MOBILE PAYMENT CONFERENCE 2019

Overview of some dominant topics

• Friendly Fraud
• Online payment standardization agencies
• Invisible Payments
FRIENDLY FRAUD
Friendly Fraud
Friendly Fraud Rates by Industry : 2016 vs 2018
How friendly fraud impacts brands
Unrecognized bills -
benign
Average travelers pay a
number of fees for added
experiences, billed in
strange ways. Customers
get confused from bill
description and claim fraud.
Services exist to help banks
access data to locate the
transactional explanations
and avoid a false claim.
Malicious activities
Ride sharing app lost 4 to 5
rides on average when
stolen card is used, due to
delay in payment
infrastructure.
Airline brand was a victim to
false travel agent using a
stolen credit card to buy
business class ticket for legit
customers.
Return Fraud
Loss from annual
merchandise return fraud is
estimated at $18.4 billion.
US issuers falsely declined
$331 billion in 2018.
Every $1 lost by merchants to
mobile payments fraud costs
$3.34 to merchants
SOLVING FOR
CARD NOT PRESENT SECURITY CONCERNS
Seamless payments is faced by a compounding problem today

1,244 data breaches in 2018 alone and a 36% rise in phishing attacks
Creating a new approach for secure remote commerce

• FIDO Authentication enables password- All 3 agencies form the Web Payment
only logins to be replaced with secure and securities interest group
fast login experiences across websites
and apps.

• W3C published the Payment Request API

and Payment Handler API, allowing
merchants to utilize one or more payment
methods with minimal integration.

• EMVCo SRC Specifications provide a

foundation for a consistent checkout
experience across a variety of remote
checkout environments
IS CASH DYING?

Millennials will spend $1.4 trillion in 2020. This is 30% of total retail sales -70% of this paid via mobile
phones. But US is not going cashless anytime soon
ATM’s modern capabilities in US
We need cash! $1.7 trillion cash in
circulation in US
• 32% of transactions in US is done in
Cash, down from 40% in 2012.
• 50% merchants accept Apple pay,
20% accept Samsung pay.
• Cash is preferred to fight card not
present fraud threats, to tip, or simply
because they are unbanked.
ATMs morphing into more than a cash
box – coming soon!
• Send virtual gift card – complete with
e-greeting card.
• Biometric Authentication
• Standardize to introduce cardless cash
in a user friendly manner, making a
virtual card present and physical card
not present
INVISIBLE PAYMENTS

No check-out lines in-store. No punching in numbers online. A seamless payment experience.

The third wave of digital commerce Consumer confidence will dictate
adoption
Harnessing the intelligence of IoT As payment apps graduate from
devices and sensors to complete merely processing transactions to
purchases enables checkout free making decisions about what to pay
experiences. for, consumers need to feel confident
that their digital identity is secure.
Whether it’s a car, a refrigerator or a
smartwatch, the payment can be
initiated and completed by a
sensor/machine with little or no
intervention by the user.
Real world examples

Amazon Go, Grabango

• Multi sensory technology in use in-store
• No loading on conveyor belts and re-
bagging.
• Grabango app automatically scans the
items & present to POS. Payment options
can be traditional or in-app. Retailer have
the opportunity to offer credit, loyalty
coupons throughout the shopper
experience.
Real world examples

Lisnr
• Leverages the speaker and the
microphone to do ultrasonic
payment - even negating the need
for a POS.
• Budweiser’s Made in America
music festival used Lisnr to
provide real-time, proximity based
experiences to increase sales of
merchandise, food/beverage
• CarPay, automatic personalization
and keyless entry are all possible
with the Internet of Sound.