Contactless
Safe Banking & Payment Methods KHALEEJ TIMES
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A DV E RT I S I N G S U P P L E M E N T
Be safe, stay home, go online As we fight the Covid-19 pandemic together, the banks in the UAE are encouraging customers to utilise online platforms
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o open a bank account or to pop in for a query, we usually run to a bank’s branch. But no more. With limited banking hours and most of the staff working offline due to the ongoing lockdown in several countries owing to the pandemic Covid-19, financial institutes are encouraging customers to turn to online banking services. As bank helplines are really busy right now, it may be quicker and easier to go with online banking rather than phone banking. Means you can pay bills, set up direct debits or standing orders, transfer money to other accounts, check statements and apply for other services like overdrafts or credit cards. The Central Bank of the UAE is also encouraging customers to use digital banking practices to curb the spread of Covid-19. In line with this, the Central Bank has also called on the banks in the country to make available more digital and online banking services in the face of an unprecedented public health crisis. In a statement, the Central Bank said that it strongly encourages banking customers to use a contactless payment device in most shops to avoid touching the payment terminal or exchange cash. The also advises the public to link your debit/credit cards to their smartphones or device to utilise mobile payments. It also advised customers to be vigilant against fraudsters who may try to take advantage of the current situation. “Make sure you’re on the lookout for anything suspicious, including messages about Coronavirus claiming to be from your bank,” it said.
The latest central bank circular suggests important tips for customers to follow to take advantage of digital banking. These include: signing up to online banking and the mobile app; knowing log-on details; and using contactless or mobile payments to avoid touching a payment terminal or exchanging cash at shops. Like other banks, RAKBANK has also asked it customers to go digital and emphasised that its key priority is the safety of its staff and the customers. Peter England, Chief Executive Officer at RAKBANK, said: “For customers, we recommend replacing visits to RAKBANK branches with alternative channels available to use remotely at their convenience. Alternative channels include ATMs and EDMs and RAKBANK’s Digital Banking app.” However, even before Covid-19 struck a blow this year, the UAE was fast embracing digital technologies to encourage online banking simply because of convenience and innovation. Large banks based in the UAE, one of the Middle East’s leading financial hubs, have been investing in digital transformation projects to compete in an industry with rapidly changing consumer requirements, according to analysis performed by Bloomberg Intelligence. A number of banks have already announced digital banking initiatives, ranging from separate digital-only banking platforms to strengthening of existing mobile banking services, rationalising branch networks and refocusing staff on value-added services rather than repetitive and less-profitable operations. Contactless payments Supporting the Covid-19 cause, the banking sector and the government in the UAE have advised the residents to use contactless and digital banking. In simple terms, contactless payments are a secure method for consumers to purchase products or services using a debit, credit using near-field communication (NFC) technology. To make a con-
tactless payment, a cardholder just needs to place their card near a point-of-sale terminal (POS) that is equipped with the contactless payment technology. Since contactless payments do not require a card holder to enter a PIN at the POS, such transactions are considered by many to be a safer way of paying for items during the current pandemic. The contactless payment systems are credit cards and debit cards, key fobs, smart cards, or other devices, including smartphones and other mobile devices, that use radio-frequency identification (RFID) or NFC, e.g. Samsung Pay, Apple Pay, Google Pay, Fitbit Pay, or any bank mobile application that supports contactless for making secure payments. Comviva by Mahindra offers PayPlus that empowers merchant partners with a unified payment acceptance platform to accept any
payment instrument across multiple channels. PayPlus offers a unified interface for merchants and acquiring entities to manage all instruments, channels and technologies through a single interface and is geared to extract the most out of the recent policy changes with its merchant self-onboarding functionality which significantly lowers the onboarding cost and allows the merchant to start accepting payments by downloading the application. Juniper Research reports that contactless payments will triple to $6 trillion worldwide by 2024, from about $2 trillion this year, as OEM mobile wallet transactions increase and banks expand the use of contactless cards. Rise of online shopping As authorities recommend residents to stay home and reiterate the importance
of social distancing, physical shopping outlets have temporarily put on a veil to contain the Covid-19 spread. However, this has given retailers an opportunity to explore digital solutions, while customers can enjoy their usual shopping activities online. Financial institutions, with added secure protocols and double authentication, have made contactless purchases a safe and enjoyable experience. Residents in the UAE can not only access their favourite clothing and lifestyle brands, but also have fresh produce, ingredients and condiments delivered to their doorstep in a short period of time. Occasions and observations have also adapted to the current situation, as birthdays are currently celebrated virtually, complemented by doorstep deliveries of bouquets and treats.
