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Are security concerns over mobile payments justified? Your Contactless Intelligence Weekly Twitter Feed

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Dear Readers,

 

Despite it being a fairly slow week for contactless and NFC news, last week got off to a bang of a start, thanks to The Sun - the UK red-top tabloid. Opening the Monday morning salvo was a piece  that claimed contactless payments were unsafe and that consumer's card details could be "stolen out of thin air" (http://bit.ly/IsesW8). The UK's Daily Mail (who had run similar pieces a month back) was quick to pick up the vibe and jump into the fray (http://bit.ly/JVEbcK). A very typical piece of  'investigative' scaremongering using pre-arranged evidence as reported facts.

 

Unsurprisingly, a couple of articles came out later in the week that pointed to mobile payments being safer than contactless card payments (notice I said 'safer' - not 'more secure') (http://bit.ly/IFRYqv) and other researchers called for a change in legislation to alleviate privacy fears on mobile payments (http://bit.ly/IKLm7u). As this editorial has pointed out before, there needs to be a combined effort to educate the general public on such security concerns in regards to contactless payments. Although the industry feels that the contactless revolution has begun, Contactless Intelligence advises all players not to overlook these security fears, lest they become a serious and stubborn blocking point to mass adoption.

 

At least calling it a revolution sounds as though things are finally moving, but if you believe a couple of reports out last week, consumers are either uneducated on contactless payments (http://bit.ly/IKKJdm) or simply apathetic to contactless payments (http://bit.ly/KdFZ0b ). Of course, we put this down to another case of headline grabbing - this time through the medium of the survey. And we all known how to play that game, don't we? I'm sure this is a topic we will continue to return to for the rest of the year.

 

On another note, I would like to point out to our readers that this is the last day for those interested parties to attend the Samsung CIO Forum (http://bit.ly/Ax4C3y) on the 8th May at the Sofitel Bayerpost in Munich, Germany. If you are involved in Green IT or environmental concerns then I urge you to click on the link and book your place ASAP!

 

If you are one of those lucky winners of a Contactless and Mobile Award then you can find your picture on the C-ITV site here (http://wp.me/P1Jrjn-A3). If you want a large format of the picture for your own press work and have not yet spoken to Karen Brindley - drop me an email and we'll sort a picture out for you. Talking of winners -  those of you at the Contactless Intelligence Spring Conference are of the winning country in the 2011-2012 Contactless & NFC Country League. Those of you who are not aware can find out who won this coveted title by reading the right hand sidebar.

 

And finally, you may have heard that Contactless Intelligence is about to start a summer campaign called, unsurprisingly, The Intelligence. More details will be given next week but in the meantime we have put together a C-ITV Facebook page. Soon it will become more apparent why we have set this up. The page can be found here (http://on.fb.me/J6m30u) and if you Facebook (is that a verb?) we would love you to visit and 'like'. Please.


Until next week.

 

Steve Atkins

Contactless Intelligence

PS: European Payments Council Newsletter Comments on Latest Developments in the Single Euro Payments Area

The free online EPC Newsletter, published quarterly by the European Payments Council, is a leading source covering latest developments in the Single Euro Payments Area – SEPA.  The April 2012 edition offers information supporting, in particular, payment service users such as corporates, public administrations and government agencies to become ready for SEPA by February 2014. Read more.

 


Featured on C-ITV this week

 

Winners of 2011-12 Contactless and NFC Country League Announced http://wp.me/pQLgk-KS


VIDEO: Visa, Usain Bolt and Contactless Payments http://wp.me/p1Jrjn-zX


Visa Digital wallet service – V.me – gets 2012 launch date http://wp.me/p1Jrjn-Ai


Payfirma opens mobile payment platform to developers http://wp.me/p1Jrjn-Ae


EPC Audio: Villeroy & Boch benefit through SEPA compliance
http://wp.me/p1Jrjn-At


BOKU and Deutsche Telekom announce partnership http://wp.me/p1Jrjn-AH


Intelligent Environments takes mobile wallet mainstream with O2 http://wp.me/p1Jrjn-AC


Lenovo and VeriFone Announce Mobile POS Platform with PAYware Mobile Enterprise http://wp.me/p1Jrjn-Ay


Study: US Contactless Payments shows 30% increase in first 12 months of adoption http://wp.me/p1Jrjn-AO


First Data Enables Contactless Payments at Parking Meters in Krakow http://wp.me/p1Jrjn-AS

 

Payments & m-Commerce

 

Was today 'Knock Contactless Payments Day'? More misguided reporting from the Mail http://bit.ly/JVEbcK

How Safe Are Mobile Payments? http://bit.ly/IFRYqv


Adapt laws to allay mobile payments privacy fears - Berkeley researchers http://bit.ly/IKLm7u


Public apathetic towards contactless payment http://bit.ly/KdFZ0b


Only 5% of people have made a contactless card payment, reveals new research http://bit.ly/IKKJdm


Denizbank adds NFC payments http://bit.ly/InMPTM


Ovum says operators face uncertainty in the expanding mobile payments value chain http://bit.ly/InMOiF


ViVOtech president: Google Wallet can be more than just mobile payment http://zd.net/InN94V


Delineating the Mobile Value Chain: A Holistic View of Mobile Payments http://bit.ly/InN4OO


Movilway launches m-commerce products for LatAm market http://bit.ly/InNbtK


Zain launches iCard exclusive mobile payment services http://bit.ly/InNhBF


The rise of mobile payments, continued: Emerging Payments in Emerging Markets: http://bit.ly/JDQgSZ


