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Apple sold 15.4 million iPads last quarter. That's more than any PC maker's TOTAL PC sales during the same quarter.
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Wednesday, March 7, 2012
Inside the Mobile Wallet: How Does it Work?
By Christopher Cox, vice-president, Product Development, First Data Mobile Solutions
In addition to providing consumers with a new way to make payments, mobile devices represent a new channel for financial institutions to communicate with their customers. The mobile connection enables financial institutions to send information such as promotional offers to their customers in ways that are more targeted and useful to the consumer. Because every active mobile device is tied to a person with unique shopping preferences, needs, and desires, customer communications can become highly personalized. This idea of connected, customized, real-time marketing presents a new opportunity and competitive challenge. At the core of this opportunity is the mobile wallet itself—a mobile phone provisioned with account information that allows its owner to use the phone as a payment device. But have you ever wondered how this functionality actually works? Here is a quick snapshot of the technologies that allow mobile phones to make payments. Trusted Service Manager: read more at the ABA Banking Journal | |||
Consumer Confidence Continues to Rise in February, According to Discover U.S. Spending MonitorSM
March 07, 2012 07:00 AM Eastern Time
Views on U.S. Economy and Finances Improve, Outpacing Spending Intentions
RIVERWOODS, Ill.--()--Consumer confidence grew again in February, driven by a more optimistic outlook for the economy and personal finances. The Discover U.S. Spending Monitor, a 4-year-old daily poll tracking economic confidence and spending intentions of nearly 8,200 consumers throughout the month, jumped 4.4 points from the previous month to 94.9. This is the highest level the Monitor has reached since October 2007.
| Highlights of Discover U.S. Spending Monitor Results | |||||||||
| December | January | February | |||||||
| 2011 | 2012 | 2012 | |||||||
| Discover U.S. Spending Monitor Index | 85.0 | 90.5 | 94.9 | ||||||
| U.S. Economy Improving | 23% | 30% | 32% | ||||||
| Personal Finances Improving | 19% | 23% | 24% | ||||||
Economic Expectations Growing, Particularly Among Men
- Expectations for the U.S. economy are improving. For the first time since January 2011, nearly one-third of consumers, or 32 percent, believe the economy is getting better. This is 2 percentage points higher than the prior month.
- While more than half, or 52 percent, of consumers rate the U.S. economy as poor, this is the lowest level since January 2011. Only 12 percent of respondents view the economy as excellent or good, an increase of 1 percentage point over last month and 3 percentage points compared to February 2011.
- More than 35 percent of men view the economy as getting better, an increase of nearly 5 percentage points over January 2012. However, only 29 percent of women share the expectation that the economy is getting better, and this level did not change from last month.
Personal Finance Confidence Reaches Pre-Recession Levels
Consumer sentiment about personal finances continued to improve in February.
- More than 36 percent now rate their finances as either excellent or good, which is the highest figure in more than a year and a jump of 2 points from the month earlier.
- Nearly one-quarter, or 24 percent, of consumers believe their personal finances are getting better. Forty-three percent view their finances as getting worse, which is 4 percentage points lower than last month and the lowest level since October 2007.
- There were fewer consumers with higher incomes (above $75,000 annually) and lower incomes (below $40,000 annually) viewing their personal finances as worse compared to last month. These figures declined by 6 percentage points to 29 percent and 3 percentage points to 55 percent, respectively. The portion of middle-class income consumers who view their personal finances as getting worse remained unchanged at 42 percent from January 2012.
- Nearly 50 percent of consumers reported they had money in their pockets after paying bills last month, the highest level since March 2009.
Consumers Remain Cautious About Spending Intentions
Consumers’ growing confidence in the economy and their personal finances is not substantially boosting purchasing intentions. While 28 percent say they plan to spend more next month, a 4-point increase from the month before, the most significant increase came from a spike in household expenses, such as gasoline and groceries.
- Spending next month on household expenses, including gasoline, is most likely to increase. More than 44 percent of consumers expect to spend more, an increase of 7 percentage points compared to the prior month. Gas prices are near the record high of $4.11 set in July of 2008, when more than 57 percent of consumers expected spending on household expenses to increase in the next month.
- Historically, the Monitor experiences an uptick in home improvement spending in the Spring. In February 2012, 14 percent indicated they plan to spend more, a 2-point increase and the highest level for the month of February since 2008.
- Nearly 10 percent of consumers expect to spend more on discretionary purchases like going out to dinner or the movies, a slight increase of 2 percentage points compared to the prior month.
- Despite the coming of Spring break for many consumers, expectations for spending on major personal purchases, like vacations, in the next month remained unchanged from the prior month at 12 percent.
Visa Europe backs Mobile Money Network
March 07, 2012 02:00 AM Eastern Time
Visa Europe invests in mobile shopping JV to drive growth of mobile money services
LONDON--()--The Mobile Money Network Ltd (MMN) today announces that Visa Europe intends to take a 15% stake in its business, which provides mobile commerce and payments services for retailers. The investment forms part of Visa Europe’s strategy to deliver increased value for consumers, retailers and financial institutions through mobile payments.
