Author: mon

Compared to NFC, QR Code is a much cost-effective and viable option. Most retailers have barcode scanning hardware. It’s integrated with their POS for billing of products. So there is no need for extra hardware.Let’s assume small businesses do not have scanners. Even then buyers can make QR Code payments.

How Do QR Code Payments Work? Businesses have options on how they wish to process QR Code payments based on their scale of business.

1.Buyer-to-Large Retailer Transactions

This system of QR Code payment applies to large retailers such as supermarkets. Let’s assume they have barcode scanners at every POS. This is how it works:

• Let’s say a buyer picks up items worth $400 at Walmart and goes to the cashier for checkout
• The cashier scans each item and generates a bill of $400. He generates a unique QR Code on a screen near the POS
• Buyer opens the payments app on his/her smartphone, scans the QR Code, and authorizes the payment
• The cashier gets a notification that buyer has made the payment and prints the sale receipt

2.Buyer-to-Small Business Transactions

This mode of QR Code payments applies to small businesses and retail outlets. Let’s assume they do not have barcode scanners at POS.This is how the process works:

• Buyer picks up items worth $12 at a small store
• The cashier requests buyer to make a payment and points at a printed QR Code near the POS
• Buyer opens the payments app, scans the QR Code, enters the amount, and authorizes the payment
• The cashier gets confirmation via SMS

Note that in this case, the buyer enters the amount and the merchant has a permanent QR Code. This QR Code helps the buyer app to identify the merchant account.

3.Peer-to-Peer Transactions

This mode of QR Code payment applies when an individual needs to pay another. For example, friends, family members, or self-employed professionals.This is how it works:

• Marsha got some plumbing work done from Ross, the plumber and she now owes him $50
• Ross opens the payments app and generates a QR Code worth $50
• Marsha opens her payments app and scans this QR Code on Ross’s phone to allow the transfer
• The transfer is complete and both Ross and Marsha receive an SMS confirmation

Conclusion: For businesses of all sizes, small or large, QR Code payments is the easiest way to go cashless. It is far more inclusive than NFC-payments and much more affordable. Also, QR code based payment provides convenience as well as enhanced security, preventing users from identity theft or loss of critical information.

References:

https://tpay.com/en/mobile/qr-payment

http://www.businesscardsqrcode.com/qr-payments.html

http://www.bpay.com.au/Business/Large-Business/BPAY-Services/QR-codes.aspx

In continuation of my last week’s blog Beacon Based Mobile Payment Solutions here are few more innovative companies that leverage iBeacon technology to deliver valuable payment solutions.

 PassMarket

3iMobile3’s cloud based PassMarket platform enables retailers to offer gift cards and mobile payments, powered by iBeacon technology. The PassMarket platform and application are intended to optimize the loyalty, rewards, gift cards and payments processes for both retailers and consumers. Consumers who join the participating retailer’s loyalty program are required to install a virtual beacon enabled pass in their mobile wallet.The beacons can then be used to inform consumers to redeem coupons, earn points or pick-up items on their shopping lists and make payments for them.

TruBeacon

TruBeacon is a services platform that enables retailers of all sizes and types (restaurants, hospitals, malls, sports arenas) to engage, manage, and provide payment options to shoppers. It has developed a range of Bluetooth-based technologies for mobile payments across different market segments, such as healthcare, data management, payments, rewards, community banks and credit unions.

TruBeacon’s Payments Beacon is a white label platform that works with smartphones, payment terminals and other point of sale technology systems. It provides an API that allows retailers and banks to incorporate mobile wallets into their iPhone and Android apps, supporting contactless payments, e-receipts and offer redemption.

LabWerk

LabWerk is an Amsterdam based start-up creating innovative applications using iBeacon technology. The platform connects the digital and physical worlds, enabling businesses to communicate with their customers at all touch points. The platform connects the digital and physical worlds, enabling businesses (from museums to festivals to airports) to communicate with their customers at all touch points via an all-in-one app.

The app allows businesses to easily process payments, without the need for expensive point-of-sale equipment, using iBeacon technology and the customer’s mobile device.

