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MYPINPAD launching study to uncover the power of PIN on mobile at MWC

London, Barcelona, 13th January 2017 – Marking its presence at Mobile World Congress 2017, MYPINPAD, an enabler of multi-factor authentication for unsecured touchscreen devices such as mobile phones and tablets, will launch an exclusive new whitepaper examining the role and potential of PIN on mobile devices to authenticate transactions.

2017 will see significant growth and adoption of mobile payments. In Europe alone the number of consumers using a mobile device for payments has tripled from 18% to 54% since 2015[1]. The use of PIN to authenticate these transactions on mobiles is imminent.

For bricks and mortar stores, the growth of mobile points of sale (mPOS) to improve customer experience is continuing. Research earlier this year suggests that, by 2021, 20% of all retail transactions will be done on mPOS and that one third of all POS devices will be mobile.[2] The potential of PIN on mobile has never been clearer.

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The further development of token security, what’s next?

Recently, the payments industry received news that Visa and Mastercard are teaming up to share tokenised credentials across their digital wallets (Masterpass and Visa Checkout). With the objective of making their wallets thrive, both schemes have committed to making them open and interoperable and to support multiple modes of use for consumers, e.g. in-app, online and in-store.

The move into a more collaborative and integrated payments industry is no doubt a good example for others members of the ecosystem. Championing new ideas and best practice to help mobile commerce grow, develop and become more secure in the industry should be celebrated.

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Why should we be interested in consumer trust?

Consumer trust is the absolute bedrock on which digital commerce is based; it is absolutely critical. If consumers don’t trust the processes or new implemented technology, they won’t use it.

This is the reason why we are currently engaged in a social media sourced survey looking into consumer trust in digital transactions. We would, of course, be pleased if you could take five minutes to take part.

Our survey takes a particular focus on banking and financial transactions and with very good reason.

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Fight false declines and beat Black Friday blues

Black Friday is one of the biggest shopping events in the calendar but recent research suggests false declines could be harming merchant profits, especially at such sales boom times[1].

A false decline is when a merchant or issuer security systems flags a non-fraudulent transaction as fraudulent and, thus, refuses it.

The value of false declines per year now stands at $118bn and this is more than 13 times the $9bn lost annually to card fraud[2]. It has been estimated that one in six cardholders experienced a false decline because of (incorrectly) suspected fraud[3].

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Global fraud rises again

Figures from this month’s Nilson Report show that global card fraud figures reached $21.84bn in 2015 and is predicted to keep rising. These fraud losses come from a number of sources including counterfeit card fraud, CNP fraud, “friendly” fraud and fraudulent applications.

Ecommerce continues to boom across the world at unforeseen rate. WorldPay recently predicted that global ecommerce figures would hit $2.4tn by 2019. It’s an incredible prediction but if recent history is anything to go by, that figure will no doubt be higher by 2019.

There does then, seem to be a dichotomy in ecommerce. Fraud is growing at a huge rate but it is not impacting on the growth of ecommerce. Consumers are still flocking to laptops and mobile to shop, transact and live their financial lives. It would seem that fraud is not having an impact on the popularity of ecommerce. At least, not yet.

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Winning the business of the millennial generation

There is no demographic being wooed by businesses quite like the millennials. The 18-29 generation is tech savvy, sophisticated, cynical, difficult to market to and, critically, the professionals and spenders of today and the future.

It is little surprise then, that publications are awash with articles and reports on how best to engage with this generation. A recent example here looks at what this generation supposedly wants from banking.

All very interesting and informative but one thing the article doesn’t cover is how the millennial generation like to interact, not just for banking but for commerce in general.

The answer is, unsurprisingly, online.

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Bringing trust into Indian mobile payments

A report out this week has predicted that India will see a tenfold increase in digital payments between now and the end of the decade. That will see a rise to $500bn annually and see the GPD of India rise by 15%. However, unless more trust is built between consumers and banks, this prediction might not come to pass.

Payment industry commentators have often pointed to economies such as India and China as places of great innovation and progress. Just as nature abhors a vacuum, so does economics. Where there is a gap in the market, it will be filled. And this is what has happened in countries such as India where mobile technology has offered financial services to those who previously lacked them.

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Open Banking and PSD2 Uncertainties

The use of APIs in banking has largely been limited until recently, mainly due to regulation and security. However, European banks will soon be using APIs to provide access for third-party providers, as one of the many changes required by the upcoming the Second Payment Services Directive (PSD2).

A new report by PwC highlighted that banks are concerned that these changes will cause them to lose control of their customer interface.[1] A vast majority (88%) of the banks surveyed in the report believe that PSD2 will have an impact on their business and many see it causing them to change their strategies. Despite the uncertainty and the apparent risks, 44% are planning on providing an open bank offering, with 66% intending to integrate foreign products or functionalities into their own digital offering.

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Cultivating Consumer Trust

To get ahead in the competitive ecommerce landscape, merchants have invested hugely to provide a seamless and frictionless user experience, with speed and convenience the main objective. The success of brands such as Amazon and Uber, which lead the way in user experience, suggests that consumers have embraced frictionless, one-click payments.

However, there has been a lot of recent press reports about whether online businesses compromise the security of consumers   to improve user experience.

If so, are consumers aware of this trade-off? It also makes us question if we have now gone too far, and whether consumers would actually welcome and feel more positive towards a brand with more visible security measures.

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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.

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