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The cashless societies – where every transaction is performed digitally- are being envisioned for decades. But hardly there’s been a country that has made it a reality.  But a few of them are of course getting close to it. First, Kenya was in talks for the major uptake of mobile payments and now Sweden has become a forerunner.

Revolutionizing the banking system

Fast cash has almost disappeared in Sweden. The Swedish people have limited the use of cash to only a small portion of their day to day activities and that too is decreasing at a lightning speed. While 6 years back, 106 billion Swedish crowns were in circulation in the country’s wallet and cash registers; presently just 80 Billion Swedish crowns are in circulation. And even out of that, merely 40 to 60 percent is actually in circulation regularly.

Even if one walks through the second city of Sweden, Gothenburg, it is almost impossible to first a single shop that does not accept card payments. The locals have made it a habit to carry no coins or notes in their pockets. They use mobile money apps that enable fast, simple payments and money transfers on mobile devices.  The mobile payments apps allow real-time transactions to take place, enabling users to transfer money directly from their bank account to the any other person having a bank account, wherever they are. This has revolutionized the local banking system.

The initiatives that Sweden took to eliminate Money Laundering

A couple of factors perform as major contributors towards the rapid shift of Sweden towards electronic-only money transactions. Not only have the various businesses done away with the minimum spent rule when talked about the card transactions but also there has been a huge uptake of mobile wallets and mobile payments apps. As of the past 4 years, payments for every 4 out of 5 purchases in Sweden have been made electronically.

The Banks in Sweden are also going down the cashless path. Several bank branches in the country have almost stopped accepting cash. As per the regulation jotted down targeting money laundering and terrorist financing, at the offices, which do handle cash, the customers must explain the cash source. And, thus, any suspicious cash transaction is immediately reported to the police.

The challenges for a cashless society  

The Swedes are used to embracing new technologies. Their shift towards cashless and the replacement of physical wallets by the digital ones is definitely a good move and now it’s unstoppable. The strict guidelines about cash use have also pushed forward the uptake of mobile payments.

While Sweden is quite closer to cashless-ness than any other country on Earth; there are some concerns regarding those left behind by the transition. The homeless people, the elderly or the immigrants have great chances of struggle accessing the country specific digital payment services through mobile devices or even computers. Also, we do have a question, “Is it necessary to tool a thumb rule- Something is wrong if you pay in cash- for achieving a cashless society or for the growth of mobile wallets?”

December 9, 2015 0 comment
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MasterPass payment– the new, simple and convenient digital wallet from MasterCard- is a way of paying online with the multi-tiered MasterCard network security partnered with your own bank. MasterPass payment is the perfect blend of convenience and new age safety. It enables the storage of your payment and shipping information in a safe place by your bank enabling you to fearlessly shop and checkout with confidence at small and big retailers using all your devices, wherever you get the option of buying with MasterPass. The electronic wallet allows online payment using pre-registered debit or credit card details and personal shipping address. Taking payments to another level, it lets the user do things like scan barcodes and instantly buy items with their device, right on the spot.

Every mobile device is now becoming a shopping device and thus, MasterPass is a great way of enhancing the shopping experience, making it as simple as click, tap and touch.

The MasterPass payment suite includes:

  • MasterPass Checkout Services – It provides to the merchants a consistent way of accepting electronic payments, regardless of the consumer’s location. For the in-store scenarios, MasterPass payments support the use of QR Codes, NFC, tags and devices used at points of sale. For the online payments, MasterPass provides the users a simple checkout process which eliminates the need of entering the card and shipping details with every purchase.
  • MasterPass Connected wallets – It enables the merchants, partners as well as banks to offer their own wallets. The consumers can store the card details and address information and more securely in cloud storage, hosted by a trusted entity. The payment wallet is implying that in addition to the MasterCard cards, the consumers can also use other branded debit, credit and prepaid cards.
  • MasterPass Value Added Services– It enriches the shopping experience before, during and after the checkout. It includes more information like real-time alerts, account balance, loyalty programs as well as valuable offers and experiences.

Simple steps to get started with MasterPass

  1. Activate through your bank
    Look out for “Pay with MasterPass” logo
    3. Checkout tapping “Buy with MasterPass”
    4. Shop the world

Value propositions to merchants accepting MasterPass

MasterCard extends great value proposition to merchants accepting MasterPass. Providing the merchants with a faster and easier way to check out customers, MasterPass also provides a significant way to increase sales making minor changes to the way merchants process payments currently.

