💸 HOW INNOVATIVE PAYMENT TECHNOLOGY MAKES THE ACT OF PAYMENT DISAPEAR? G+D

what if the act of payment also would disappear completely?

Jukka Yliuntinen, VP at Giesecke+Devrient (G+D), gives his views on frictionless payment, and discuss the fact that there will come a time when we won’t consciously need to pay at all.

Jukka Yliuntinen, VP at G+D

The age of digital transformation has great opportunities at hand for Banks. Clever identity verification systems such as biometrics allow customers to skip remembering clumsy password combinations for online platforms, and numerous PINs for cards and services. New technologies allow the act of payment itself to slip into the background, unnoticed. But the question is: do we want this? And how safe it is?

As more banks embrace the opportunities enabled with digitalizing their banking infrastructure, securing the same will also come under even more scrutiny. And although the race to meet PSD2’s September 2019 cut-off for technical implementation is now in the past, the Europe-wide delays to the implementation to Strong Customer Authentication (SCA) mean there is an ongoing lack of clarity around how secure payments that incorporate SCA will marry up with fast, frictionless payment in different channels.

Jukka says, “Some of the Banks introduced SCA in a way that, yes, complies with PSD2 requirements for strong authentication and gives me as the customer a certain reassurance that, OK, something must now be secure because you need to have, for example, a secondary password. But if you need to start introducing that at point of sale...forget it. People start looking for something else.”

With Big Techs betting heavily on digital payments, some degree of digital wallet consolidation seems likely in 2020, along with a push to get more merchants and consumers on-board. Big Techs are in a strong position because they get to say how their devices and services are designed to make and protect a payment, Jukka explains. “They can impact the user experience much better than anyone else.” In addition, they also have access to a vast amount of data on their customers’ desires, preferences and spending habits, giving them further opportunity to deliver finely-tuned customer experiences.

“Payment is simply a means of acquiring something, and if consumers can carry out the process in a frictionless way that is invisible to them, that is where we will go,” says Jukka.

Think of Uber, for example, which has built its business model around effortless forms of payment, charging customers automatically after every ride. Or Amazon’s headline-grabbing Amazon Go stores, which allow customers to walk in, pluck items off the shelves, and walk out again without ever coming into contact with a POS terminal.

In payment terms this is invisible. In practice, that means that instead of customers having to input their information to pay online or in-store, it is automatically loaded from their digital wallet to deliver a truly frictionless experience. And here G+D plays a big role in the industry.

Curious about a seamless payment experience? G+D offers a wide array of services which could be a payment wallet, including secure customer authentication with the convenience of biometrics. In times when the way we interact with each other changes, how we shop, how we pay, like where we are today, enabling these solutions

👇 Read the full article in the PaymentGenes FinTech Magazine👇