A wallet is a way of organising things. My Apple Wallet, just like my real wallet, doesn’t have any cash in it. It has credit cards, debit cards, loyalty cards, vaccination records, boarding passes, train tickets and driving licences (Apple have just gone live with their driving licence and state in Arizona). These things are all held independently in the wallet: they don’t talk to each other and they don’t share data with each other. They are also, as you will have noticed, mostly about identity, not money.
Contactless Card Acceptance
Solutions to enable Android phones to be used to accept EMV contactless card payments without requiring additional hardware have been around for a while. We’ve been advising and helping our clients architect, secure, build and certify SoftPOS solutions for the last 5 years. However, this has not been possible on iOS devices, until now. Speculation that Apple was looking to add contactless payment card acceptance support to iPhone grew when they bought Mobeewave for $100MM in 2020. Based on the technology acquired in this purchase, Apple has recently added contactless card acceptance capability by implementing their Proximity Reader framework to iOS 15.4, for what Apple calls Tap to Pay.
16 years on from PIN day (Valentines Day 2006) how is our relationship with PIN holding up?
Last year Dave Birch postulated that PIN was in decline and indeed no longer necessary as our mobile phones make use of various biometrics to authenticate us and our transactions, but as we often remind ourselves in Chyp, we’re not normal. UK Finance statistics tells us that whilst the use of Apple Pay & Google Pay at the Point of Sale is on the rise, the humble plastic card is still the preferred way to pay.
Everyone seems to think that MaaS (Mobility-as-a-Service) is a brand-new business model, when in fact, Transit Agencies have been providing mobility as a service for years, just without the hyphens. When I ride transit I just pay for the service when I need it or purchase a monthly pass if I expect to use it regularly. This is similar to the “as-a-Service” model that has been popularized by software companies who moved away from the license model where users pay a one-time fee to purchase the software. They now offer a subscription model where users pay a recurring fee to use the software. I’ve ridden transit for many years and have never had to buy a bus or train. Sounds like Mobility-as-a-Service to me.
The human society is now at crossroads – demanding changes in our lifestyle, health choices, economics, and civil liberties. These changes are accelerated by climate change, political response to the pandemic, the need for racial and gender equality, human migration, and of course, a few break-through technologies such as digital automation, data analytics, and machine-learning (AI). So where are we heading? The call for “Great Reset” has been reverberating since the past few years and is now getting louder and louder. This was the topic of the virtual fireside chat by two visionaries on our Tomorrow’s Transactions webinar, Brett King and Dave Birch, discussing the societal and technological changes that are foreseen in the next few decades. This conversation was centered around Brett King’s (Richard Petty, co-author) book, “The Rise of Technosocialism” and aligns with Consult Hyperion’s engagement with think tanks on global issues. Our aim to is separate foresight and facts from fiction in trying to understand the trends in the market that our clients should watch-out for especially in payments, banking, transit, digital identity, and information security.
Our overriding theme of this year’s Live5 is interoperability which will lead to inclusion. Whether this is in payments or transit, identity or as a generalised trend what we’re seeing is a collapsing of the barriers between silos. In some areas this is happening more quickly than in others.
Victoria Saporta, BoE executive director for prudential supervision, has said recently that minimum resilience requirements should be required for the tech giants’ (and others’) hosting services, before they may process and store banking data. We strongly support these comments. We have identified this issue as one of a number of new risks arising from modern financial systems architecture, in recent Structured Risk Analyses that we have carried out for financial and retail organisations in North America, Asia-Pac and EMEA.
EMV is at the heart of global payment card processing. As a specification it governs the processing of billions of transactions globally, with the vast majority of those flowing through the international payment schemes. As a technology it has been incredibly successful, reducing fraud levels everywhere it’s been introduced and its extension into contactless payments is now the fastest growing area of face-to-face payments. The idea that EMV might soon be obsolescent seems far-fetched, to put it mildly, but there are reasons to believe that its hegemony is under threat.
Card issuing seems to be hot right now. Despite the rise of alternatives to card payments, many Fintech’s appear intent on adding payment cards to their product portfolios. And it is not just the “me too” start-up banks.
For example, some international remittance services are adding payment cards to their offerings. This allows customers to spend the money they receive directly but also means that customers do not withdraw funds immediately upon receipt. This extends the customer relationship adding value to both the customer and the Fintech.