Category Archives: Mobile Wallets

The Mobile Wallet War

November 11, 2015 Abtek Leave a comment

Mobile wallets continue to gain popularity among consumers, but they’re struggling to gain wide-spread adoption amidst a market of competing platforms. A survey by Trustev showed that only about 20% of compatible iPhone users and 14% of compatible Galaxy users have ever used the mobile payment feature on their phone.

So what’s holding people back? According to recent reports, the top challenges facing mobile wallet adoption are fear of identity theft (68%) and merchant acceptability (33%). But, as security technology continues to improve and more and more merchants upgrade their POS systems, we expect these concerns to dwindle in the not-so-distant future.

With each new mobile payment platform launch, the payment landscape is gaining complexity. To help you get up-to-speed on the latest and greatest in mobile wallets, we’ve provided a comprehensive list of the current options and the pros and cons of each platform.

Apple Pay

Arguably the most popular mobile wallet platform to-date, Apple Pay, is a payment system that allows users to make purchases via their smartphone by hovering it near an NFC-enabled credit card terminal.

Pros: Apple Pay is accepted at more than 700,000 retail locations and is supported by 2,500 banks and credit card issuers. Transactions made through Apple Pay are tokenized, which maximizes data security. A fingerprint scanning feature also boosts security.
Cons: The provisioning process for adding a payment card to an Apple Pay account lacks security, which is causing credit card thieves to turn to this platform to make fraudulent purchases. Additionally, Apple Pay is not accepted at Wal-Mart.
Compatible Devices: iPhone 6/6s, 6/6s Plus and Apple Watch for in-store purchases and iPad Air 2, iPad Pro and iPad Mini 3/4 for online purchases

Android Pay (Previously Google Wallet)

Android’s answer to Apple Pay, Android Pay is a similar platform in which users can make payments from their smartphones to an NFC-enabled terminal.

Pros: By the end of the year, Android Pay is expected to be accepted at just as many stores as Apple Pay (more than 700,000) as well as in a large number of apps. The platform, powered by Google, also uses the secure payment process of tokenization.
Cons: Fingerprint scanning is not available on older Android phones.
Compatible Devices: Android phones that have NFC technology

Samsung Pay

Samsung Pay is a payment app that allows users to complete transactions via NFC connection or magnetic stripe.

Pros: Users are able to make mobile payments at terminals that are not NFC-enabled. The phones are equipped with technology that allows them to be “swiped” like a magnetic stripe card, making Samsung Pay is the most widely accepted mobile wallet.
Cons: The magnetic stripe feature doesn’t always work as well as intended.
Compatible Devices: Samsung Galaxy S6 and Samsung Note5 or later

Chase Pay

JP Morgan Chase has partnered with MCX and is expected to launch a new mobile wallet platform, Chase Pay, in mid-2016. Instead of using NFC technology like its competitors, Chase Pay will generate a unique QR code for each transaction that the cashier can scan.

Pros: Not all terminals are equipped with NFC technology, so the fact that this platform uses QR codes will significantly increase its acceptability. Additionally, since Chase has partnered with MCX, the wallet may have an edge with retailers who are resisting Apple Pay, such as Wal-Mart, Target, Best Buy and Shell.
Cons: The QR code process may not be as simple and efficient as competing NFC methods.
Compatible Devices: The app is expected to work with most Android and Apple phones

On top of these mobile wallets, other digital platforms, such as Snapchat and Facebook, now enable users to send money via personal message. With this rapid expansion of digital and mobile payment capabilities, the near future of the payment industry holds a lot of promise for change and growth. Stay tuned on the latest industry trends by following Abtek on Facebook, Twitter and LinkedIn.

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Breaking News, Mobile Wallets

Featured on Entrepreneur: Tami Cohorst Discusses Mobile Loyalty Programs

August 4, 2015 Abtek Leave a comment

Vice President of Abtek, Tami Cohorst, recently discussed mobile wallets and the future of mobile loyalty programs on Entrepreneur, a prominent online resource for business development news.

She writes:

“What many merchants don’t realize is that mobile wallets can also be used as strategic marketing tools to help increase their bottom lines. The solution is in mobile loyalty programs.”

Find out how this mobile wallet trend will effect business loyalty programs on Entrepreneur →

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Mobile Wallets

How Can Merchants Leverage Mobile Wallets for Marketing?