Conclusion

Beacon enabled payment solutions are the natural next step in the iBeacon technology landscape. Currently, beacon applications are largely used in the couponing and brand loyalty space, where the payment and redemption of the coupon may not always be processed inside the app; which is why combining a beacon based wallet or payment solution is the best way to build a completely seamless consumer experience.

Refrences:

https://blog.beaconstac.com/2016/05/beacon-based-mobile-payments-4-brands-that-are-doing-it-right/

https://www.passmarket.com/

http://labwerk.com/

https://www.trubeacon.com/

iBeacon technology is fast gaining momentum and paving the way for efficient and seamless solutions across multiple domains today. Beacons are being used in almost every sector, from retail to events to education, to build and improve multiple solutions from indoor navigation to loyalty programs to pushing contextual notifications. One of the latest applications of beacons today are for proximity payments.
Proximity payments have experienced significant growth in the recent past and is projected to witness rapid growth in the near future.
Beacons are among the newest additions that are helping drive sales and digitize consumer payments in the FinTech world. They have been very beneficial for different industries including the retails industry. Given the benefit of coupling it together with other beacon enabled efforts such as loyalty programs, coupons and in-store navigation.

A large number of companies today are venturing into beacon enabled payment solutions, given its imminent benefits and wide ranging applicability. Here are some of the innovative companies that leverage iBeacon technology to deliver valuable payment solutions.

Paij
Paij is a Germany based mobile payment solution that strives to provide cashless, fast and secure payments through its app, which is available on both iOS and Android devices. Their beacon based payment solution provides great value for merchants and customers alike; the customizable iBeacon technology solution has many advantages like rapid self-checkout, promotions and personalized discount offers.To ensure payment safety, Paij also has a sophisticated risk-check processes to verify each customer, before the payment is collected.

PowaTag
PowaTag is among the front runners of the m-commerce revolution and uses a plethora of powerful technologies such as beacons, digital audio watermarks, visual tags and embedded social media links to deliver cutting edge payment solutions. They recently partnered with more than 1,200 global brands, to empower consumers to make quick purchases. PowaTag aims at converting every point of contact into a point of sale by easing the interaction with customers, offering personalized promotions and delivering efficient payment solutions.

contd…

References:

https://blog.beaconstac.com/2016/05/beacon-based-mobile-payments-4-brands-that-are-doing-it-right/

https://en.wikipedia.org/wiki/Powa_Technologies

In continuation of my previous week’s blog on Traditional Banking Vs FinTechs , here is an another segment of the market where the  FinTechs can disrupt the existing monopoly of the traditional Banks.

Consumer banking: Banks focus on the upper end of the consumer market i.e. the high earners, because banks often can’t make money servicing the majority of consumers. Hence, most consumers feel neglected and, financial institutions need to focus on helping the average consumer and small business rather than the big business.

On the other hand, FinTech startups are developing software that allows them to more efficiently service a much broader range of consumers and still make money. With these new technologies and solutions, FinTech startups will be able to extend banking services to a broad swath of under-serviced consumers who have not been considered desirable customers for lack of adequate credit history. Technology will also enable more consumers to manage their finances online and on mobile devices, regardless of location or time.

The consumer market would appear ripe for a FinTech takeover, but startups will face a number of challenges while building their brands: the high cost of customer acquisition, the balance sheet required for lending, and the intense and intensifying regulatory scrutiny. There is also the growing issue of trust and cyber-security. Consumers are worried about security with some of the new banking services online. Both startups and incumbents need to adopt new technologies to meet the demands of the consumer and to provide adequate security in an increasingly dangerous environment.

Conclusion:The FinTech revolution has thrown the banking sector into turmoil. Banks retain significant advantages and will not easily be supplanted in key segments as long as they move quickly to meet new challenges. On the other hand, they are vulnerable and would do well to recognize this fact sooner rather than later.

References:

https://www.romexsoft.com/blog/fintech-vs-banks/

https://letstalkpayments.com/fintech-and-traditional-banks-a-beginning-of-a-beautiful-friendship/

 

 

The financial services sector is bracing itself for an unprecedented period of disruption. Innovations such as smartphones, big data analytics, and the blockchain technology that underpins Bitcoin, are forcing banks, insurers, and Wall Street firms to adapt to an unpredictable future where some of the old rules no longer apply.

