French consumers prefer fingerprints to NFC

A survey has found that French consumers are more interested in the idea of using their fingerprint to identify themselves when making a payment than in using a mobile phone for the purpose.

69% of the 1,008 people surveyed by Ifop for Wincor-Nixdorf said they were either very or quite in favour of replacing PIN codes with fingerprint biometrics at the point-of-sale, and only 36% were either very or quite in favour of using an NFC phone to make a purchase. 39% were quite opposed to the idea and 25% were very opposed.

Only 6% of those surveyed said they were definitely ready to change their mobile phone to one that allowed them to make NFC payments. A further 22% said they probably would change their phone for an NFC device while 31% said they definitely would not and 41% said they probably would not.

The survey findings indicate that French consumers are now less willing to adopt NFC payments than they were a year ago. A similar survey conducted by the same organisations last year found that 8% of consumers were strongly in favour of the idea, compared to 6% this year, and 19% were strongly opposed, compared to 25% this year.

Germans warm to NFC

German consumers are increasingly positive about the idea of making payments with contactless cards and NFC phones, a new survey conducted for Euro Kartensysteme has found.

Overall, 43% of respondents to the survey of 1,040 Germans aged 18-59 said they could well imagine making contactless payments in the future. Acceptance levels vary between different contactless payments technologies, however, with 58% saying they would make a payment with a contactless debit card, 50% would use an NFC phone and 41% would use a contactless credit card.

The most popular types of contactless purchase envisaged by respondents were parking (58%), public transportation (55%), petrol stations (54%), shopping in general (42%) and grocery stores (37%).

"Until now, the Germans have been more cautious compared with other nations when it comes to cashless payments," the survey findings conclude. "Now there are signs of a turnaround."

Wireless carrier T-Mobile USA announced it will offer Square's credit card readers in select retail stores.

"The success of our small business customers is important to us," said Matt Millen, vice president of small and medium business sales at T-Mobile, in the announcment. "Formerly 'cash only' small businesses can now simply and cost-effectively accept credit cards with their smartphone using Square, giving them an easy path to growth."

T-Mobile said it's the first wireless carrier to offer Square credit card readers in stores. The reader has been available at retailers like Walmart and Best Buy since last year.

Square's mobile POS is aimed at giving small merchants who work in the field the ability to accept credit cards using their smartphones. The app, when coupled with the credit card reading dongle, turns iOS and Android devices into credit card terminals. The company recently announced it had signed 1 million small business customers.

MasterCard reveals roadmap for our electronic payment future

MasterCard Introduces U.S. Roadmap to Enable Next Generation of Electronic Payments

MasterCard today introduced a comprehensive roadmap focused on advancing the U.S. electronic payments system.   

The roadmap, which includes the path for migration from magnetic stripe to EMV technology currently available on “chip” cards, will serve as the foundation for the next generation of products and services developed to enhance the way consumers pay.   
As payments continue to evolve to include new devices and new channels, such as mobile and eCommerce, the roadmap takes steps to address how consumers really shop, providing them greater security and control in their payment choices and the potential to seamlessly integrate loyalty programs and offers into the purchasing experience.   
“We’re moving toward a world beyond plastic, where consumers will shop and pay in a way that best fits their needs and lifestyles with a simple tap, click or touch in-store, online or on a mobile device,” said Chris McWilton, President, U.S. Markets, MasterCard. “Our roadmap represents a transformational shift in the approach to payments and is not simply about EMV, chip and PIN. We’re focused on readying the ecosystem to drive future innovation and provide new consumer experiences to enhance the value of electronic payments. ”   
Defining the Framework
Elements of the MasterCard roadmap include:

