Nowadays, the usual methods of authenticating users on portals, corporate systems, VPNs, etc. are all familiar to us.
We all know about authentication factors (what you know, what you have, and what you are), two-factor authentication, multi-factor authentication, how to implement these factors, and much more.
When it comes to payment transactions, there are many hidden pitfalls, as there are a series of fundamental differences between a normal application in a business, for example, and a payment system like a plastic card, an e-wallet, etc. .
Let’s see this in more detail.
When it comes to enterprise level authentication, we can find many proven solutions to solve the problem; protocols (such as Active Directory, SAML, RADIUS, OpenID, OAuth, a set of RFCs or a set of ISO standards), vendor specifications, software and hardware to facilitate vendor authentication, as well as software and hardware that can communicate with these providers.
Another topic of discussion concerns client authentication devices, such as tokens, MAC calculators, smart cards, NFC rings, fingerprint scanners, etc.
This huge market always tries to stay organized and create intercompatible solutions. This is great, because you can get an enterprise-level application (for example, an e-doc system) and link it to your users’ directory through Identity Management (IdM) and with various authentication methods. via a Single Sign-On (SSO) system.
The SSO system will cover your authentication requirements, while the IDM will manage users and authentication factors. It doesn’t matter which supplier provides these components for you. All will work with standardized protocols.
Learn about the different payment transaction authentication methods
The issue of a payment infrastructure is, however, much more complex. I see two main reasons for this. The first is that user management is totally different from traditional applications. The second is that there is no standard for authenticating a user or a user’s transaction through the processing of payment transactions.
As a result, each financial company (bank, fintech, e-wallet, investment platform, etc.) must invent something according to its own vision and its own risks.
Let’s say you are a regular bank. If we ignore features like the open API then you are giving two main options for a user to spend their money; using a payment card and via a remote banking system with mobile banking, online banking, etc.
When it comes to offline payments with a card, there is no problem. You work with point of sale terminals via a payment system such as Visa or Mastercard. The payment process is completely transparent and secure.
In the case of a cardless transaction (such as in e-commerce), then in accordance with the requirements of Verified-By-Visa and those of similar services, you, as the card issuer, must authenticate the cardholder. the map.
The transaction will be processed by specialized card processing infrastructure and software. It is usually a separate division of a bank with its own rules that combine the requirements of the payment system such as those of Visa and internal risk management.
These rules, infrastructures and software provide a very limited range of transaction authentication mechanisms. Usually one of the following is used; card PIN, a separate static PIN, one-time password (OTP) via SMS, or one-time password via push notification.
Can you manage the authentication methods? No. Can you use anything better and more secure than texting? No. Can you ask a treatment provider to cover your needs? Yes, but be prepared to pay. Without any guarantee. Compare that with enterprise apps and you will see the difference.
You might be asking yourself, do I really need to change something? Maybe things are going well the way they are? Let’s see.
Using a card’s PIN code to authenticate an Internet payment transaction is not a good idea. It can be diverted at many points on its way from the user to where it is being processed.
There are many tools and techniques for doing this; keyloggers, man-in-the-middle attacks, man-in-the-browser attacks, Trojans, exploits, etc. I don’t think there is any need to explain why card pin theft is a bad thing.
A separate static PIN has the same vulnerabilities, but at least the card PIN will not be stolen and the card will not be used offline by the perpetrator.
The disadvantages of an OTP via SMS have been discussed several times. It is not secure at all as it has a large number of technical and technological vulnerabilities and can be hijacked using social engineering, phishing, etc.
In addition, it is extremely expensive. And what’s more, its use is increasingly banned in more and more countries due to its drawbacks.
An OTP via push notification has the same disadvantages from a technical and technological point of view. It is, however, inexpensive.
How do you choose an authentication method for your organization?
Going forward, you have several options for setting up your remote banking system.
The first option is to build it around card processing. In this case, you will have all the authentication issues, eg security and maintenance, from the previous paragraphs.
You will become hostage to slow, very exclusive and expensive processing providers, rules of payment systems like Visa or Mastercard, etc. Forget about modern and practical services.
The second option is to create a remote banking system to your own specifications. Using modern techniques, it can be a set of back-end services and a front-end solution.
In this case, you can configure the transaction processing flow as you wish, with transaction authentication following your own rules. Of course, you can find solutions like this from trusted vendors.
If a vendor’s solution or your own internal solution allows, you can integrate IdM and SSO into your remote banking system and additional services.
I think if you could choose a payment transaction authentication method, you wouldn’t choose an insecure and expensive method with many known issues like SMS messages or a static PIN.
From my perspective, the best solution for payment transactions is to use mobile-centric confirmation solutions like PayConfirm. It has a very high level of security, is cheaper than SMS, and is much more convenient for users.
If we continue to imagine that you are a bank, you might of course prefer to combine the transaction authentication methods for cardless transactions and for a remote banking system.
Yes, you can take the simpler route and make all your systems just as bad as the worst component of it (card processing, for example). Another way, however, is to push treatment providers to meet your needs.
Such requests may dictate authentication standards, as in the corporate sector. It will be good for everyone involved: financial institutions, security providers, end users, support companies, etc.
Thus, the position of a bank is not very convenient in terms of authentication of payment transactions. But fintechs, e-wallets and other financial institutions don’t have the same restrictions as a bank.
This means they can use modern, mobile-centric solutions that are cost effective, secure and convenient for end users.
