How to place payments in the future? Will we still need a credit card? New technologies advance quickly, very quickly, particularly in banking where institutions make use of these new tools to fight against fraud.
This is a real technological revolution that consumers will have to rub the coming months or such coming years. If today’s credit card has been democratized in most countries, tomorrow, we may no longer need this plastic payment. Already, most major banks have introduced a mobile payment system, even without contact. But it is not yet widespread, including in a country like Lebanon, yet well advanced in this area.
The dynamic cryptogram
In Europe also, contactless beginning to really take off. According to the Visa payment network, 3 billion contactless transactions were made with Visa cards in Europe between May 2015 and April 2016, 140 operations per second. The use of this technology to pay for purchases of small amounts without typing the code, appear to go in manners. According to Visa, this payment today represent a transaction of 5, against a 60 there are still three years. Not only the number of compatible cards is increasing, but the terminal (TPE) also. And 3.2 million TPE equip traders in Europe, says Visa. It also notes that 165 million cards via its network are equipped with the technology in Europe. Nothing on the scale of France, it circulates 25.3 million.
While they were slow to get familiar with contactless payments, consumers will, in a short time to learn about other technologies.
Credit cards will offer a second youth, particularly in the fight against fraud. To be effective and better protect themselves, banks therefore rely on technology. Tomorrow it could be you pay your purchases with a temporary code card or a facial recognition smartphone.
This technological makeover bears the somewhat barbaric name of “dynamic cryptogram”. What is it about? Three small digits on the back of most credit cards. Stationary far they should with this method, change after a few minutes. If Lebanon is not yet on the agenda, in other countries, more advanced, such as France, almost all banking institutions are currently testing this technology to their clients. The largest banking card manufacturers in the world, Gemalto and Oberthur, have already launched the commercialization of this technology in 2015.
Stated goal of this dynamic cryptogram? Better fight against banking fraud. A scourge that the world of finance would like to get rid of. It is also to finish convincing the last recalcitrant payment by card is impervious to scams. For this it is essential to achieve optimal security of the primary means of payment. These new cards have apparently look the same as their predecessors. A one detail: this new card has a tiny screen, wide enough to display in black and white, the three-digit security code. This security code called whenever buying on the web is “dynamic”. Equipped with an internal clock, the map will change the security code every twenty minutes. With this limited life, bank details used when shopping online have more security against hackers. If they can steal, they can be used during that twenty minutes before changing the code. One time, a priori, too short to multiply web purchases or sell the information to other crooks.
Only catch size in the implementation of this new technology: its cost. Because a piece of plastic stuffed technologies obviously much more expensive than a conventional chip card. And for now, it is unclear on who will rebound this cost … On the client, the bank or traders? Banks should decide quickly because other means of payment come to market. If this method reduces the cost of bank fraud, banks could decide to adopt quickly. Customers, themselves, could become more confident online shopping. However, a credit card holder in confidence is a consumer spending.
Specialized in financial technology startups are scrambling to innovate and launch new payment methods, including using smartphones.
Other technologies are also in ambush. Of these, biometric technologies using body elements (digital, voice print, etc.) that could definitely send forgotten the good old bank codes. To pay, customers must approach his smartphone payment terminal equipped with contactless technology and validate by his fingerprint. Its banking data is secured via a cloud, and replaced by single-use data. Finally, a cloud bank card will be generated for each payment.
In the future, we should also be able to pay only way to imprint his voice … this time. The user will have to save this voice reciting a phrase repeatedly. He will then enter their bank details, which generates installing an application, called eg Talk to pay on its Internet browser. When bought, the user will be called by his bank who asked to repeat a sentence. All these advances will each find its place, both from banks as customers.
A ring for contactless pay
A new innovation will be made public on the occasion of the Rio Olympics. Visa is one of the official partners of the event, the network has developed an amazing accessory for contactless pay: a simple ring.
This ring contains as a technology antenna and a chip developed by Gemalto. The outside of the ring is in white and black ceramic and the object is water resistant to 50 meters. It requires no charging.
In appearance simple, this ring will allow its holders to make purchases simply by approaching the payment terminal. Visa has planned everything, even to produce twenty different sizes, which will be tested by employees and partners of the bank. Forty-five athletes will also sponsored and wear the ring. In case of loss, a smartphone application allows users to disable the ring. For now, it is only a prototype which the general public will not have access. Maybe in the future.
Online banking fashionable
The latest report of Arabnet network, on the state of online banking in the Middle East, reveals that 54% of Lebanese have already adopted banking scanned. Lebanon, however, is only fourth position in terms of penetration rates in five countries (Saudi Arabia, UAE, Egypt, Lebanon, Jordan). Saudi Arabia is leading with 75%.
However, these data are an encouraging figure for the sector.
For the five countries studied, the study reports that online banking (Internet and / or mobile) are used by 62% of people with a bank account.
Customers of these services claim to be motivated by the convenience of online and access 24h / 24 and 7/7. The most used service remains the consultation online accounts, while the financial benefits of these services still face few followers.
Another finding of the study Arabnet, the fact that most users have a high level of income, they are more likely to use a variety of digital products.
This attraction confirmed for online services does not mean that the sacrosanct agency counters will disappear. And particularly in Lebanon where 75% of frequent visitors flock to their agencies. This would be a matter of trust and security for online transactions where the Lebanese remain cautious.
The cash is not in any case shelved since in Lebanon, 53% of transactions are still carried out in liquid, against 43% for credit cards, 23% for debit cards and 17% for checks .