10 April 2016
Contactless Payments Puts Purchase Power at Your Fingertips
By Vasily Bernshteyn and Steve Pscheid
Bankless Times features a guest post Vasily Bernshteyn, the payment systems expert at DataArt, and Steve Pscheid, Head of Munich office, who provide an overview of contactless payment technologies that promises increased speed and convenience, making payments seamless.
“Deloitte predicts that by the end of 2015, five percent of the 600-650 million near-field equipped (NFC) phones will be used at least once a month to make contact in-store payments at retail outlets. Mobile device industry giants are rushing to get into the market, to establish market share dominance in this fast-growing sector.
To enable contactless payments on mobile devices, there are two methods to secure payment card information. Apple Pay works with its proprietary secure chip Secure Element (SE) which is embedded into an iPhone. Android Pay supports both SE and Host Card Emulation (HCE).
If you ask our opinion – we definitely support the SE approach, as it allows utilization of one of the main contactless payments advantages, payment speed. Because there is no need for an interaction over the Internet, it works faster. Another advantage is that it doesn’t cost anything for mobile data exchange when a device is in roaming. We believe that the future of payments is in biometric authentication. Will it be a fingerprint, iris or DNA sensor? I believe that in the near future you won’t need a card to make a small transaction. You will be able to just tap a device with you hand, it will recognize you and then charge your account automatically. Sounds like sci-fi? Well, today it is, but who knows what new payment technology will appear tomorrow.”