June 19, 2015 Abtek Leave a comment

With Apple Pay and similar technology becoming the norm and customers warming up to mobile wallets in droves– approximately 28 percent of smartphone users made a mobile payment last year–many merchants may need to think deeper about how mobile wallets can double as marketing strategy.

The most obvious reason why merchants offer mobile loyalty programs is to give customers incentives to return their businesses. But there are a number of other perks, including:

Customer retention is always good for boosting the bottom line, but studies have shown that a mobile loyalty program can also boost extra sales among loyalty customers. Kohl’s loyalty customers, for example, average two additional trips to the store and spend $80 more than non-loyalty customers over the course of a year. Plus, mobile loyalty programs require less operational management than a paper-based program, which will ultimately lead to reduced operational costs.

Stand Out From the Crowd

Loyalty programs are an excellent way to differentiate yourself—and having a mobile loyalty program gives you an even bigger edge in the marketplace. Consider what your competitors are doing for their loyalty programs and figure out a way to make yours even better!

VIP Treatment

Consumers want their experiences to be enjoyable and they want to feel as though they’re valued. Loyalty programs help to make both of these criteria possible. They open the door for more communication between the retailers and the customers during checkout. Loyalty programs also give loyal customers rewards for their patronage, making them feel appreciated.

So, What’s Next?

The next step in mobile loyalty programs, according to experts, will be to integrate them with leading mobile wallet providers. Up until this point, consumers have been forced to use mobile loyalty programs within each store’s individual apps. In the near future, we can expect to see these wallets begin to not only implement store loyalty programs, but ultimately become a platform for integrated, real-time marketing.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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EMV® Cards, Merchant Service Providers, Mobile Wallets, PCI Compliance, Tokenization

Cheat Sheet: A Quick Reference Guide to Payment Processing Buzzwords

May 22, 2015 Abtek Leave a comment

Payment security is at an all time low and as a result, the payment industry is in process of getting a much-needed overhaul. With this rapid implementation of new rules, processes and technology, there are a lot of payment processing buzzwords that have recently entered into the industry vernacular.

As a business owner, you’re busy with your day-to-day operations, so keeping up on the latest payment processing news and trends is probably not at the top of your priority list. However, as these changes could eventually impact your business, it’s never been more important for you to be in the know.

To help you stay updated, we’ve compiled the following glossary of industry buzzwords for your quick reference.

EMV / Chip-and-Pin

EMV is the future of credit card processing, although it’s not exactly so futuristic anymore. If you’re not already aware of the EMV payment revolution happening in the United States, you can read up on the basics here. In a nutshell, over the course of the next few months, banks will begin to roll out new credit cards in an effort to phase out insecure magnetic stripe technology. These cards will be embedded with microprocessor chips that will allow for more secure transactions. But the benefits of these “EMV” or “chip-and-pin” cards won’t come to fruition unless business owners take action now and update their payment terminals.

PCI Compliance

PCI compliance is a term often shrouded in myths and misconceptions, but it isn’t all that confusing once you break it down. PCI is a set of 12 requirements that all merchants, no matter the size or industry, must meet to ensure a secure environment for credit card transactions. If you’re not sure what’s required of your business in order to establish compliance, you’ll want to check in with your merchant services provider or visit the Security Standards Council website.

NFC

Near field communication (NFC) is the technology that enables wireless data transfers between two devices in close proximity, without the need for an internet connection. Think of it like modern-day Bluetooth. Today’s smartphones are embedded with NFC technology to allow for consumers to make payments directly from their phones by simply tapping or waving their devices over an NFC terminal.

Apple Pay

Apple Pay is a mobile application that is sweeping the nation. Essentially, the application allows consumers to transform their phones into mobile wallets by syncing credit card information from their iTunes accounts. Consumers can simply wave or tap their phones over an NFC terminal (currently available at numerous retailers across the globe) to make a purchase.

Tokenization

When a credit card is swiped through a terminal set up for tokenization, the card’s Primary Account Number (PAN) is automatically substituted with a randomly generated sequence, called a token. Merchants can use this token to handle refunds, returns and manage other transaction details. The benefit? Tokenization takes sensitive payment card data out of the picture for merchants, eliminating the need to store the data on their networks and the risk of a data breach.

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Data Breach, Mobile Wallets

Can Apple Pay Put Your Credit Card Security at Risk?

