Exciting Innovations in Card-Present Payments

It can be hard to adopt a new concept when you haven’t yet got your head around the one that you’re using. Many people find that technology is moving at a rate that not everyone can keep up with, and this applies equally to our current payment options. 

Mobile payments, apps, wallets, contactless cards, phone payments, EFTs – do you know how all of these work? 

While it can seem intimidating, we feel that the galloping innovations are incredibly exciting – once we discover how they actually work, of course.

Of particular interest to us are “card present” payment innovations.

Card Present Payments

Card-not-present fraud is a fruitful gateway for criminals who have developed dozens of nefarious ways to get between you and your card and is said to cost merchants and banks dearly.

However, card-present systems are not invincible and also require some agile security measures to maintain the safety of the user and the merchant.

Contactless Cards

The advent of contactless cards back in 2007 was considered something of a novelty, but this system has really found its feet and is a common and popular payment option. (Especially with the arrival of COVID.)

Your smart card communicates with a POS card reader using short-range radio frequency providing a super-fast and secure connection with your bank. Over a certain limit, a PIN will be required for additional safety. 

When you consider that too many cards are cloned by using POS devices or ATMs which have been tampered with, the contactless card option is a welcome relief. 

2-Factor Authentication

Double the security, double the peace of mind. Most financial institutions have offered the option for customers to enable 2-factor authentication for their card transactions.

Whether you’re drawing cash, paying for something online, or simply getting your groceries, your phone will prompt you to accept the transaction before granting access to your hard-earned funds. This simple method is an efficient way of maintaining control over your card, no matter where it is. 

Biometric Readers

Biometrics in card-present payments are being developed as a fool proof and error-free way of confirming identity. 

Instead of entering a PIN, you would use your fingerprint to confirm your purchase. PINs can be decrypted by certain software and patient criminals, but your fingerprint is, thankfully, your own. 

Interestingly, some banks felt that introducing biometrics as a security option for their customers may not be received well, perhaps considered an invasion of privacy what with the general resistance to giving out personal information. 

However, it appears that Baby Boomers are showing a positive interest in the use of biometric cards as an alternative to remembering a PIN. 

We’re certain that this innovation will be gratefully received by all of us who tend to go blank once we’re at the teller!

Of this, Inpaymentsmag.com says, “Consumer preferences say 93% prefer biometrics over passwords, and consumer experience says there is 70% less abandonment rates with biometrics.” 

Further Payment Innovations

Payment options are splintering off into fascinating areas, some of which are more at home on the sci-fi channel.

Pulse Wallet

Trendhunter.com says, “The Pulse Wallet lets you scan your wrist and make payments without ever having to reach into your pocket for a card.
“Initially you have to sync your credit card to your palm reading for it to work but after that, any time you hover your hand over the laser you can make a payment. This is sort of like that Justin Timberlake movie ‘In Time,’ but instead of giving away time, you do actually use real money.”

Card.io

A card-scanning app on your phone takes a picture of your card and delivers authorisation for your online purchase. Not terribly secure right now, but an interesting way forward.

Square Card Case

Another mobile app which uses the customer’s voice to authenticate payments.

Xapo Debit Card

This allows you to make payments on a card linked to your Bitcoin account, making cryptocurrency a more accessible payment option for many.

Dipjar

This trendy little innovation allows you to pop your card in for a quick and easy way to tip your server. Considering fewer of us carry cash, this is a welcome option for hospitality staff.

For merchants, we understand that data security is paramount even when accepting card-present payments from a customer. Staying safe and secure when there is always someone waiting in the wings to take advantage of any chinks in your armour is a challenge. However, we’re here to help. 

For more information on secure card payments and data connectivity, please feel free to contact the Huge Connect team.