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Parakeet

How to maximise mobile payment security.



Along with your personal data, there is no stronger reason for mobile security than to protect your money, where you send it, how you receive it and how you save it. We’ve come a long way from 4 and 6 digit security logins that mimic your birthday or your first date. As mobile technology and contactless payments evolve, so does the security and biometric authentication is the latest advancement in that cause. Juniper Research indicates over US$3T worth of payment transactions will be biometrically authenticated in 2025. The research also showed the number of contactless mobile transactions secured by biometrics will increase by over 520% between 2020 and 2025, leaving behind passwords and 6 digit codes.

User experience, tells us seamless and frictionless is what we are searching for when transacting on our smartphones. The Mobile Payment Security: Key Opportunities, Vendor Strategies & Market Forecasts 2021-2025 indicate biometric capabilities will reach 95% of smartphones globally by 2025. Yet the research also suggests that 70% of ecommerce transactions will still take place via stored credit cards, even by 2025. It feels like a lot of the old financial institutions, who have hitched their wagons to credit card APPs have not kept up with current biometric innovation.

According to Research co-author Susan Morrow, ‘While biometrics are now an established part of the ecosystem, payments and eCommerce apps have not kept pace with the rate of innovation. Merchants must adopt biometric capabilities rapidly and educate users to best secure the increasingly massive eCommerce market.’

While COVID has certainly sped up the need for mobile security, the big disruptors like Apple and Samsung already play in the biometric authentication landscape. So it behoves financial institutions to keep up or be left behind as buyers and suppliers expect more than malware APPs to protect their information.

The mobile phone ecosystem has become large and complex with connectivity over many platforms which can increase the opportunity for fraudulent activity. Because of this complexity, the process has become fragmentary and requires more collaboration from all parties to provide a 360 degree view of the transaction process. Without this 360 view we will be stuck with the single authentication of the customer’s data and no opportunity to verify all of the entities required during a transaction.

To biometrically identify and verify all users in a transaction will become the benchmark against which all payment platforms will be measured. The need for personal and payment security has become a tipping point for change and that can only be a good thing, for you and for me.


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