Visa Europe and MMN will implement a number of m-commerce initiatives in the UK in 2012, taking MMN’s bank-grade, interoperable infrastructure for secure, fast and simple mobile shopping to the mass market.
MMN’s instant mobile checkout, Simply Tap, allows customers to easily identify and purchase a product on their mobile. Simply Tap can be used wherever a shopper sees a product they want - in print, on outdoor advertising, in-store or online – allowing the user to make an easy, secure purchase, with products delivered directly to his or her home address. As part of the new agreement, the app will also offer a number of new offers and savings available only to Visa cardholders.
There are 130m Visa cards in circulation in the UK and £1 in every £3 spent is now carried out on a Visa card, around 80% of which is on a debit card.
Peter Ayliffe, Chief Executive of Visa Europe said: “This agreement is another step in the delivery of our mobile payments strategy. We are working with partners and organisations across the mobile ecosystem to make the future of payments a reality for consumers, for retailers and for financial institutions. By 2020, we predict that more than half of all our transactions will be carried out on a mobile device. Our investment in the Mobile Money Network will support our aim to deliver a wide range of secure and reliable mobile payment services that help our members tap into the potential of m-commerce.”
As part of the agreement Visa Europe will also take a seat on the MMN board.
Launched in November 2011, MMN and its Simply Tap service is chaired by Sir Stuart Rose as Non-Executive Chairman with backers including Carphone Warehouse, Charles Dunstone and Monitise. MMN is working with a large number of retailers and has already launched services with HMV, Goldsmiths and Thorntons and been first to market with cutting-edge technology including image recognition and transactional QR codes.
Sir Stuart Rose said: “Visa is the benchmark for trusted payments innovation on a global scale and this deal is a clear endorsement of MMN’s ability to provide a secure, innovative and trusted solution. Together, Visa Europe and MMN will enable retailers to offer their customers a simple, unified instant mobile checkout that can be used to accelerate revenues and conversion through all their sales channels. The future of retail is mobile.”
Discover Financial Services and National Payment Corporation of India Announce Strategic Alliance Enabling Increased Network Acceptance
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| Image via Wikipedia |
March 07, 2012 06:30 AM Eastern Time
RIVERWOODS, Ill. & MUMBAI, India--()--Discover Financial Services (DFS) and National Payments Corporation of India (NPCI) today announced they have entered into a strategic alliance resulting in acceptance of Discover cards and Diners Club International (DCI) cards at NPCI ATMs and point-of-sale terminals for purchases in India. It also will allow RuPay (the national card payment network in India) cardholders to utilize the Discover, Diners Club International and PULSE networks for international purchases and cash access outside of India.
“RuPay will be the premier Indian payment card scheme, offering state-of-the-art technology that is secure, robust, scalable, simple and cost effective.”
Under the terms of the strategic alliance, POS and ATM transactions by RuPay network cardholders within India will be processed on the RuPay network. Outside of India, RuPay Global Card transactions will be processed on the Discover, Diners Club and PULSE ATM networks. The long-term agreement will result in increased transaction volume on NPCI’s ATM and on their soon-to-be implemented POS network in India, as well as increased transaction volume on the Discover, Diners Club and PULSE networks. The companies are also working to implement D-PAS, Discover’s EMV technology, to offer chip-based cards to RuPay cardmembers.
The arrangement will be implemented in a phased manner. To begin with, DFS and DCI cards will be accepted at RuPay ATMs in India, followed by acceptance at RuPay POS locations. The final phase will enable acceptance of RuPay Global Cards on Discover’s global payment network outside of India.
“This partnership with RuPay further demonstrates our commitment to creating an ecosystem where local networks can thrive and offer more value and utility to their cardmembers,” said Diane Offereins, EVP and President of Discover Payment Services. “By opening up our global payments network to RuPay cardmembers, we are participating in one of the fastest growing countries for payment cards in the world. Discover and Diners Club cardmembers also will benefit from their ability to more broadly use their cards to access cash or make purchases throughout India.”
Discover’s network to network alliances include UnionPay in China, JCB in Japan, BCcard in Korea and DinaCard in Serbia. These alliances provide valuable access to Discover's global acceptance footprint and deliver value and volume to merchants and partners.
“The network-to-network alliance between DFS and NPCI eventually will result in the issuance of RuPay Global cards once the domestic RuPay cards being launched later this month stabilize,” said Mr A. P. Hota, Chief Executive Officer & Managing Director of NPCI. “RuPay will be the premier Indian payment card scheme, offering state-of-the-art technology that is secure, robust, scalable, simple and cost effective.” Mr Hota added that seven promoter banks have signed an MOU with NPCI to be part of the pilot launch of domestic RuPay cards.
NPCI’s objective is to consolidate and integrate all retail payment systems in India. Since its founding in 2009, NPCI has grown its share of ATM transactions processed to 95% of the market in India. NPCI has been promoted by banks (State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC) with the support and guidance of Indian Banks Association, the banking industry body in India.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visitwww.discoverfinancial.com.
