Consumer convenience and strong authentication

Guest blog by Neira Jones, Advisory Board Member and Ambassador, Emerging Payments Association

With the world population now reaching 7.4 billion and Gartner predicting that there will be 6.4 billion connected “Things” in use this year[1], it is undeniable that consumers’ behaviours are changing at a staggering pace.

Whilst we all strive for innovation and consumers demand more amazing digital experiences, the world of retail is changing and recent data breaches have increasingly put the safety of the consumer and the threat and cost of data compromise on the Board agenda. This is further compounded by the explosion in FinTech, from digital challenger banks to emerging payments players, and exacerbated by recent regulations such as the EU General Data Protection Regulation to the EU Payments Services Directive 2 (PSD2), which was published in January 2016, with a deadline for implementation by January 2018.

Consumer adoption of different modes of interaction (be it mobile devices, wearables, IoT, etc.) and different channels (such as websites, social networks, TV, YouTube, among others) drives the need for speed and modern infrastructures. As the world goes even more mobile and digital, the challenges faced by security professionals must not be underestimated. Indeed, the more and the faster we connect, digitise, innovate and share information, the more risks are introduced as criminals also connect, digitise, innovate and share information.

In order to thrive while remaining secure, organisations will face the challenge of combining consumer convenience with effective, strong authentication in a dynamic fast moving, multi-channel digital age.

Indeed, PSD2, with a key focus on protecting consumers and opening up access to new providers in the payments ecosystem, will drive better behaviours by increasing security and fraud prevention and notably, by requiring strong authentication and accountability for all players.

Understanding the importance of balancing convenience and security, MYPINPAD today released a unique consumer report. PIN: From Brick to Click looks at consumer confidence in PIN as a method of authentication for mobile commerce transactions.

After learning that 90% of frequent online shoppers would use PIN to authorise payment via mobile on a recently commissioned online survey, MYPINPAD decided to explore and analyse what the adoption of this form of authentication would imply for merchants, consumers and banks.

Crucially, consumer adoption of any authentication method will be key for the further secure development of the eCommerce scene. Those organisations able to contribute to the enhanced security of the payments ecosystem, without compromising convenience and which have a thorough understanding of consumers’ behaviours and preferences, will be the winners.

To download the full report click here.

[1] http://www.gartner.com/newsroom/id/3165317