84% of payment
The move away from clunky passwords is resulting in new real-time and dynamic authentication processes
professionals think security remains the biggest concern Source: Edgar Dunn, Advanced Payments Report 2016
180% increase in distributed
denial of service (DDoS) attacks 2014 to 2015 Source: tripwire, 2016
A digital evolution
C
hanges in the payments sphere are by no means over. We may have taken a technological leap in the past decade, but we are likely to see even more changes in the next.
Part of the change will come at a national level, as immediate payment sys-
tems are implemented more widely (35 countries have implemented or scheduled hard launch dates for immediate payment systems, according to CapGemini’s Top Ten Trends in Payments in 2016 report). Such systems improve the speed of transactions, reducing risk of fraud and driving business growth. Change is likely too from the Internet of Things (IoT) — the increasing
No more passwords
interconnectedness of everyday devices. It may be only a few short steps
in 2015, according to the ING International
The global mobile biometrics by fingerprint
from a home heating system that alerts you to the need to reorder fuel, to one
Survey on Mobile Banking 2016 report. Our new
recognition market is predicted to reach
that will provide a payment mechanism as well. Connected devices may soon
habits offer significant benefits for merchants,
$12 billion by 2020, growing at a compound
become commerce devices and it is vital they are secure from the start.
but pose a new challenge for the payment
annual growth rate of almost 103 percent,
industry; there has been a rise in online fraud
according to Technavio’s 2016 prediction. The
payment network Bitcoin. There are plenty of unanswered questions around
and more diverse types of fraud, with criminals
move away from clunky passwords, so often
virtual currencies — regulation is just one — but the technology behind it could
seeking out and exploiting the weakest link.
forgotten by the consumer or chosen to be
drive previously unforeseeable changes.
Technology has brought us blockchain, which has given rise to digital
But the technology to counter the threat is
easy to remember and hence easy to guess,
available. One such technology layer is biom-
is resulting in new real-time and dynamic
technology behind that will help merchants provide a more personalized
Our payment habits are increasingly being analyzed and assessed, and the
etrics; from fingerprint sensors to face rec-
authentication processes.
service, potentially deepening and changing the relationship between supplier
ognition, it enables safe and secure authen-
Not all threats involve cutting-edge tech-
tication of a consumer, and makes it more
nology; however, the theft of data can prove
and customer, and helping to ensure more genuine transactions are approved.
convenient than ever for consumers making
lucrative, whether from identity fraud or
uncertain and fragmenting landscape, an experienced and trusted voice will
digital payments.
phishing scams. As cybercrime tools become
always be valued. ■
Predicting the future is hard given the state of flux in digital evolution. In an
easier to access and utilize, small businesses
Internet of things by numbers
in particular are targets for this type of crime (nearly half of cyberattacks worldwide in 2015 were against small businesses with fewer than 250 workers, according to Symantec’s 2016
$2.1trn
3.3bn internet users
7bn
people on the planet
cost of breaches through digitisation of consumers and enterprise in 2019
10bn
connected things in use in 2016
Internet Security Threat Report). As a result, global standards bodies like the PCI Security Standards Council are working in partnership to offer help and advice to all merchants, regardless of size. Technology is changing the world of personal finances more rapidly than ever before, as customers demand a financial environment
30bn
connected devices by 2020
that is compatible with the personalized and immediate service available in other aspects of their lives. Keeping one step ahead of evolving security threats is a demanding task, but the payment industry is already meeting that challenge, with all stakeholders in the purchasing chain coming together to keep con-
Sources: Juniper research, 2015; eMarketer, 2016; TSG, 2016
6
A safe new world
sumers safe. ■
Securing the payments world
7