The FinTech revolution accelerated with the new regulations enacted in the wake of the 2008 financial crisis, which made certain lines of business less profitable for banks and created an opening for startups leveraging big data, new communications modalities, and other tools to serve more tech savvy consumers. At first, banks began trying to develop many of these technologies themselves in a bid to keep up with their rivals. But as the pace of innovation has accelerated, banks have found it harder and harder to do everything at the pace, volume, and scale required.

In order to assess which side will come out as a winner, it’s important to understand the core segments of the market.

SMB banking: After the 2008 financial crisis, heavy regulations were imposed on the banks, making it much more expensive to service SMB customers. This led traditional banks to pull back from this segment, creating a lack of available financial tools and resources for SMBs. Also, majority of surveys conducted recently state that small businesses face all kinds of barriers when applying for loans and other financial services in the U.S. FinTech startups have rushed into this void, offering more efficient technologies and tools for lending, payments, operations, underwriting, cybersecurity, know your customer, regulations, compliance, asset management, and more. This trend is expected to continue for new market leaders to be born in this category. The SMB market is the segment in which nimble FinTech companies are most likely to displace large banks.

 Corporate banking: Banks will be wise to invest in this segment. Not only must they double down to remain competitive against rivals, but it is an area where startups will face the highest barriers. While some startups are likely to attack these segments, they are much less likely to be successful due to the complexity of the products and services, the need for large balance sheets, the regulatory scrutiny, and the ongoing strong relationships banks enjoy with their major customers.

to be contd…

https://www.romexsoft.com/blog/fintech-vs-banks/

https://letstalkpayments.com/fintech-and-traditional-banks-a-beginning-of-a-beautiful-friendship/

IoT Cloud Drive

As interconnected consumer devices become increasingly common, it’s only a matter of time before commerce follows. While entertainment typically moves the market, monetization is often quick to follow. This has held true in every internet-based movement so far, and there’s no reason to suggest that the trend is going to end now.

When mobile Internet was in its infancy, companies like Google, Facebook and Apple were the driving forces behind a push to speed up connection speeds and connect more devices worldwide. Revenue is a powerful motivator for change, and without it, the status quo would remain indefinite. The  IoT (Internet of Things) is no different. As profit motive increases, adoption and roll-out will as well. In a future dominated by mobile technologies, interconnected devices, and the need for on-the-go payment solutions, the IoT could be the movement that nudges everything in the right direction.

Alternative Currencies can become viable

For all alternative currencies such as BitCoin, the one thing that remains a key roadblock to consumer adoption is accessibility of technology. Altcoins have real value in the consumer marketplace if the barriers to entry are lowered by ensuring safety, ease of use, and retailer adoption. The problem currently is strictly technological, but as wallet makers begin the slow process of integration, digital wallets could be the key to unlocking the potential held by alternative currencies.

Digital wallets for altcoins isn’t a new idea. In fact, several of them already exist. Bitcoin Wallet, Mycelium, and Hive are just a few of these technologies that allow consumers to store altcoins on a mobile device. The problem is, outside of a payment network that allow customers to use them, they are essentially worthless. While the technology exists, it’s a hard sell to get consumers to move to a single technology in order to store alternative currencies that they aren’t using in the first place. This is why digital wallets made by trusted companies such as Google, Apple and others could spur real innovation as well as viability in the altcoin space.

Linking alternative currencies to well-known wallet makers not only lends trust to alternative currencies, but gives retailers the option to process all of these different methods (credit, debit, loyalty cards, alternative currency, and others) through one piece of point of sale technology. This is how we can bring altcoins to the mainstream.

Reference:  http://Reference: https://sites.google.com/a/utexas.edu/digitalwallets/secur

Digital wallets are considered in most tech circles as the future of real-world payment technologies. With major players like Google,Apple,PayPal and others jumping on the bandwagon and developing their own mobile-first payment technologies, a shift in consumer payment technologies is on the horizon.

The problem is, adoption has been rather slow, and until retailers start embracing the technology to process the payments, no one will be able to leverage the benefits of e-wallets to the full extent. Future is beginning to look like one that will feature the digital wallets in some capacity.

