Convenience and speed for secure payment transactions
Today's multi-functional mobile phones are far more than the single application devices that were used just to make phone calls. Mobile phones are ‘always on' and ‘always with you'. As music and video players, digital camera, email, text messaging and internet portal, they have become entertainment centres and play a vital part in our modern lifestyle. Adding payment functions is just the logical next step. And with the integration of NFC technology into handsets, the worlds of electronic payment and mobile phones are converging.
Contactless transaction technology has been very successful in the worldwide payment market. After a short period of proof of concept and pilot projects focusing on contactless payment cards, the market has quickly adopted this technology as part of their payment portfolio. Some card issuers have even converted their whole card portfolio to support contactless payment.
With contactless cards consumers and merchants have already experienced the benefits in speed and convenience as well as reliability of contactless devices. Typically targeting low-value transactions or transport/ticketing programs, the proven advantages of contactless payments are obviously also valid for mobile payments using NFC-enabled handsets. The feedback from the market is clear: Consumers are embracing NFC technology.
Convenient and secure payment
Making payments with your mobile phone is not only convenient and intuitive but also fast and secure. And usability is a key success factor to ensure fast consumer adoption. An additional advantage of the combination of mobile phones and contactless payment over the dual-interface, or pure contactless cards as used in the market today, is that the phone brings a nice color display, a keyboard and sometimes even speakers to the table. This opens up great marketing and branding opportunities compared to the static design of a plastic card body. Dynamic content and user interaction can be used to enhance the payment experience as well as improve risk management. Customised messages and timely alerts can be sent to the phone user via the mobile networks. The mobile phone represents an ideal platform for integrated marketing approaches.
Capitalising on existing infrastructure
Pilots around the world have shown the enormous potential of mobile payment. Banks and mobile network operators can leverage the existing contactless reader and network infrastructure. They can experience immediate benefits from faster payment transactions and increased customer convenience. Furthermore, mobile payment can open up new opportunities for additional services leading to stronger customer relationships and loyalty as well as additional revenue. | | Contactless payments at the point of sale or ticketing applications in public transport are just the most common use cases. But as the phone can serve as a card and as a card reader through its NFC interface, it enables peer-to-peer transactions as well as receiving a coupon from a ‘smart' poster with a hidden RFID chip inside. Remote payments via the internet and account management features combined with the integrated marketing potential just complete the picture.
One-stop shop
Morpho is part of the international high technology group SAFRAN. It benefits from first-hand access to the associated technologies being developed by the other members of the SAFRAN group. These technologies include biometrics, mobile phones (10% share), POS terminals (25% share) and optronics. SAFRAN's business involves high-level security in banking, health and ID and telecommunications: clearly, security is at the core of its business. Customers can capitalise on know-how and experience in integrating innovative new technologies in successful projects. Offering a one-stop shop solution, Morphos e-Document Division has been involved in and is part of many NFC trials and pilot projects around the globe involving payment, loyalty, ticketing and transport applications.
Being a major player in the telecommunications and financial services industry, Morpho e-Documents is actively involved in standardization bodies and working groups which have defined the NFC standards, like SWP (Single Wire Protocol), the HCI (Host Controller Interface) or Global Platform. Morpho e-Documents works closely with the big payment schemes, such as MasterCard and Visa, as well as the related standardisation bodies like EMVCo to always offer the latest solutions for customers worldwide.
NFC-related memberships at a glance: |