Featured image credit: tech photo created by rawpixel.com – www.freepik.com
BASINGSTOKE, England, August 31, 2021– (BUSINESS WIRE) – A new study from Juniper Research has found that the transaction value of B2B cross-border payments of all payment types will exceed $ 42.7 trillion in 2026, up from $ 34 trillion in 2021. The research identified this growth of over 25% is driven by the growing popularity of e-commerce markets, which are generally cross-border in nature.
Research has identified that the B2B cross-border payments market is highly fragmented, with payments being slow, expensive, and difficult to track. As cross-border e-commerce accelerates, B2B payments must keep pace, with the use of automation, instant payment rails and solutions such as virtual IBANs, which enable the acceptance of payment options. local, essential to future success.
For more information, download the free white paper: Breaking the deadlock for innovation in B2B payments
Blockchain has potential, but development is needed
The new research, B2B Payments: Key Opportunities, Vendor Strategies, and Market Forecast 2021-2026, found that blockchain plays an important role in B2B cross-border payments, with services such as B2B Visa Connection and RippleNet with significant potential. However, the report identified that blockchain is not essential to this process – a network of networks can be built without using blockchain, which means blockchain providers need to focus on unique capabilities, such as traceability and immutability, to make it more attractive for B2B payments than alternatives. .
Research author Nick Maynard explained: “Blockchain is not a silver bullet for the challenges of cross-border payments, but it has an important role to play. For networks, making connections is essential to ensure the best possible reach and appeal in the increasingly globalized B2B payments market. ‘
Bank transfers dominating B2B cross-border payments
Research found that by 2026, 80% of the overall B2B cross-border payment transaction value will be via wire transfers; an increase from 70% in 2021. Instant payments will represent a relatively small proportion of B2B wire transfers, at 22% of these in value in 2026.
Research recommends that until cross-border instant payments are ubiquitous, payment providers should fill in the gaps by ensuring that alternative and manageable methods, such as virtual cards, are available to businesses.
B2B Payments Market Research: https://www.juniperresearch.com/researchstore/fintech-payments/b2b-payments-research-report
Download the white paper: https://www.juniperresearch.com/whitepapers/breaking-the-innovation-stalemate-in-b2b-payments
Juniper Research provides research and analysis services to the global high-tech communications industry; providing advice, analyst reports and industry commentary.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20210830005018/en/
Sam Smith, Press Relations
T: +44 (0) 1256 830002
E: [email protected]
Global market vision recently published a research report titled Mobile Payment Transactions Market. Primary and secondary research methods were used to construct this report. Analysis was derived using history and predictions. The report includes an in-depth study of geographies, revenue forecast, segmentation, and market share.
The global mobile payment transactions market is expected to prosper in terms of volume and value during the forecast period. The report provides an understanding of the different market drivers, threats, opportunities, and limitations. Analysts used SWOT and Porter’s Five Forces Analysis to determine the impact of these factors on market growth during the forecast period.
Access a PDF sample of the Global Mobile Payment Transactions Market Research Report with Opportunities and Strategies to Drive Growth – Impact and Recovery of COVID-19 @ https://www.globalmarketvision.com/sample_request/13017
The main company profiles of the mobile payment transactions market:
PayPal, GoogleWallet, MasterCard, Visa, LevelUp, Brain Tree, MoneyBokkers, Worlpay, Clinkle, Single Point
Segment by type, the mobile payment transaction market is segmented into:
Near Field Communication (NFC), Direct, WAP, SMS, USSD, Others
Segment by application, the mobile payment transactions market is segmented into:
Travel & Ticketing, Bank, Merchandise, Food & Drink, Airtime, Others
The SWOT analysis administered during the study highlights the strengths, weaknesses, opportunities and threats faced by the major vendors. The industry research analyzes market segmentation supports product type, application, sale, and countries. , and weighed to promote actionable decisions
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Regional Outlook (Revenue, USD Million, 2021-2028)
- North America (United States, Canada, Mexico)
- Europe (Germany, United Kingdom, France, Italy, Spain, Others)
- Asia-Pacific (China, Japan, India, South Korea, Southeast Asia, others)
- The Middle East and Africa (Saudi Arabia, United Arab Emirates, South Africa, others)
- South America (Brazil, others)
Main information that this study will provide:
- 360-degree mobile payment transactions market overview based on global and regional level
- Market share and sales revenue by key players and emerging regional players
- Competitors – In this section, various leading Mobile Payment Transaction industry players are studied on the basis of their company profile, product portfolio, capacity, price, cost and revenue.
- A separate chapter on the entropy of the mobile payment transactions market to better understand the aggressiveness of Leader vis-à-vis the market [Merger & Acquisition / Recent Investment and Key Developments]
- Patent analysis Number of patents / Trademark registered in recent years.
Key influence of the mobile payment transaction market:
- What was the size of the mobile payment transactions market, growth trends and market forecasts?
- What will be the CAGR of the mobile payment transactions market during the forecast period (2021-2028)?
- Which segments were the most attractive for investments? How these segments are expected to grow over the forecast period.
- What sharing of assessments for regional and national segments?
- trends mapping the latest technological advancements and strategic initiatives taken by major vendors in the mobile payment transaction market.
- What policy changes will help stakeholders strengthen their supply chain and demand network?
- What trends in the mobile payment transactions market (drivers, restraints, opportunities, threats, challenges, investment opportunities and recommendations)
- What strategies have helped established players reduce supplier, purchasing and logistics costs?
- Competitive landscaping mapping the main common trends?
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Any special requirement for this report, please let us know and we can provide a custom report.
George Miller | Business development
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Global market vision