Here’s what we know:

NFC isn’t the sole option

The first phone with NFC technology was released in 2006 (Nokia) and it was billed as a game changer for mobile devices. Since that time, we’ve seen rather slow adoption of the technology and some analysts think that it’s being overtaken by other technologies.

The problem with NFC, aside from only a handful of popular phones coming equipped with it, is the fact that retailers have to change their existing POS systems in order to accommodate the newer payment technology and retailers are worst with adoption.

Luckily, NFC isn’t the only technology in town. The “big three” (Google, Apple, PayPal) in the digital wallet space, as well as a host of newer companies are all exploring digital wallets that utilize technologies outside of NFC. Wi-Fi, Bluetooth, or even QR codes are all being explored as possible options to replace NFC.

The most exciting of these technologies, is the latest iteration of Bluetooth 4.0 which compared to NFC offers more efficient use of phone battery, longer range, and a higher bit-rate for data delivery.

Security

The process of processing a digital transaction through modern encryption technology is safer and far more efficient than using an ATM machine or swiping card at the local retailer. The biggest risk isn’t that of data interception by a third-party, but instead physical loss of the device containing mobile wallet. While “turning off” the device after reporting the cards stolen should remain relatively simple, we’re not at all aware of how security protocols exist in order to protect the consumer should a thief attempt to use the card. All of this is easily preventable with a strong password or using bio-metric security devices available on some current smartphones.

Another risk involved in digital wallet adoption is one that has yet to be answered; who accepts the burden of personal liability in the unlikely event of fraud? Most credit card companies currently shoulder this risk, but this fraud insurance doesn’t exist when the card is tied to a mobile wallet.

to be contd…

Reference: https://sites.google.com/a/utexas.edu/digitalwallets/secur

 

In continuation to my last week’s blog Fraud Management via Analytics, here are few more fraud identification strategies that are based on analytics:

Duplicate transactions: The identification of possible duplicate transactions would be a possible symptom of fraud that should always be examined. Ordinarily, one would expect that invoice number vendor number combinations, would be unique. Therefore, the existence of transactions with the same invoice number vendor number combinations would be an unexpected pattern in the data.

Text and Graph analysis: Sometimes ‘flat’ data does not tell the whole story. Adding spatial operations enhances analytics with an additional dimension based on patterns, relationships, and inferences. Any visualization tool can bring to surface some glaring unusual behavior in business. There may be correlations that are only visible in graphs/visuals, which could be easily identified using statistical techniques like cluster analysis and spatial recognition.

Similarly, text examination could be another built-in secret security framework, if done at random intervals and coverage, which could analyze unstructured data for sentiments and relationships. Statistical packages like Python or XL-Miner, can be used to effortlessly start a self-analysis journey. It can positively impact detection, recommendations and resolutions.

Even/Rounded amounts: Another digital analysis technique is to identify even value amounts, numbers that have been rounded up. The existence/re-occurrence of even amounts in some accounts may be a symptom of possible fraud and should ideally be probed further. Frequent rounding of travel expenses can be detected via this technique.

However, fraud symptoms are only symptoms and care should be taken to properly investigate each aspect before jumping to any concrete conclusion. The actual analysis relies on the critical thinking skills of the fraud examiners’ ability to integrate the output into a cohesive actionable analysis product.

Fraud analytics is an emerging tool as it relates to detecting anomalies and patterns within voluminous amounts of big data. Fraud prevention measures can  be used to look beyond the individual data points in an organization, to the connections that link them. Often these connections go unnoticed until it is too late. The sole objective of fraud analysis is to develop the most precise and valid inferences.The rationale being used here is that unexpected patterns can be symptoms of possible frauds.

Ratio analysis: It involves the calculation of ratios for key numeric fields. Like financial ratios that give indications of the relative health of a company, data analysis ratios point to possible symptoms of fraud. Three commonly employed ratios are: maximum/minimum, Maximum/Second highest and current year to the previous year. Unexplained deviations could be symptoms of fraud

Network analysis:Mapping relationships helps identify potential vulnerabilities within network between entities to identify association networks. As organizations grows, more complex relations get developed within and outside the establishments, which needs to be monitored, for any untoward development of ambiguity other than normal. It could reveal normal and anomalous patterns of interaction within and between people or groups, can expose facilitators of fraud.