Some other examples of how MasterPass can benefit the merchants include:

  • Fostered customer loyalty – Understanding the fact that customer loyalty is important for the merchants, MasterPass has incorporated more functionality into the open wallet. It will accept loyalty cards, enabling the customers to earn points following every use.
  • Simplified shopping experience –MasterPass is an open wallet. The consumers can use card from any issuer, with this secure service. They can check out with a single tap as an easy way to pay and gain a seamless, secure shopping experience.
  • More transactions – MasterPass allows the consumers to check out with few short clicks. Often, they avoid entering extensive billing and shipping details – MasterPass eliminates this wastage of time.

Summary

MasterPass is the first global digital wallet and thus it is anticipated to bring significant changes in the mobile payment horizon. Being present in 24 countries worldwide, this payment system arrives as a collective solution to the new age payment requirements along with high level security.  Today, when a major fraction of the payment transactions are performed online, the global wallet solutions have got an unprecedented importance taking in sight the demand of convenience and security from the consumers. Within a scenario, where digital lifestyle is being wholeheartedly embraced, MasterPass payment being the first of its kind can do something that has never been seen before. Not only they are anticipated to optimize the checkout experience but also they will increase the e-commerce sales by enhancing the customer experience.

August 25, 2015 0 comment
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In accordance to the recent security breaches, the mobile payment consumers have a common question “how can I securely use mobile payments?” The emerging security threats have put a fire under the mobile payment industry for finding a solution that ensures safety of the sensitive payment information. While the techies have already flooded the market with multiple options to fight against payment data breaches, some really effective new technologies like data encryption and tokenization have created a buzz by making payment significantly more secure.

At its root, tokenization is the representation of something having a high value with a low value- the way a casino chip represents cash. Mobile payments are gradually inheriting digital tokens as inseparable part for reducing security risks associated with the highly sensitive data of user’s credit or debit card.

Introduction of tokenization to mobile payments and security follows

Mobile payment tokenization can be explained as a process of replacing the sensitive data on mobile devices with some unique identification symbols. It enables contactless payments ensuring mobile payment security by retaining the essential data information without making any compromise on the verge of its security. In this process, the data of the actual cardholder is used to complete a transaction. Following the authorization of the transaction, the sensitive data is sent to a highly secure and centralized server to be stored securely.

Mobile payment tokenization seeks to minimize the data a business requires keeping on hand. It bolsters the security of debit cards, credit cards and e-commerce transactions and at the same time minimizes the cost and complexity with the government regulations and industry standards.

How is security assured with tokenization?

  • The data is stored in riskless Cyber-Source data centers and is exchanged only in return for a safe token.
  • The tokens are generated using proprietary algorithms and are resistant to reversibility.
  • The token format fits well to the payment card data fields.
  • Tokens support almost every authenticated payment action and checkout models.

Benefits of mobile payment tokenization

  • Compliant with PCI DSS
  • Renders card data in a meaningless way to the hackers
  • Reconciles payments and chargebacks without handling the payment data
  • Automatically integrates with the Cyber-source Account updater to update the payment data
  • Minimizes payment transaction failures
  • Works with current processor and systems

How does mobile payment tokenization connect to HCE?

The Host Card Emulation (HCE) cloud-based mobile payments lead to a new horizon in the payment industry, which is presently pondering seriously around the ways to enhance the security of on-device data and the associated risk management responsibilities. Host Card Emulation places card data in the cloud storage and thus, it has become the latest hot topic that MasterCard and Visa are together working on HCE specifications. The secure element that the on-device hardware storage lacks creates the strong requirement for powerful software based solutions, capable of mitigating the risk on the sensitive card data on the phone memory. To avoid all these complexities of data storage in the on-device secure elements the financial institutions are looking forward to move the sensitive data to cloud. With the extended support from Android to HCE, in the KitKat operating system, cloud storage is no longer a distant pie. Moving sensitive data out of a phone’s secure element (SE) to cloud solves a number of problems. HCE uses multiple techniques that ensure data security, enhancing the user experience. Mobile payment tokenization has emerged as one of the most secure ways making HCE cloud-based payments secure. It protects the original PAN number from the risks of misuse.

Summary

The Mobile payment tokenization furthers the difficulties for the hackers longing to gain access to the cardholder’s data. Data Security has always been a serious concern and thus, in an era when mobiles have become man’s best companions; mobile payment tokenization would prove to be a boon for the secure payment seekers.

August 24, 2015 0 comment
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