innovations

Just ask yourself: what technologies, introduced by Visa and Mastercard, are the most modern, the hottest new trend of the payment fashion? We are sure that most of you will remember, at most, EMV-chip cards, Paypass/Paywave or NFC-present gadgets. Meanwhile, the Smart Card standard has been introduced in the previous century, and nowadays the number of emitted “plastic” with a chip already exceeds the amount of cards with a magnetic stripe. At the same time contactless technologies haven’t proven on the best side of themselves if we take into account the well known small amounts transactions problem.

Leaders of the card payment systems market have developed and are currently testing or introducing some quite interesting technologies within previous 2-3 years that would be able to create a new payment card ecosystems around the world. Five of the most promising developments that correspond to the e-commerce motto “Faster. Easier. Safer” are listed below.

1. Dynamic code verification.

Using the EMV-technology mentioned, chip cards, unlike magnetic ones, are able not just to store but also to process and change information during transactions. This feature reveales a wide range for innovations in the field of security. One of them is DCV – dynamic code verification.
The point of DCV is in a display embedded on the back side of the card which shows a CVV/CVC code changeable within some interval. The technology would be able to reduce a number of fraud transactions in Card-Not-Present operations, as well as to twist the knife to fishing scammers as the authorization code changes every hour.

2. Biometric cards.

Another development that became available with the chip is the innovation of Mastercard quite expected in as sign of biometric technologies . The only difference with DCV is that it does not add an output device to the card, but the input device which is a fingerprint scanner. To authorize a purchase with the presence of a card user should attach a finger to the sensor. Ideally this technology should replace PIN-codes which are the most vulnerable place in the security of card payments.

The technology of biometric cards is currently being tested by Mastercard in South Africa. It is expected that by the end of 2017 cards with a fingerprint sensor will be available for mass emission.

3. Visa Checkout/Masterpass.

Not entirely new, but, nevertheless, still uncommonly applied technology from the “Internet of things”. Visa Checkout and MasterPass are electronic purses tied to gadgets for Card-Not-Present transactions in the truest sense of the word. The account tied to the device may not even have a physical card. Absolutely.

4. Visa Commerce Network.

If you are a fan of anti-utopias and think that Big Brother is watching you, then here’s another reason to concern. Just like the leading IT corporations of the world – Facebook and Google – Visa also collects information about you. Have you recently purchased the Superman’s cape for only $9.99 on Amazon through a credit card? – smart algorithms will remember your choice and will promptly offer you a washing powder specifically for red krypton linen clothes on promo in the nearest supermarket. Whether it is intrusion into privacy or service optimization aimed to collect a consumers’ profiles is up to you to decide. If you have read this paragraph and are going to throw out the card and seal the web camera lenses, then we have a super-adhesive black tape for only $4.99.

5. B2B Connect.

Another technology being tested currently, B2B Connect is the embodiment of Big Data and Blockchain in the world of payment cards. The essence of the technology consists in the distributed storage of information about transactions shared among banks and financial organizations, The technology aimes to lessen the losses of fraud and unload the data centers Visa and Mastercard, which as has been mentioned in the previous paragraph will be used to collect a detailed dossier of cardholders.

Summing up it is worth noting that payment systems operators do not stand still, and facing the intense competition among themselves will only increase the pace of innovation in the near future, that perhaps would bring new standards of convenience and security for all market participants in electronic and online-commerce both for users and merchants.