Open Banking and PSD2 Uncertainties

The use of APIs in banking has largely been limited until recently, mainly due to regulation and security. However, European banks will soon be using APIs to provide access for third-party providers, as one of the many changes required by the upcoming the Second Payment Services Directive (PSD2).

A new report by PwC highlighted that banks are concerned that these changes will cause them to lose control of their customer interface.[1] A vast majority (88%) of the banks surveyed in the report believe that PSD2 will have an impact on their business and many see it causing them to change their strategies. Despite the uncertainty and the apparent risks, 44% are planning on providing an open bank offering, with 66% intending to integrate foreign products or functionalities into their own digital offering.

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The Importance of Security for Open Banking

The recent report by the Competition and Markets Authority’s (CMA) has announced significant reforms that are aimed at shaking up the banking industry. The Open Banking report, promises more transparency for UK banking consumers, open APIs and easier account switching.

These initiatives are welcomed by the Fintech industry, as they intend to increase competition, whilst helping customers obtain a better deal from their banks.

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Cultivating Consumer Trust

To get ahead in the competitive ecommerce landscape, merchants have invested hugely to provide a seamless and frictionless user experience, with speed and convenience the main objective. The success of brands such as Amazon and Uber, which lead the way in user experience, suggests that consumers have embraced frictionless, one-click payments.

However, there has been a lot of recent press reports about whether online businesses compromise the security of consumers   to improve user experience.

If so, are consumers aware of this trade-off? It also makes us question if we have now gone too far, and whether consumers would actually welcome and feel more positive towards a brand with more visible security measures.

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Why a little bit of friction is no bad thing

In a video for Fintech Finance, David Poole, our Director of Business Development, spoke about our work with Worldpay in demoing the MYPINPAD solution.

One critical topic he discussed was that of security and giving consumers control over their transactions. This is an area we have been vocal on and with good reason.

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MYPINPAD Joins Vendorcom’s All Party Parliamentary Group on Payment Systems

MYPINPAD is excited to announce its participation in the All Party Parliamentary Group (APPG) on Payment Systems, launched by membership organisation Vendorcom. The group will address key developments in payments systems that affect consumers and merchant businesses. It will also look at the role of payment systems in ensuring the stability of the UK economy and society.

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EMVCo Growth Report is Good News for Global Security

Global technical body EMVCo recently reported that by the end of 2015, 4.8million EMV payment cards were in circulation globally.[1] This is very good news for consumer data security. With the EMV protocol, card data is stored on an integrated circuit rather than on a magnetic strip, making it extremely difficult to clone. A key component of EMV’s success is its simplicity; where chip & PIN is in place, the user only has to remember a short 4-digit PIN and their payment card to conduct a secure transaction.

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Security Best Practice in Payments and Banking Outside the European Union

After much debate and campaigning over recent months, the nation went to the polls yesterday and voted in favour of the United Kingdom leaving the European Union.

The result shows that many were unconvinced of the arguments to remain, not only for the UK’s future as a whole, but also for their own personal circumstances. There has also been a lot of uncertainty about what will happen to the payments industry with the UK leaving the EU, and disagreement amongst experts continues.

However, we think one thing is for certain: the UK’s exit from the EU is unlikely to signal the widely predicted doomsday for the financial services industry, including the payments sector.

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Fighting CNP fraud through simple yet strong authentication

Our transactions are becoming increasingly cashless. Consumers are increasingly preferring alternative payment methods as they are often easier and faster to use than traditional methods. Our debit and credit cards now allow us to shop online anywhere we are or to send money to the other side of the globe with a few clicks.

However, the flipside to this boom in online commerce has been a correlating boom in online fraud. Card-not-present (CNP) fraud has been on the rise globally; in the UK alone CNP fraud increased by 20% in 2015.[1] Current authentication solutions used by banks and financial institutions are not effectively solving this issue. One-time-passwords are often used but are vulnerable to attack by sophisticated cyber fraudsters, by using malware and exploiting the vulnerabilities of the SMS network.[2] 3DS is also used as a fraud prevention method, however the user experience can be poor and many retailers end up turning it off as the cost of lost revenue from people abandoning their order through frustration is often greater than fraud rates.

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Biometrics and PIN: the future of authentication

Consumers are becoming more concerned about their privacy and security, and this has been exasperated by recent high profile data breaches, such as at TalkTalk[1] and, more recently, with Myspace.[2] This has led many to question whether traditional authentication methods, such as usernames and passwords, are still secure. In a recent survey, 80% of consumers preferred biometrics over usernames and passwords.[3]

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Multi-factor authentication: key to a secure banking experience

The way we bank is changing. Consumers are increasingly using alternative banking methods such as mobile, telephone or online, and we are seeing a decline in in-branch transactions.[1] This shift in banking habits poses new challenges for banks in regards to the identification and verification of consumers. When transactions are carried out in branch, this process has traditionally been much easier.

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