RAKBANK a pioneer in safe, contactless payments Paying without touching any surface seems more sensible than ever. But what are the emerging payment trends in 2020? Will mobile payments be the new norm? Are we headed for a cashless society? How RAKBANK is leading the way in providing safe, contactless payment solutions? Frederic de Melker, Managing Director of Personal Banking at RAKBANK, tells us more “The current environment has led to a radical change in customer behaviour and expectations for making and receiving payments. Payments are still essential for daily needs like groceries, medicines, school fees, etc. RAKBANK has enabled a paradigm shift to contactless and other digital forms of payments that are safe and hygienic,” said Frederic de Melker. According to him, following are the future trends in contactless and digital payments across the UAE. Contactless and mobile payments using NFC: Contactless payments using a card or a mobile wallet have been around for a while now. But 2020 will mark the start of a new era as it will be the preferred mode of payments. Eventually, contactless payments will become the new payment habit even after the virus-related safety norms are relaxed. RAKBANK customers can pay using any of the five leading mobile wallets — Apple Pay, Samsung Pay, Google Pay, Fitbit Pay and Garmin Pay. This positions RAKBANK as a front-runner in the UAE to offer contactless payments across all leading platforms. MobileCash is another innovation where RAKBANK has leveraged the contactless technology. Customers can withdraw cash at over 170 contactless-enabled RAKBANK ATM machines using a mobile wallet. No need to carry your debit card.
Frederic de Melker, Managing Director of Personal Banking at RAKBANK
India, Sri Lanka, Philippines, Nepal, Pakistan, Bangladesh, and 24 European countries, RAKMoneyTransfer offers instant remittance (within 60 seconds to India) at competitive exchange rates. E-commerce for small businesses: With the challenges facing small businesses in the current situation, managing cashflows will be crucial for sustaining the business. RAKBANK launched SIMPLIFY to empower small businesses like laundry shop, mom and pop grocery store, etc. to have an eCommerce website. Through the website, they can generate instant invoices that can be sent to the clients via e-mail or SMS. They can receive payments instantly online and track receivables.
Peer-to-peer transfer using social media: Payments use social media platforms to make exchanging money as simple as clicking a button. The money is transferred instantly between the connected accounts. SocialPay was launched by RAKBANK in 2019 as a feature with the FC Barcelona Prepaid Card designed for the Gen Z and the Millennials. The card is available as a physical card and a virtual card loaded with exclusive FC Barcelona-related benefits.
Digital disruption through fintech: While there has been notable innovation in the edutech field, the payment solutions used by the education institutions are still traditional. In 2020, we see the launch of solutions that will marry edutech and fintech to enhance both schools’ and parents’ experience. One such digital disruption is Skiply powered by RAKBANK. It’s a free app that the parents can use to pay school fees. The payments are 100 per cent secure and the good news is that parents can pay with any card from any bank or with a mobile wallet. For the schools, Skiply offers a digital payments ecosystem that integrates with the existing financial management software and links to the school’s existing bank accounts. Skiply helps schools manage fees collection and reduces admin staff time and cost. Currently, over 80 schools are accepting payments through Skiply and this number is increasing by the day.
Instant money transfers, anywhere, anytime: Given the very high percentage of expats living in the UAE, the money transfer will continue to be an important service in the times to come. Money transfer executed in real-time, 24/7, 365 days a year is the new norm. With RAKMoneyTransfer, you can remit money from the safety of your home using RAKBANK Digital Banking or RAKBANK Mobile Banking app. Through its strategic alliance with leading banks in
While RAKBANK digital platforms facilitate contactless and quick payments, we have pushed the boundaries of digital innovations to offer online purchase of gold. With the RAKBANK Gold Account, you can buy gold from the comfort and safety of your home. You can start with as little as one gramme. With the full suite of digital platforms offered by RAKBANK, there has never been a better time to go contactless for safe and hygienic payments.
Contactless: Safe Banking & Payment Methods
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‘Tap and go’ is here to stay: Contactless payments are set to increase and becoming a more preferred payment method in countries where these methods were not very popular earlier, things have changed amid the spread of Covid-19. Contactless and digital payment methods require less physical interaction and are more secure.