April 13, 2015 Abtek Leave a comment

Recently, the payment industry has been a-buzz about reports that Apple Pay may be suffering from security weaknesses. While Apple Pay offers simplicity and speed for users, it is really worth the risks? Or is all the discussion of potential fraud just a bunch of media hype?

Apple Pay 101

Apple Pay is a mobile payment service that allows consumers to make credit and debit payments directly from their iPhone 6, 6 Plus and the highly anticipated Apple Watch.

Think of it like a digital, mobile wallet.

Apple pay allows users to import their credit card information from their iTunes account into the Passbook application on their device. Once set up, customers can simply wave their phone over a Near Field Communication (NFC) terminal, located in a wide range of retail stores across the country, to make a purchase.

How Secure is the Apple Pay System?

When Apple Pay launched in October 2014, it was touted as being an “easy, secure and private” mobile payment solution. And up until recently, all was going smoothly. So what’s the real deal with all of this talk about fraud and security risks?

Fact: Fraudulent charges are being made through Apple Pay. Some estimates report that upwards of 6% of transactions made via Apple Pay are fraudulent.

However, it’s important for consumers to understand that Apple Pay accounts are not being hacked. The data infrastructure on Apple’s part is up to standards. The problem lies within the provisioning; a process in which banks verify the legitimacy of cards when they’re uploaded to Apple Pay. What’s happening is that criminals are taking stolen credit card information, creating iTunes accounts, using those accounts to provision Apple Pay accounts and then making fraudulent purchases.

At this time, consumers do not need to be overly concerned about the security of their credit card data once it’s uploaded to Apple Pay, but that doesn’t mean they’re not at risk. Consumers should always take extreme caution when sharing their credit card information to ensure that it’s going into the right hands.

Be Prepared! What Merchants Need to Know

The payment landscape is changing rapidly and for merchants, the most critical thing to take away from this discussion is an understanding of the importance of payment processing security.

Even the most diligent merchants experience fraud, but there are a number of ways that businesses can make transactions more secure for their customers. As Apple Pay and other mobile payment technologies become more integrated into the payment industry, more security weaknesses will likely emerge, and alternate solutions will need to be implemented.

During this time of transition, it’s important for you, as a business owner, to stay informed on all of the latest payment technologies and trends, and be sure that you have systems in place to ensure maximum security for your customers’ payment information.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Merchant Service Providers, Mobile Wallets

Will Wearable Tech Revolutionize the Way Customers Pay?

March 23, 2015 Abtek Leave a comment

The era of wearable device technology has arrived. In fact, recent studies show that approximately 30 percent of United States smartphone holders already own wearables. As technology continues to advance the development of these personal devices, there will certainly be an increase in more convenient payment options for consumers—and smart retailers are catching on.

Beyond Smartphones: Wearable Tech Offers Payment Convenience

Smartphones already offer a variety of applications capable of swiping cards, processing personal information and recording product metrics. But wearable tech may go even further when it comes to making the payment process more convenient for consumers.

While the impending Apple Watch has invoked much of the interest behind smartwatches, other high-tech wearable gadgets are being developed. For example, Disney already offers guests the ability to pay for items via MagicBand, a colorful bracelet that directly links to a personal credit or debit card. The so-called “Power Suit” allows its wearer to make payments via their clothing sleeve, through use of NFC technology. And many big-league fiscal providers, like Visa, have considered investing in creation of expansive technology to take these processes even further.

This small technological revolution has the potential to redefine the way in which consumers pay for goods and services. And as we anticipate where technology will take us in the near future, all eyes are on the coming Apple Watch and its Apple Pay capabilities.

Time Ticks Down to the Launch of Apple Watch

In recent months, the Apple Watch has single-handedly piqued smartwatch (and wearable tech) interest more so than previous rivals, like the Pebble or Samsung’s Galaxy, ever did.

Although it’s not set to arrive until April 24, the industry buzz is already undeniable. A two-part survey featured on Computerworld reflected a record 8,266 consumers placing higher interest in the Apple Watch than on the “revolutionary” Google Glass.

Tech corporations and industry gurus are taking note, and merchant services may receive a significant boost from the Apple Watch’s high flexibility towards sales processing—especially when it comes to the wearer’s ability to conveniently and quickly use Apple Pay. By offering such flexibility, smartwatches have definitely shifted from mundane “power person” ideology to more practical, professional solutions.

