Author: Simon Hewitt, Office of CEO and Innovation Other payments

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Since the introduction of payment cards in the mid-20th century, your transformational innovation in the payment industry is surprising.

In addition to the emergence of contactless payments by NFC (near field communication) technology, your most famous development is to use your mobile phone to simulate payment cards.

Although this simulation is convenient, it will not replace or basically change the card function. It only replicates the same process in different forms.

This limited scope of innovation raises important questions about the payment ecosystem and its resilience to transformative change.

Inertia of global payment infrastructure

One of the main reasons for this stagnation is the huge and meaningful global payment infrastructure.

From point-of-sale (POS) terminals and payment processors to interbank networks and settlement systems, the infrastructure that supports payment cards represents a huge investment over decades.

The prospect of replacing this infrastructure with a brand new payment paradigm is daunting, both logically and fine.

The huge scale of this task makes both businesses and governments almost unimaginable.

This entertainment infrastructure creates high barriers to disruptive innovation. The industry’s introduction is the pursuit of a completely new payment system with a focus on gradual changes such as enhanced security measures (e.g., EMV chips, tokenization) and exploitative capabilities (e.g., contact payments, close payments, behaviors, behaviors, behaviors, behaviors.

The cost of a reactive mechanism

The current investment in payment security is basically reactive and aims to detect and mitigate fraud. Prevention tool fraud, from machine learning algorithms to real-time transaction monitoring, needs to be expensive and needs to be continuously updated to deal with the threat of development. Listen to these efforts, payment fraud persists, with global losses reaching billions of dollars each year.

This reactive approach emphasizes a paradox: addressing the internals of fundamental flaws in the payment card model, where stakeholders continue to dump resources into systems that manage their vulnerability. While these investments may reduce fraud in the short term, they will not eliminate potential problems such as relying on static certificates that may be stolen or duplicate.

Case of solving problems

Given this landscape, it’s worth mentioning: Why not focus on solving the root cause of payment card vulnerabilities without requiring a solution that completely overwhelms existing infrastructure? Such a solution coud:

1. Utilize existing systems: By building the current payment infrastructure, new solutions can achieve widespread adoption without major changes to POS endpoints, network protocols, or backend systems.

2. Enhanced security: Implementing a dynamic, context-aware authentication method will reduce dependence on static credentials, making it harder for fraudsters to exploit stolen information.

3. Simplify cost: By addressing vulnerabilities in their source, stakeholders can reduce the need for expensive fraud detection and mitigation measures.

4. Improve user experience: For the carefully designed solution, coud provides consumers with seamless intuitive interaction, providing consumers with a monastery with payment cards while enhancing trust and security.

5. Continuity required: The Toves contraceptive tube-compliant solution will ensure consistency and continuity between in-store and online purchases, effectively eliminating the concept of card-non-purpose transactions.

The way forward

The payment industry is at a crossroads. Continuing to invest in reactive measures will only perpetuate the cycle of fraud and remediation, while the rate of return is reduced.

In contrast, a proactive approach – fixing whole-body defects in payment card technology while presenting existing infrastructure officials is a pathway for long-term stability and innovation.

This approach requires collaboration between financial institutions, technology providers, regulators and other stakeholders. It also calls for willingness to challenge the status quo and launch solutions that prioritize security, efficiency and user experience without the need for numerous alternatives to global payment systems.

If there is no bankruptcy, can I resolve it?

While perhaps too simple, consider what happens when the solution actually achieves its purpose.

The wheel was invented in Mesopotamia for about 3,500 euros, and there was little to be repaired. Unfortunately for the payment card industry, this industry cannot say the same thing, which is still stuck in a constant cycle of repairs, suffering and repetition.

exist Other paymentsWe are not claiming to have invented the equivalent of a steering wheel financial situation – but we do think it’s time to stop patching the problem and start solving it permanently, we have a range of product developments and have clear goals to consider.