EMV (EuroPay, MasterCard, and Visa) cards are emerging in the US. This new technology, which was developed by EuroPay, MasterCard, and Visa, uses microprocessor chips to authenticate point-of-sale purchases. Cards that have these chips use dynamic authentication, a process that changes authentication data on your card each time you use it. Dynamic authentication is more secure than magnetic swipe cards, which we currently use in the US, since magnetic swipe cards use verification data that stays the same each time you use your card.
Soon more consumers may access their accounts through mobile banking than through online banking, and more financial transactions already happen through mobile than online banking. Some consumers who don’t plan to use online tools to access their financial accounts are now asking for mobile-only account access.
Picture Pay is a new financial transaction tool that, in some institutions, is surpassing mobile bill pay usage. With this tool, you take a picture of a bill, confirm the payment amount, submit it to your financial institution, and your financial institution pays the merchant. While online bill pay requires setting up payee information online, Picture Pay requires less effort from the consumer.
This mobile tool provides retail, point-of-sale (POS) transactions, where a mobile phone replaces plastic-card transactions at in-person purchases. It can also house your company credit and loyalty points. While some see this as an up-and-coming tool, others see significant hurdles blocking the way of this new financial transaction option. The success of this mobile tool hinges on retailers: if they adopt the proper technology to enable these POS transactions, this technology will grow rapidly.
Some experts in the financial industry believe biometrics will become mainstream by 2016 and mobile payments will take off when this happens. Now that the market sells fingerprint identification technology, which uses fingerprints to authenticate users, experts see biometrics on the rise. Authentication tools could use the face, retina, iris, hand geometry and voice, among other biometrics, to verify a user.