ADN’co Payments Insight – January 2015

Securing card data: a well-understood issue

• UNITED STATES – MasterCard and Dynamics officially unveiled their new display card allowing for the generation of one-time use numbers.

This launch highlights impending challenges for manufacturers, issuers and banks, stressing the point of one-time use card numbers and CVxs without affecting convenience for cardholders.

Luncheon vouchers: mobile-oriented issuers’ strategy

• FRANCE – Edenred France partners with MasterCard and Orange to test a mobile-based luncheon voucher service: another step towards dematerialising these media.

HCE: interbank rollouts underway

• POLAND – Several Polish banks are preparing an HCE-based mobile payment service in partnership with Visa: official launch scheduled for 2016.
• TURKEY – The interbank system BKM is crafting an HCE-based mobile payment service to be rolled out by the end of 2015. A service that would apply to all local banks.

These large-scale interbank announcements are central to the development of Host Card Emulation and might lead to similar moves on other markets worldwide.
Market concentration and partnerships could help these institutions deal with non-banking initiatives, from mobile carriers, for instance, as they keep on with their SIM-centric models.

Bitcoin still an object of curiosity

• UNITED STATES – Coinbase announces new investments and financial support from three banking institutions: BBVA Ventures, NYSE and a subsidiary of USAA.
• EUROPE – Ingenico partners with Paymium to enable bitcoin-based payments through their TELIUM TETRA POS devices range.

World first for a mobile currency, Coinbase’s banking investment for Bitcoin calls the attention of the entire payments industry.