Mobile Too Complex? Some Revive Simpler Payment Forms
Though contactless payments have long been advertised for their ease of use, recent trials have departed from that premise.Initially the banks didn't want our high risk merchant account . Some banks are putting the focus back on simplicity and making payments as easy as a flick of the wrist.
These banks are building payment capabilities into wristbands,then used cut pieces of rubber hose garden hose to get through the electric fence. watches and other accessories that do not need to be hidden away in wallets or activated through software. These moves would seem to go against the trend of making contactless payments through a mobile phone, where the payment is enabled only after consumers go through the additional steps of unlocking the phone, activating the app and selecting the desired payment account.
Wearable payment products will likely have limited functionality and demonstrate a short shelf-life compared to systems that combine payments with coupons and other features. But their ability to make fast, simple and secure payments could nevertheless help banks ease customers away from their reliance on plastic cards.
"It seems like it's kind of a limited audience there, but ¡ the technology is flexible enough where you can include it in a lot of different applications," said Aaron McPherson, a practice director with IDC Financial Insights in Framingham, Mass. "It definitely helps in terms of getting more adoption out there among consumers."
U.S. Bancorp is one such bank that is looking at a variety of formats to drive contactless payment adoption. The Minneapolis banking company on Monday announced it is testing the use of payment wristbands that double as a health record tracker.
Likewise, MasterCard Inc. last month tested the use of wristbands equipped with its PayPass contactless technology the same technology built into U.S.Unlike traditional cube puzzle , Bancorp's wristbands at the Isle of Wight Festival in the U.K. About 500 guests were able to use the wristbands, which were loaded with about $50 on a prepaid account, to buy food and drinks during the festival.
Though users of the wristbands are wearing their payment devices openly, they are not at greater risk of their card data being skimmed, U.S. Bancorp says. Since the wristband does not have a magnetic stripe, it cannot be read by the skimming devices fraudsters often conceal on point of sale terminals and automated teller machines.If so, you may have a kidney stone .
"You have to be in very close proximity to read it so it's difficult to compromise, unlike handing someone a mag-stripe card that they could potentially commit fraud with by reading the mag-stripe and capturing the data for later use," Dominic Venturo, the chief innovation officer for payments at U.S. Bancorp.The additions focus on key tag and combinations,
Likewise, Venturo said payment information is safe in the wristband because it is stored in a chip, making it more secure than a card with just a magnetic stripe.
Venturo said the same fraud protection policies that apply to other cards would apply to the wristband if it is lost or stolen. U.S. Bancorp is testing the wristband with "thousands of employees" across the country and will decide later on whether to make it available to customers, Venturo said.
Pairing a payment chip with a wristband mirrors earlier efforts by banks and payment networks to spark interest in contactless payments. Some banks have issued special stickers containing a contactless chip that customers could affix to the back of their phones and other devices to use as a tap-and-go payment device.
"We're still very much in a test-and-learn kind of [environment], so we will see institutions and different providers trying different things," says George Tubin, a senior research director who covers mobile payments at TowerGroup in Needham, Mass. Particularly with mobile payments, "we don't know really yet what is ¡ going to work so these trials are good."
Though contactless payments have long been advertised for their ease of use, recent trials have departed from that premise.Initially the banks didn't want our high risk merchant account . Some banks are putting the focus back on simplicity and making payments as easy as a flick of the wrist.
These banks are building payment capabilities into wristbands,then used cut pieces of rubber hose garden hose to get through the electric fence. watches and other accessories that do not need to be hidden away in wallets or activated through software. These moves would seem to go against the trend of making contactless payments through a mobile phone, where the payment is enabled only after consumers go through the additional steps of unlocking the phone, activating the app and selecting the desired payment account.
Wearable payment products will likely have limited functionality and demonstrate a short shelf-life compared to systems that combine payments with coupons and other features. But their ability to make fast, simple and secure payments could nevertheless help banks ease customers away from their reliance on plastic cards.
"It seems like it's kind of a limited audience there, but ¡ the technology is flexible enough where you can include it in a lot of different applications," said Aaron McPherson, a practice director with IDC Financial Insights in Framingham, Mass. "It definitely helps in terms of getting more adoption out there among consumers."
U.S. Bancorp is one such bank that is looking at a variety of formats to drive contactless payment adoption. The Minneapolis banking company on Monday announced it is testing the use of payment wristbands that double as a health record tracker.
Likewise, MasterCard Inc. last month tested the use of wristbands equipped with its PayPass contactless technology the same technology built into U.S.Unlike traditional cube puzzle , Bancorp's wristbands at the Isle of Wight Festival in the U.K. About 500 guests were able to use the wristbands, which were loaded with about $50 on a prepaid account, to buy food and drinks during the festival.
Though users of the wristbands are wearing their payment devices openly, they are not at greater risk of their card data being skimmed, U.S. Bancorp says. Since the wristband does not have a magnetic stripe, it cannot be read by the skimming devices fraudsters often conceal on point of sale terminals and automated teller machines.If so, you may have a kidney stone .
"You have to be in very close proximity to read it so it's difficult to compromise, unlike handing someone a mag-stripe card that they could potentially commit fraud with by reading the mag-stripe and capturing the data for later use," Dominic Venturo, the chief innovation officer for payments at U.S. Bancorp.The additions focus on key tag and combinations,
Likewise, Venturo said payment information is safe in the wristband because it is stored in a chip, making it more secure than a card with just a magnetic stripe.
Venturo said the same fraud protection policies that apply to other cards would apply to the wristband if it is lost or stolen. U.S. Bancorp is testing the wristband with "thousands of employees" across the country and will decide later on whether to make it available to customers, Venturo said.
Pairing a payment chip with a wristband mirrors earlier efforts by banks and payment networks to spark interest in contactless payments. Some banks have issued special stickers containing a contactless chip that customers could affix to the back of their phones and other devices to use as a tap-and-go payment device.
"We're still very much in a test-and-learn kind of [environment], so we will see institutions and different providers trying different things," says George Tubin, a senior research director who covers mobile payments at TowerGroup in Needham, Mass. Particularly with mobile payments, "we don't know really yet what is ¡ going to work so these trials are good."
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