The future of contactless payments and mobile banking
Paying with a bank card has long been a routine process. Contactless payment is available even at local outlets and in small stores.
Recently, the contactless card payment technology has been increasingly used. The level of information technology development allows you to pay for a product/service in one touch using a smartwatch or smartphone. You can control your bank account and monitor contactless payment devices through mobile banking applications on the smartphone. Given this, the question arises of how safe contactless financial transactions are, and what is the future of bankmobile?
In major cities and capitals, paying for purchases through the app on the phone is no longer surprising. Using digital devices like smartwatches or even contactless payment rings, you can pay for public transport, or a large purchase in the hardware store. MasterCard notes that there is an effective international experience in this form of payment. Thus, following the company’s mandate from 1.01.2020 payment terminals in Europe should support the technology of NFC contactless payments.
The technology has gained wide popularity confirmed the volume of payments in Europe. They increased to 145% over the past year. Banks in developed countries offer card processing services on wearable devices: smartphones, watches, bracelets, stickers, and jewellery rings.
Wireless data transfer – Near-Field Communication iPhone or Android (NFC) – is a built-in technology in wearable devices that provides contactless payment using a debit or credit card connected to the service. Developers can implement the technology on the leading mobile OS like Android or iOS.
Security in the financial sector is a very sensitive issue. But it is given special attention, so the protection of your data on the NFC ring is similar to that used on a Bank plastic card.
In the process of growth IoT programming for NFC systems, the market is filled with new technologies and solutions, leading to the creation of more functional gadgets. According to the latest statistics, 20% of us adults wear fitness trackers or smartwatches. The transport sector and retail trade are one of the main one’s industries that encourage the spread of non-cash payments throughout Europe.
The primary advantages of contactless payments are: being intuitive to the user; effective in places with a large flow of people (supermarket, metro, etc.); convenience and mobility. In addition, multiple Bank cards can be linked to a single device. The technical implementation of such a seemingly complex task has long had its algorithm. Software companies around the world provide services for the banking sector.
The protection of a contactless card is a major and natural issue that worries the NFC user. Also, each bank has an individual security system aimed at protecting banking operations. This should be taken into account when setting up software for NFC and IoT devices.
Using Host Card Emulation technology, HCE, which allows you to reproduce the principle of the bank card on a smartphone, the security module is virtual and is in the cloud. The open architecture of HCE simulates loyalty card, print, pass, etc. smartphone manufacturers also solve many compatibility problems.
In 2018, on social networks, there was a rumor about scammers with a mobile payment terminal in public places, who stole money or data from contactless payment cards. In theory, it sounds convincing. However, a detailed study is unlikely. There is a technical possibility and banks confirm it, there are very few precedents about the theft of data “by air” and they have no actual confirmation.
Payment methods using a contactless card and NFC Android devices (Samsung Pay, Google Pay, or Apple Pay for iOS) are similar: in both cases, the terminal receives payment data (card number and expiration date) and a one-time dynamic code. The difference between paying with a smartphone is using tokenization technology, a sequence of numbers that the equalizer processing centre sends to the MasterCard server. Its use is limited, it is only valid for contactless payment and can be withdrawn or replaced at any time. Therefore, technology provides the highest level of security for funds.
To conclude everything above, contactless payment has a promising future and is rapidly developing in large cities. And in the near future, it will be available everywhere.
Speaking about the contactless payment options, it is impossible to ignore mobile banking. Adapted financial and banking applications allow the user to control their accounts in a smartphone. The mobile app development service for the Bank is in demand by almost any client-oriented banking institution
Mobile banking apps for Android or iOS must function correctly on different devices, such as smartphones and tablet PCs, and support wireless Bluetooth and Wi-Fi connections to contactless payment devices. The implementation of online banking applications quickly pays off by increasing customer loyalty and engagement and saving costs for advertising and maintaining branches.
Mobile banking apps have a very wide range of features that are often repeated by the bank’s optional internet page.
Bank mobile services include:
Unlike Internet banking, the smartphone app has a simplified interface, but a high level of functionality. Developing a mobile banking app allows you to achieve customer loyalty. The bank works closely with users, communicating through push notifications, thereby shaping their image personally for everyone. Based on the previous one, the promotions and offers can be directed to a particular person or group, and therefore the audience response will be higher. Another plus is that the tank monitors the reaction of potential buyers and analyzes the popularity of the new service, conducts a correlation of demand and prices more effectively.
PNN Soft has a wealth of development experience in finance and banking. We are well versed in the internal infrastructure of financial institutions and integrate with the necessary services quickly. A dedicated team of our specialists is ready to implement a project of any complexity with an intelligent security system and maximum protection of Your data. Entrust the Software development to real professionals-fill out our contact.
