Tag Archives: Near Field Communication

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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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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Scan vs. Swipe: The Benefits of NFC Payments

January 19, 2015 Abtek Leave a comment

With its Apple Pay product, Apple is kick-starting the scan vs. swipe revolution that credit card and mobile wallet companies have been trying to usher in over the past few years. Scanning, which allows brick-and-mortar businesses to be more competitive with ecommerce ones, was made possible through the development of near field communication (NFC)—a technology that allows two devices to communicate and exchange information with one another wirelessly.

Stores and businesses equipped with NFC technology can scan a customer’s card or smartphone for payment instead of swiping their credit card through POS systems. So how do NFC payments benefit you and why are merchant services companies promoting it?

Ease of Use

NFC is easy for both retailers and customers to use. Set up and installation is simple and your merchant services provider can answer any questions you have. Consumers simply scan their credit card or smartphone for payment. For smartphone users, there’s the extra benefit of not having to carry multiple store and credit cards in their wallets. They can pre-load all payment information to a mobile wallet app on their smartphone.

Cost Reduction

Businesses that want to offer NFC payments as an alternative to traditional credit card processing will have a one-time cost of purchasing the readers. Readers are reasonably priced and can be obtained from your merchant services company. Reduced paper product use will save you money and attract customers who prefer to do business with environmentally conscious companies. Aside from the purchase of the reader, NFC payments can cost you less annually than standard credit card processing.

Payment Processing on the Go

Since there are no paper receipts requiring signature, payment processing via NFC is much faster. Businesses equipped with NFC readers can handle more customers in a day than those with standard POS systems. Customers who like the ease of online payments will be drawn to businesses that offer self-service NFC readers at their checkouts. Service professionals and salesman in the field who have mobile merchant accounts can also take advantage of NFC.

Advertising and In-Store Marketing

NFC lets customers quickly and easily redeem coupons and gift cards, and add to loyalty reward programs—benefits that are unavailable with traditional credit card processing. Besides these wins for customers, you can use NFC to offer discounts for and promote your products and services. Retailers can also take advantage of NFC’s in-store marketing capabilities. As customers near certain products or areas in a store, NFC can send targeted coupons or product information to their mobile devices. Through various mobile programs and apps, customers can trade discounts and offers with other users.

Improved Security

Magnetic stripe readers are subject to counterfeit cards and skimming. Enhanced security technology that can eliminate these types of fraud is compatible with NFC’s wireless communication, but not with magnetic stripe readers. Reduced fraud means fewer chargebacks and more profits for merchants.

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

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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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Ease of Use

Cost Reduction

Payment Processing on the Go

Advertising and In-Store Marketing

Improved Security

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Credit Card Processing and Merchant Account Solutions