Mobile payments are a very popular trend globally. To make this payment method more secure, Fiserv wants to experiment with a new solution.
The Future of Mobile Payments
To this day, there are different ways to use mobile payments. It is a very convenient solution, both for consumers and merchants alike. Fiserv acknowledges this popularity, but also wonders about potential security risks. Introducing a new solution may help alleviate these concerns.
Through a partnership with Visa, Samsung and PayCore, an interesting option will be explored. The goal is to use consumers’ mobile phones as PIN-entry devices. Merchants will be able to accept PIN-based contactless transactions without the need for extra hardware. This helps cut down on overall costs.
Fiserv’s John Gibbons explains:
“The way people want to pay is changing. Contactless Chip and PIN payments are common, yet over 23 million* micro merchants in Europe alone may lack terminals to accept them. We’re making sure no merchant is left out and helping them do business in the cashless economy by turning the smartphone into a card acceptance device.”
This system is widely dubbed as “SoftPOS”. It is a different version of a point of sale implementation for merchants. By removing the need for costly hardware, merchants can tap into new revenue streams. As long as their smartphone or tablet supports NFC, the full functionality of the app can be unlocked.
For consumers, it provides them with extra payment options too. Contactless payment cards and even wearables can be used to complete payment transactions. This would be a major step forward for the mobile payments industry.
The initial trial is conducted in Poland. If it proves successful, the app will be exported to the Emea and Apac regions accordingly.