• EMV – Solidifying EMV as the foundation of the next generation of payments
• Immediate focus on acquirer infrastructure – Working with acquirers to ensure infrastructure readiness by April 2013
• Encouraging greater security and cardholder verification – Providing consumers with greater control and to reduce fraudulent transactions
• Provide benefits for merchant terminalization – Providing true financial benefits for merchants as they implement EMV-compatible terminals
• Cover all channels – Addressing all touch points where consumers will interact with MasterCard, including ATMs, the physical point-of-sale, online and mobile commerce
• Commitment to leadership and collaboration – Fostering industry collaboration to deliver the next generation of payments into the U.S. marketplace

In implementing the roadmap, MasterCard will maximize the technology advancements and investments the company has made over 45 years to benefit the payments ecosystem.
“Customers from across the payments ecosystem have been asking for a roadmap,” said McWilton. “We believe we’ve provided issuers and merchants with a vision to ‘future proof’ their businesses and the flexibility to manage their technology decisions to best meet their goals and priorities.”   
Foundation for Growth and Enhanced Security

In the increasingly digital world, transactions will get smarter. At the heart of this is dynamic authentication, where each transaction incorporates unique information, making it virtually impossible to replicate and reducing the risk of fraudulent transactions.
As issuers evolve their offering and merchants upgrade their terminals, the payments system will become more secure as this dynamic data is introduced into the payment transaction. MasterCard’s roadmap strongly encourages the adoption of the most secure technologies available.
“Consumers deserve a great experience any time they use MasterCard products,” said Ed McLaughlin, Chief Emerging Payments Officer, MasterCard. “As the industry invests in the upgrade to EMV in the U.S., we now have the ability to enhance the consumer experience and the security of a payment, regardless of the device – contactless card, mobile, eCommerce and technologies still to come.”   
Alignment, Collaboration and Leadership for the Road Forward
In its roadmap, MasterCard supports the need for the payments ecosystem to be aligned regarding the implementation of EMV standards in the U.S. The company has indicated it will support current industry timelines in an effort to minimize disruption and to maximize investments across the payments ecosystem.   

MasterCard was part of the original group that created the EMV standard and has supported the successful migration to EMV-based payments in nearly every major market globally. The company’s continued investment in advancing these infrastructure standards has provided insights and expertise to guide the industry in advancing payments security and convenience.   
“The shift to dynamic data in the transaction process will help ensure greater consistency, security and functionality between the U.S. region and the rest of the globe,” said George Peabody, director, Emerging Technologies Advisory Service, Mercator Advisory Group. “Merchants and issuers need a clear and consistent roadmap for payment card security and innovation. MasterCard’s approach, starting with EMV, will benefit consumers and the industry.”   
Additional detail on the roadmap and implementation activities will be provided to MasterCard customers in the coming weeks and months. In the meantime, initial resources can be obtained at www.mastercard.us/mchip-emv.html.

It pays to innovate

What next after Sepa? A comprehensive study of payments innovation in the European Union, the United States, Australia, and Canada.   This Working Paper from the European Savings Bank Group presents a comparative picture of what policy makers and regulators in markets at comparable stages of evolution have to say about payments innovation, what models academics could formulate and what conclusions they draw, what aspirations are expressed and what solutions are introduced and adopted by the supply and demand sides of the market.

Download now - 1.5 mb (PDF File)

Austria's RBI preps mobile NFC roll out

Austria's Raiffeisen Bank International (RBI) is preparing to introduce a contactless mobile payments service.

Working with Visa Europe and Cardis, RBI says its CardMobile service will be introduced in an unnamed Austrian city during the second quarter. The bank is also set to start issuing V Pay contactless cards.

CardMobile will see customers download an app and install a microSD card in their handset - initially just iPhones - to enable them to make low value contactless payments at the point-of-sale.

RBI says payment credentials are stored in the phone in the chip, which it provides and has the same security level as a bank card.

Gerald Kubu, head, card service, RBI, says: "CardMobile provides an attractive alternative to cash, as it does not require customers to manage any cash or electronic wallet balance, or to look for terminals to reload their card. At the same time, merchants will find the low costs attractive."