The world of secure online banking – European experiences0
Banks throughout Europe are using digital security devices to secure eCommerce and eBanking. The former group head of chip at MasterCard, Dr. Toni Merschen, estimates that more than 30 million Europeans already have readers to use with EMV cards for online authentication.
One example is Banca Intesa in Serbia. Rolled out in 2009, this was one of the world’s first smart-card based eBanking authentication solutions based on MasterCard CAP and Visa DPA standards for OTP in EMV cards. The bank selected our Ezio Classic reader solution to protect its online customers from “card non present” fraud in eCommerce.
Banca Intesa is the leading financial institution in Serbia and is part of Intesa Sanpaolo, Italy’s largest banking group, the fifth largest bank in the Euro zone in terms of market capitalization and one of the top 15 banks in the world.
Another important first in 2009 was the widespread deployment in Germany of a Gemalto innovation called Ezio TAN, an optical OTP device that captures information off of a computer screen. With 30 million users, Germany has the largest number of online banking customers in Europe.
The advantage here is greater convenience. First, the size of a credit card, the Gemalto reader fits in a wallet along with the banking card, to offer unmatched convenience and portability so online customers can enjoy anytime, anywhere eBanking with utmost simplicity. Users just present the device in front of their computer screen and optical sensors capture the data they would normally enter from the reader keypad to carry out and sign online transactions. No software needs to be installed to use the device.
Ezio TAN is compliant with the latest advanced German Hand Held Device (HHD) standard and leverages the security of the widely deployed Secure Chip Card Operating System (SECCOS) for eBanking cards.
Visa Europe sees a bright future for the convergence of payments technologies. Peter Ayliffe, Visa Europe chief executive, said at May 2011 meeting in Barcelona, “We are seeing strong double digit growth in the usage of Visa cards across Europe, particularly with debit, and will continue to do so in the next few years as electronic payments displace cash. But during this time we can now expect to see the emergence of contactless, mobile and even further growth in ecommerce.
“To realize this opportunity Visa Europe will invest Euro 100 million annually,” he said. “The first results of this will be commercial launches of mobile payments before the end of 2011, closely followed by a major launch in ecommerce payments that will be the most convenient and secure way to pay.”