For the past few years, the US payments ecosystem has focused predominantly on one of the biggest changes in industry history: the shift to EMV. But with October 1st and the fraud liability shift in our rearview mirror, all major financial institutions have deployment plans well underway and are looking down the road to see how EMV enables future technologies.
So what exactly does the future of payments entail? And more importantly, how can we secure it?
While EMV wipes out fraud at the point-of-sale, hackers will continue to find the weakest link in the payments chain, shifting their attention away from the physical to online purchases. In order to secure the card-not-present (CNP) channel, something has to change. Literally.
Recently launched, Dynamic Code Verification (DCV) replaces the three or four-digit security code on your card with a tiny screen – similar to the screen of your Nook or Kindle – where the code changes every twenty minutes. Even fraudsters can’t copy and reuse information that quickly, and such a simple change can maintain a familiar experience for consumers without compromising security.
With the growing desire to have any and everything at your fingertips, DCV can also run on your cellphone, securing your payment information and generating new codes for all m-commerce purchases. But there’s more in motion to secure the mobile world.
Gemalto’s Trusted Service Hub (TSH) was developed as the central platform for secure mobile payment. Service creators – from banks to grocery stores to transportation systems – can plug their services into the Hub and then access customers through their devices. By overcoming the complexity of multiple networks and by integrating with frameworks like TEE and HCE, carriers and device makers can instead focus instead on delivering the best-in-class mobile security to millions of users.
And everything in between…
But the most talked about new payment trend now that EMV deployment is well underway centers around contactless payments. Combined with the advanced security of EMV, contactless payments are quick and convenient, keeping checkout lines short and customers happy. And consumers are actually reported to spend 53% more on their contactless card than others, making issuers and the economy happy too.
The innovation for the payment industry is by no means coming to an end. Instead, EMV acts as the foundation upon which the future of payments is built.
Gemalto is securing the next generation of trusted payments from online payments to mobile payments and everything in between. Come visit us at Money20/20 to learn more.