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3 Payment Trends to Watch out for in 2020

By: Banking CIO Outlook | Tuesday, July 14, 2020

It wouldn't be a surprise to see some of our favorite features becoming a more secure gateway to pay as banks and merchants take measures in their fight against fraudsters and hackers.

Fremont, CA: Like the many changes 2020 has brought us, the payment landscape will see some significant adjustments as well. User convenience and customer experience are the essential aspects of payment, whether through increased security for card users or new ways to pay.

Here are three trends to watch in 2020.

Biometrics

Biometric security will become a crucial tool for payment providers regarding protection when it comes to purchasing. Top 10 Customer Experience Solution Companies - 2020

Biometric authentication is already integrated into the process while transacting through 3D Secure 2, such as fingerprint and voice or facial scans. The 3DS 2.0 can use data collected during checkout to authenticate a transaction without customers' assistance, creating an improved customer experience for mobile transactions that require strong authentication.

Strong Customer Authentication (SCA)

The second Payment Services Directives (PSD2) will require authentication for purchases with certain transactions. 3DS 2.0 uses mobile devices' full capabilities to create a more secure way to identify the customer without adding conflict to their checkout experience. Although some banks are expected to launch Strong Customer Authentication (SCA) over the course of 2020, there is still a lot of uncertainty among the merchants to support the revised directive on payment services. With the EU regulators enforcing PSD2 at different times, businesses will need technology that can readily apply SCA to guarantee payments aren't declined due to SCA not being active.

Network Tokenization

Protective measures must be taken by all parties to safeguard the information of sensitive card data shared to complete payment on ecommerce platforms. To tackle the rise in fraud and scam cases, network tokenization will become a common way to protect payment details.

To protect a card's payment card number (PAN), tokenization replaces it with a string of useless, unique string of numbers called a token. The customer's PAN is switched by a token and not transmitted during transactions, making the payment more secure. Network tokenization helps protect business and customers from financial theft as hackers will be unable to link the token to the payment information stored by the payment partner. Additionally, network tokens are always up-to-date, which means that in case of a loss or theft of payment cards, the token can still be used to pay for services without any problems.

The payments landscape has moved fast to assist on-the-go customers carrying smartphones, which can be used as a self-service kiosk in quick-service restaurants or get apps that help book and pay for a weekend stay at a hotel and which can also be used as hotel keys. The exciting possibilities offered by these experiences help improve customers' lives and provide unparalleled levels of data and insights for businesses.

Check out: The Cyber Security Review

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