchants reduce basket abandonment. By partnering with merchants and embracing digital technologies, some disruptive fintechs are competing directly with credit cards and store cards to provide customers with quick and easy short-term credit at checkout.

    One such disruptive in this space is Klarna, which provides a “buy now pay later” option at the checkout. When visiting a website powered by Klarna, shoppers need to simply input their email ID and shipping address, without the need to set up an account or type in credit card information. The maximum purchase limit is different on each account and is determined by a credit assessment by Klarna. For retailers, Klarna assumes all the financial risk of encouraging shoppers to close the deal without . When the online retailer ships the product, Klarna pays the merchant directly, then sends a message to the consumer allowing 14 or 30 days to pay or return the item. Shoppers can also choose to pay on monthly installments with an interest component added. Behind the scenes, Klarna does checks that quickly determine if a shopper is a legitimate person and has good credit based on his or her email and shipping address.

    Other companies in this space, like PayPal credit (formerly known as Bill me Later), have been steadily growing since 2008; PayPal credit offers a digital reusable line of credit to shop anywhere PayPal is accepted. Customers get up to six months to pay on purchases of $ 99 or more. Another player in this space is Affirm, which is also partnering with merchants to offer payment options, including financing as an alternative to credit cards.

    Payments systems, like those offered by these players, are growing, are profitable and are encroaching more and more on traditional banking systems. The primary benefit of such a service is that removal of the payment step greatly reduces friction and shopping cart abandonment in the checkout process. The model proves to be a win-win for the customer and the retailer alike. The granting of a banking license to Klarna has enabled the fintech to move into ‘big bank’ territory and start offering its customers a larger range of financial services.

    Banks such as Wells Fargo and Citigroup have been big players in point-of-sale loans historically—but these types of loans are now becoming increasingly popular. This is due to the advent of that enables merchants to offer the option of a loan at the moment of purchase, where they may have previously only accepted cash or credit cards. Of late, consumer loan growth has become a top priority for banks to diversify their loan books, which historically have been over-burdened with commercial loan portfolios.

    Some banks have taken the route of partnering with fintechs to have their share in the POS lending scene—e.g. banks like SunTrust, Regions Financial Corp, Fifth Third Bancorp, etc. have been offering their loans through GreenSky, a fintech which enables merchants selling furniture, home improvement and medical firms to provide POS credit to their customers. GreenSky provides loans—from $ 5,000 to $ 55,000—which are funded in minutes by any of the banks in their network.

    POS lending provides the much-needed portfolio diversification which banks need in their books. Burgeoning fintechs in this space are claiming their share of these loans from customers—and banks need to ensure they have their own plans in place to either partner with them, or speed up their digital innovation processes to get their fair share of the POS lending market. With the advent of technology and regulations aimed at removing friction in the customer journey, the linkage between payments and credit are strengthening like never before, and banks need to have their strategies ready to retain their dominant foothold in this space.

    The post Payment innovation extends the marketplace for credit at the point of sale appeared first on Accenture Banking Blog.

    Accenture Banking Blog

  • user 12:18 am on April 23, 2018 Permalink | Reply
    Tags: Buttons, , , , payment,   

    Visa and Mastercard Will Combine E-Commerce Payment Buttons 

    providers and will their online checkout experiences into one, in an attempt to make e-commerce payments as simple as PayPal or Amazon. The initiative, announced earlier this week by both companies, would merge Mastercard’s Masterpass payment “button” with Visa’s, Visa Checkout “button,” creating a one-click option for consumers who are growing [&;]
    Bank Innovation

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