Paying With Square’s New Mobile-Payments App http://dthin.gs/KpTbMW


Report: Google and PayPal Challenge UK Joint Venture Plans http://bit.ly/KpT4RA


Mozido and Tata Consultancy Services Establish Strategic Alliance
to Globally Launch Mobile Payment Platform http://prn.to/IpNF1M


2degrees launches mission to replace wallet http://bit.ly/IFS4OX


Nokia powers PagSeguro NFC P2P payments service in Brazil http://bit.ly/IKLfJ0


Considering the Impact of Contactless Payment Technology http://bit.ly/IKLbZN

 

NFC & Mobile

 

Tap it out: Foursquare for BlackBerry updated with NFC support http://bit.ly/InN1Cz


'Rayman Legends' leaked trailer shows Wii U toy functionality http://bit.ly/InMWyH


Latest HTC DROID Incredible 4G leak shows NFC http://bit.ly/InMXTo


Wave and communicate: the possibilities of NFC and email http://bit.ly/InMTmr


IEEE Fellow: Don't expect NFC payments to have a major mobile impact http://bit.ly/InN7tY


Webinar: NFC: Not For Commerce? http://bit.ly/KtZEHm


Barnes & Noble CEO: NFC coming to the Nook http://bit.ly/KtZBLM


Apple patent suggests NFC for iPhone 5 http://bit.ly/KtZz6u


Intralot introduces “Tap’n’Play” NFC-powered games http://bit.ly/ItgdHC


Samsung Unveils Galaxy S III, Supporting NFC Payments and Enhanced P2P http://bit.ly/IKLl3h


MasterCard Certifies NFC Phones from HTC, Intel, LG Electronics,
Nokia, RIM, Samsung Electronics and Sony http://bit.ly/IKLeET

 

Transportation, Ticketing & Loyalty

 

Mobile City offer m-parking in Garmisch-Partenkirchen http://bit.ly/InNh4l


Airline to Introduce NFC App Following Successful Sticker Launch http://bit.ly/KtZXly


Beeline plans NFC payments for St Petersburg metro tickets http://bit.ly/KtZTlG


NZ Bus Considers Removal of Cash on Buses http://bit.ly/KtZOP3


SkyCash launches mobile parking services in Wroclaw http://bit.ly/KtZM9L


Encore now guarantees checks on location http://bit.ly/Itg6Ml


Canada: Change in fare system to halt transit users from digging for change http://bit.ly/IFS9C0

 

Other News & Opinion Articles

 

Contactless EMV - What is the value to retailers? http://bit.ly/IKLpA5


Pictures of winners at the Contactless and Mobile awards 2012 http://bit.ly/IEpt9J


VeriFone Reaffirms Organic Growth Estimates http://bit.ly/KpT18n

PATRONS


 

 


Winner - 2011-2012 Contactless & NFC Country League

Contactless Intelligence shortlisted the top 11 countries that made the contactless headlines during 2011.

Based on discussions with industry insiders as well as a review of press releases and blogs last year, it awarded each one points for the following categories (for 2011 only):

1. Number of POS terminals deployed

2. Type of contactless devices deployed

3. Number of contactless devices deployed

4. Number of new applications announced

5. Number of MNO’s active in contactless
 

Finally, it applied a weighting based on the level of backing given to contactless in 2011. This was designed to reward those countries that had either made a strong nationwide business-led push towards rolling out contactless (multiplying the total score from the previous five categories by 1.5) or a strong government/public sector-led drive towards adoption of the technology (multiplying the total score from the previous five categories by 2).

All scores were based on activities in 2011 and did not take into account the contactless infrastructure already in place prior to  1st January, 2011.

Before the weighting was applied for country-level commitment to contactless, the top five countries were China, the US, Japan, South Korea and Poland. The top four were no surprise; as this is a numbers game, the sheer size of China and the US always ensures that anything they do involves big numbers, while Japan and South Korea have a long history of embracing technological innovation, particularly in the world of contactless. But Poland’s top five ranking was an interesting development and revealed the strong advances it made in 2011 from a very low base.

These are the first scores after the 5 basic criteria were applied;

CHINA  69

USA  56

JAPAN  55

SOUTH KOREA  51

POLAND  48

UNITED KINGDOM  47

FRANCE  47

SINGAPORE  44

TURKEY  36

 SPAIN  33

RUSSIA  24
 

Once the weighting was included, there was a marked change in the results with France, the UK, the US, Japan and South Korea claiming the top five spots. France and the UK came top thanks to spirited efforts by both the public and the private sectors that have seen these countries developing their contactless infrastructure outside their capitals.

FRANCE  94

UNITED KINGDOM 94

USA 84

JAPAN  83

SOUTH KOREA  77

POLAND 72

CHINA  69

TURKEY  54

SPAIN  50

SINGAPORE  44

RUSSIA 24
 

The US – whose government has on occasion hindered rather than helped contactless deployment – enjoyed a good business-led push, which enabled it to maintain a spot in the top five. Japan and South Korea also kept their leading positions, thanks to a business-led promotion of contactless both domestically and overseas.

What really helped the UK to elbow its way past major rivals was its role as the host of the 2012 Olympics. This has had a big effect on getting the basics in place ready for a contactless Games. Public transport operator Transport for London (TfL) also played a major role in helping to create the contactless habit. However, whether the UK can retain its high ranking in future years will become clear only after the Olympics has ended and we see how committed public transport operators and businesses are to promoting contactless as the main way to pay for goods and services.

France’s pole position is no surprise given that there has long been strong support for the technology, both from industry organizations and a government keen to help French firms build market share. With a new government due to be voted in later this year  and austerity measures kicking in, it will be interesting to see whether – and how – the country’s commitment changes in 2012.

It was these reasons that the judges finally awarded the number 1 position for the 2011-12 Country League to France.


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