About NPCI
National Payments Corporation of India (NPCI) is the umbrella organization of all retail payment systems in India and is set up by the banks in India with the support and guidance from Indian Banks’ Association. The organization has been mandated to build central infrastructure for payment systems like ATM Switching, Mobile Payments, Cheque Truncation System, POS Switching, 24 * 7 remittance system and Financial Inclusion transactions. The organisation has also a mandate to build a domestic card payment scheme.
Authentify Launches 2CHK: An “Always On” Out-of-Band Mobile App to Secure Online Financial Transactions
Source: Authentify, For Immediate Release
Secure second channel protects online and mobile banking customers from
man-in-the-middle and man-in-the-browser cyber attacks
man-in-the-middle and man-in-the-browser cyber attacks
CHICAGO, March 7, 2011– Authentify today introduced 2CHK™ (spoken as "two check"), an “always on” Out-of-Band (OOB) authentication service to secure online financial transactions.
Here’s how it works. The bank customer activates a small, convenient app on their smartphone or PC and links it securely to their account using voice or SMS-based OOB authentication. Once this is done, the 2CHK app is “always on” and maintains a secure channel to Authentify’s authentication service. The bank or ecommerce provider can then use this second channel and the 2CHK app to securely show customers the actual transaction details and let them approve or reject them.
The first key benefit is security. 2CHK complements online and mobile banking by providing a completely separate app and OOB channel that, due to layers of encryption, cannot be defeated by man-in-the-middle and man-in-the-browser attacks.
The second key benefit is convenience. Customers see transactions in the 2CHK app and can confirm or reject them easily. This contrasts with traditional OOB implementations that send a one-time password (OTP) number using a phone call or text message, which the customer then re-enters separately in the online or mobile bank app.
Authentify is targeting online banking and ecommerce providers as well as enterprise IT security applications with 2CHK. In the enterprise market, 2CHK enables businesses to more widely implement more effective security for logins, identity verification or digital signature without losing productivity or inconveniencing users.
The 2CHK transaction authentication service is available immediately worldwide and Authentify offers the service to customers for fixed annual subscription fees.
Authentify is already the global leader in telephone-based OOB authentication, a proven and effective countermeasure recommended by federal authorities, regulators and leading consulting firms. OOB authentication is used by banks, ecommerce providers and enterprises to protect customers or users against sophisticated man-in-the-middle and man-in-the-browser attacks used to steal login credentials or hijack online sessions.
Authentify customers indicate that OOB authentication is a very valuable component of their authentication and risk management portfolio and they would like to do more of it. Authentify invented 2CHK to provide a mechanism to preserve the security/risk management value of OOB authentication without incurring variable transactional costs.
2CHK is the perfect complement to risk-based transaction systems because it is a true Web service (SaaS) and can be invoked with different levels of user interaction for different transaction types. The capability to add OOB safeguards within multiple layer security models fulfills industry best practices as recommended by the Federal Financial Institutions
Examination Council (FFIEC), Gartner Research, Inc., the FBI, the U.S. Secret Service and NACHA—the organization responsible for clearing U.S. online and banking transactions.
“Out-of-Band or dedicated hardware-based transaction verification uses a different communication channel to verify the authenticity of a transaction request,” said Avivah Litan, vice president and distinguished analyst at Gartner Research. “It is a valuable fraud prevention tool — as long as only the specific transaction verified or signed by the requesting user is executed (as opposed to a transaction that a criminal has overwritten with his or her own values).” [1]
“Our customers include some of the world’s largest banks, ecommerce providers and enterprises and we have been engaged with them throughout our development of 2CHK. Their feedback indicates we have created a unique solution that sets a new standard for convenient and cost-effective transaction security,” said Peter Tapling, Authentify president & CEO.
Authentify will be demonstrating 2CHK in Las Vegas and London next week:
- In booth 611 in the Fraud Prevention Pavilion at BAI Payments Connect 2012, taking place at the Mirage Hotel in Las Vegas from March 12th to the 14th
- At the e-Crime Congress, an event sponsored by Authentify, on March 13th and 14th in the Victoria Park Plaza Hotel, London
For more information please visit http://www.authentify.com/2chk/ or contact John Zurawski at john.zurawski@authentify.com or (773) 243-0328.
About Authentify, Inc.
Authentify, Inc. is the world’s leading provider of telephone-based Out-of-Band authentication services. Clients include five of the world's top ten banks, three of the five largest ecommerce websites and two of the top four insurance companies in North America. These multi-factor authentication (MFA) services enable organizations that need strong security to quickly and cost-effectively add two-factor or multi-factor authentication layers to user logons, transaction verifications or critical changes such as adding an ACH payee, resetting passwords or changing contact information. The company's patented technology employs a service oriented message architecture and XML API to seamlessly integrate into existing security processes. Authentify markets primarily to financial services firms that need to protect their clients' online accounts, corporate security professionals managing access control, and e-merchants who want to limit fraud on their sites.
For more information, visit Authentify at: www.authentify.com.
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