The Optimized Consumer and the Future of Payment Processing

Faster payment processing is always the endgame for retailers, so the wearable trend is a logical next step in attempting to near that goal. When the consumer is waiting in line for a shorter amount time, more payments are being processed, and at quicker rates. At first glance, this may appear as a minimal side effect, but the overall impact of highly optimized sales processing is astounding.

So where will the future take wearable technology and merchant sales? Likely, security will be a conservative pit-stop, as fiscal dealings are historically shaky when new technology arrives. However, if wearable tech is proven to be secure—and, if the industry begins thriving upon the shift towards speed processing—more technology may follow, and it’ll further redefine the industry.

For now, however, the wearable tech trend is still in its relative infancy. We’ll be watching to see where it takes us.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Mobile Wallets

Will Mobile Wallets Soon Replace Actual Wallets?

February 23, 2015 Abtek Leave a comment

Mobile wallets aren’t just on the horizon—they’re already here. Recent smartphone applications have facilitated consumer technology capable of making instant purchases, and the trend may replace commonplace wallet purchasing within the next five years.

Mobile Wallets: The Pros

Credit card processing is quick, and it’s reliable. However, mobile wallets—when created and utilized effectively—are incredibly convenient for consumers. Mobile wallets are incredible marketing tools, too, due to their incredible accessibility and mobile purchasing’s increasing popularity. Mobile wallets propose a slew of benefits for consumers, including:

Ease of accessibility
Consolidation of funds
Immediate coupons and savings
Customer reward programs

The above mention of mobile-accessed coupons is considerably important. An Inmar Solutions trend catcher has depicted an astounding 2.9 billion digital coupon redemption volume. Additionally, approximately 77 percent of shoppers purchased groceries from non-grocer vendors in 2013. Due to a mobile wallet’s wide market accessibility, some of the world’s most vital markets will likely hook into the trend.

Mobile Wallets: The Cons

With great accessibility comes high responsibility, and the mobile wallet may propose several problems for future consumers. Merchant services still aren’t accustomed to the change—and several providers may never be.

Additionally, the mobile wallet’s incredible accessibility may pose a problem for some spenders. If you could make a purchase with one quick tap to the phone, wouldn’t you? The following cons also exist within the evolving technology, and it may hold mobile wallets back from their full potential:

Consolidation of existing technology may cause bugs
Security risks from hacking
Access to high-limit purchases may be imbalanced against credit cards

The infamous cellphone hack scandal in the UK definitely plays upon the above worries. Easy banking accessibility may enable thievery and digitally-stored credit card information may not be safe.

It Isn’t Over for Traditional Payments, Either

In fact, mobile wallets rely upon pre-existing monetary exchange systems. Small businesses can definitely profit from the mobile wallet’s design and functionality, but they’ll need to maintain classic systems and policies to take full advantage of the technology.

Why? Mobile wallets, primarily, connect to a business’s checking accounts. For now, mobile wallets are simply “quick access doors” to business transactions. They aren’t exclusive services.

You’ll Still Need Your Wallet

Mobile wallets can’t just replace fundamental wallet contents. Your driver’s license, registration, insurance card and other important, physical documentation are still required by law. Likely, mobile wallets will never accommodate for such provisions. Simply put: Security, legality and accessibility are important—more-so than a consumer’s ease-of-access to retail spheres. Regardless of a mobile wallet’s capabilities, their boundaries end where life’s other priorities begin.

In many ways, the world still needs physical proof of monetary funds, legal accessibility, health information and other important items. Mobile wallets will definitely play an integral role in retail’s future, but, for now, the leather bi-fold wallet still has a place in your back pocket…and for good reason.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Stand Out From the Crowd

VIP Treatment

So, What’s Next?

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EMV / Chip-and-Pin

PCI Compliance

NFC

Apple Pay

Tokenization

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What’s Coming Up?

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Apple Pay 101

How Secure is the Apple Pay System?

Be Prepared! What Merchants Need to Know

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Beyond Smartphones: Wearable Tech Offers Payment Convenience

Time Ticks Down to the Launch of Apple Watch

The Optimized Consumer and the Future of Payment Processing

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Mobile Wallets: The Pros

Mobile Wallets: The Cons

It Isn’t Over for Traditional Payments, Either

You’ll Still Need Your Wallet

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Credit Card Processing and Merchant Account Solutions