1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Payments Market Trends

Are Digital Transactions Secure Enough? : The Need to Create a Set of Common Rules for Global Payment to Minimize Fraud and Hacking

  • January 2015
  • 13 pages
  • Frost & Sullivan
Report ID: 2649477

Summary

Table of Contents

Summary

The payment industry is in constant evolution, and acquisitions and partnerships in 2014 consolidated the strategies of many companies. Furthermore, new entrants appeared in this ecosystem to propose alternative approaches, to facilitate payment integration on Web sites, or to propose original business models.
The most important announcement this year is the Host Card Emulation (HCE) alternative that is supported by major financial institutions. This cloud-based technology drastically changed the way mobile payment is processed. However, one of the negative impacts of this solution is a security level that is lower than Near Field Communication (NFC) technology. Frost & Sullivan thinks that HCE is not a threat to NFC, but that it is another solution to be experienced by service providers as it offers alternative answers regarding the consumer management and it facilitates and reduces the deployment phase.

This innovative solution is not, at the moment, entirely documented and specifications are not totally published. Furthermore, the specifications are not furnishing all answers to existing question and use cases.
The payment ecosystem was particularly targeted this year by a different type of attacks. All payment processes were targeted. Many security and data breaches were exploited by a fraudster for the purpose of collecting sensitive information. This is a global threat and no country could argue that it is immune to this type of attack. Only global security initiatives and common rules can have a positive impact in dissuading potential fraudsters.

Background

This analysis will answer the following questions for a global audience:
• Why can a cloud-based solution be seen as an alternative?
• What will be the impact on the other payment initiatives?
• What are the security risks during the transaction process?

The payment industry is in constant evolution. A five-year strategy roadmap was written by major financial institutions for the migration from contact payment cards to contactless cards (2012 to 2017). In Europe and Asia-Pacific, the chip and PIN standard Europay MasterCard Visa (EMV) is the reference for international secured payment. After this migration and after the change in the payment terminal infrastructure to accept contactless technologies, the next step is to switch from contactless cards to mobile payment alternatives. In 2010, NFC technology was ready and analyst firms were forecasting an important ramp up each year from 2010 to 2013.

This strategy roadmap was deeply impacted by the 2012 announcement of the PayPal mobile wallet solution. This was the first time a major player from the online payment world (Internet) decided to enter the physical payment world. This had a major impact on the well-established ecosystem. Market players were forced to review their product line strategy or to accelerate the launch of their mobile wallet solution. As of 2014, no major changes appeared and banks and financial institutions started to push to find an alternative to NFC. System integrators were asked to propose solutions that are easy to install, easy to maintain, easy to deploy, and cost efficient. At this time, the only option was cloud-based services. For the first time, financial institutions and banks did not mention security as the major feature of a new payment service.

At the end of 2014, after the Apple announcement of Apple Pay and the strong support of NFC technologies, the payment ecosystem is back to where it planned on being one year ago. Service providers are in the dark about which technology choice to provide.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Ahmad helps you find the right report:

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Tokenization Market by Solution, Service, Application Area, Deployment Mode, Organization Size, Vertical, and Region - Global Forecast to 2022

  • $ 5650
  • Industry report
  • May 2017
  • by MarketsandMarkets

The growing concern over increased credit and debit card frauds is driving the tokenization market The tokenization market size is expected to grow from USD 823.0 million in 2017 to USD 2,258.6 million ...

Global Market Study on Mobile Ticketing: Travel Tickets Application Segment Projected to be the most Attractive Segment During the Forecast Period

  • $ 4900
  • Industry report
  • April 2017
  • by Persistence Market Research

Persistence Market Research presents a comprehensive analysis of the global mobile ticketing market in its new publication titled ‘Mobile Ticketing Market: Global Industry Analysis and Forecast, 2016–2024’. ...

Global Market Study on Consumer Mobile Payments: Retail End Use Industry Segment Anticipated to Create High Absolute $ Opportunity During 2016 - 2026

  • $ 4900
  • Industry report
  • April 2017
  • by Persistence Market Research

Persistence Market Research in its report ‘Consumer Mobile Payments Market: Global Industry Analysis and Forecast, 2016 - 2026’, has conducted a comprehensive study of the global consumer mobile payments ...


Download Unlimited Documents from Trusted Public Sources

The future of the Payments Industry

  • July 2017
    3 pages
  • Payments  

  • World  

    United States  

View report >

Payments Industry in Canada - Forecast

  • July 2017
    3 pages
  • Payments  

    Mobile Payment  

  • Canada  

View report >

Payments Industry in Canada

  • July 2017
    3 pages
  • Payments  

    Mobile Payment  

  • Canada  

View report >

Related Market Segments :

Mobile Payment

ref:plp2015

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.