Going cashless in midst of pandemic Vivek Agrawal, Head of Enterprise Business at Comviva, points out that the pandemic has sped up the process of online and contactless payments. And it is just the beginning
Apart from the real global threat to health and humanity, the 2019 novel coronavirus (2019-nCoV) has also brought forth multiple new challenges across various industries, including banking. Cash has, for instance, come under scrutiny, owing to the public concern pertaining to transmission of the virus via this instrument. To address this, banks around the world are undertaking various initiatives to reinstate universal acceptance. The South African Reserve Bank, for instance, has counteracted scams in a timely manner. It has clarified that there is no evidence of transmission by cash and it is not withdrawing this instrument from circulation (SARB 2020). Other measures taken globally include: However, changed perceptions to cash are still significantly widespread. Globally, in fact, the emphasis is on creating a cashless economy. Digital payments: the global war cry In this situation, digital payments have, therefore, emerged as a viable solution. Naturally, governments, global bodies, banks and financial service providers are focusing on pushing digital, contactless payments and remote banking. Pushing remote banking and digital payments In the Middle East, it is believed that the pandemic is more than likely to provide a tipping point to a cashless society and further digital connectivity. The emphasis on cash and cash-on-delivery will, therefore, cease to exist. Also, the demand for contactless mobile payments, such as Apple Pay, Google Pay, Samsung Pay and a bank’s own payment application is expected to expand.
In Cash We Trust?
■■ The People’s Bank of China is sterilising banknotes in regions affected by the virus ■■ The United States’ Federal Reserve System is quarantining bills arriving from Asia prior to recirculation (Schroeder and Irrera (2020)) ■■ Central banks in South Korea, Hungary, Kuwait, et all, are sterilising or quarantining banknotes, to ensure that cash leaving central bank currency centres does not carry pathogens
Vivek Agrawal, Head of Enterprise Business at Comviva
In fact, contactless payments are already being focused upon. Various card schemes have increased the contactless payment limits across the region. In the banking space, leading players have encouraged customers to leverage digital and online banking services. Notably, over the past few years, banks in the region have already undertaken multiple digital payment initiatives. This ranges from launching separate digital-only banking platforms, to strengthening existing mobile and online banking services with various technologies like QR code, NFC-HCE. Envisaging a post-2019-nCoV world Of course, while it is too soon to envisage
a post-2019-nCoV economy, new types of payment structures are well underway. However, while digital payments are certainly advancing by leaps and bounds, it remains to be seen if cash can be dismissed. Digital payments, such as contactless card payments, have their own challenges. Their vulnerability to fraud is increased as they do not require a PIN for small transactions. Also, the divide between those with access to digital payments and those who don’t is set to widen. This is, however, contingent on cash ceasing to be an acceptable payment instrument. Multiple technologies, too, are expected to come to the fore. All in all, the pandemic has certainly changed the face of the payments industry, as we know it. This is, however, only the beginning. One thing’s certain, though - the best is yet to come, challenges notwithstanding.
A Digital Call-to-Arms
■■ The Ministry of Municipal and Rural Affairs in Riyadh has passed a multitude of rules and regulations pertaining to home delivery services of food and essential goods. No transactions are to be carried out in cash, but focused on electronic methods only. ■■ A UAE-based fintech firm has introduced a fast and secure mobile payment services platform. This is aimed at replacing cash and cards with contactless and cashless payments at physical store locations. ■■ Many UAE-based banks have automated digital transactions in excess of 95 per cent and have launched a host of digital products.
■■ Multiple mobile money operators in Africa are undertaking several initiatives to encourage more digital payments. These include waiving fees, increasing the daily transaction limit, permitting free transfers, et all.
Envisaging A Digital-First Future
■■ The switch to a cashless society will be fuelled by the adoption of alternative integrated payment features powered by mobile wallets and digital only banks. ■■ Personal mobile devices will become a user’s central operating device. Consumers will use mobile devices to operate ATMs and terminals remotely without touching the screen. ■■ By 2025, e-wallets are expected to be the second-most preferred method of payment after cards – and the first among millennials, according to Deutsche Bank AG.
Go contactless with Enoc Pay To make fuelling a contactless fluid experience, Enoc fuel stations have introduced Enoc Pay. The contactless app allows customers to fuel-up their cars with zero contact and in the comfort of their own vehicle. How does it work? Users have to first download the Enoc Pay app and select their desired method of payment. Once they enter an Enoc fuelling site, they can choose their convenient pump and let staff take care of the rest. The payment is then done through the app - online and contact-free.
Enoc Pay offers convenience through speedy fuel-ups while maintaining social distancing
Why is it better? Using a card to tap for contactless payment still requires interaction. With Enoc Pay, there is zero interaction while still maintaining social distancing. What makes the Enoc Pay app even better is that it can be used for all Zoom purchases as well. Another added bonus is the speed at which each transaction takes place; with Enoc Pay, all purchases are done online for quick and easy payments. Always striving for a better customer experience Enoc Pay is just one of the many ways Enoc tries to ensure an optimal customer experience when entering their sites. Evolving, changing and listening to their customer needs always takes priority when developing new and innovative ideas for service. Where do you download the app? Enoc Pay is available for download at Google Play and Apple Store. Enoc Pay also supports Apple Pay.