Engaging, Enabling and Evolving Commerce in Canada since 1989

June 2018 ACT News - Driving Insights

IN THIS ISSUE:

  1. APPLE PAY AND GOOGLE PAY MAY COME SOON TO AIRLINES INCLUDING AIR CANADA, WESTJET
  2. FLEXITI ACQUIRES TD FINANCING SERVICES' $250 MILLION CANADIAN PRIVATE LABEL CREDIT CARD PORTFOLIO, BECOMES ONE OF CANADA'S LEADING PRIVATE LABEL CREDIT CARD ISSUERS
  3. CANADIAN BANKS MUST PLAY CATCH-UP ON REAL-TIME PAYMENTS
  4. INGENICO, NEXI TEST CARD-COMPLIANT PIN-ON-MOBILE SOLUTION IN ITALY
  5. BANK OF ENGLAND TO REBUILD SETTLEMENT SYSTEM TO INTERFACE WITH BLOCKCHAIN PLATFORMS
  6. WORLDPAY AND IDEMIA INTRODUCE MOTION CODE DEBIT CARDS TO FINANCIAL INSTITUTIONS IN THE U.S.
  7. RBC AND WESTJET ANNOUNCE A NEW CANADIAN LOYALTY PLATFORM
  8. CHINESE TOURISTS CAN PAY VIA THE "UNIONPAY" APP IN THE UNITED STATES AND CANADA
  9. HOW CAN REAL-TIME PAYMENTS BE SECURED?
  10. WHY PRIVACY MUST BE BAKED INTO IOT DEVICES
  11. INTERAC, BAMBORA IGNITE X-BORDER ECOMMERCE PAYMENTS
  12. NATIONAL BANK LAUNCHES MPOS PRODUCT IN MONTREAL
  13. UL FIRST LAB RECOGNIZED BY PCI SECURITY STANDARDS COUNCIL TO PERFORM SOFTWARE-BASED PIN ENTRY ON COTS (SPOC) SECURITY EVALUATIONS
  14. GEMALTO BRINGS SECURE, MULTI-FACTOR AUTHENTICATION TO BELGIUM'S PIONEERING NATIONAL MOBILE IDENTITY SCHEME ITSME
  15. NEW MASTERCARD SERVICE SPEEDS ADOPTION OF ARTIFICIAL INTELLIGENCE
  16. ALIPAY LAUNCHES A WALLET-BASED CROSS-BORDER MONEY-TRANSFER SERVICE USING BLOCKCHAIN
  17. RBC GIVES CLIENTS THE POWER TO CONTROL THEIR CREDIT CARDS THROUGH THE RBC MOBILE APP
  18. PAYSTAND EXTENDS PAYMENTS-AS-A-SERVICE PLATFORM INTO CANADA
  19. INTERAC TAPPING INTO KITCHENER'S COMMUNITECH
  20. VENMO OFFICIALLY LAUNCHES COMPANION DEBIT CARD
  21. FIS FACING $100B A YEAR IN CYBERATTACK LOSSES

 

ACT Canada Partners:

Ingenico Group

INGENICO - Payment Acceptance Solution Provider
Ingenico Group is the global leader in seamless payment, providing smart, trusted and secure payment solutions to empower commerce across all channels, in-store, online and mobile. With the world's largest payment acceptance network, we deliver secure solutions with a local, national and international scope in 125 countries. For over 30 years, we have been the trusted world-class partner for financial institutions and for retailers, ranging in size from small merchants to several of the world's best known global brands. Our smart terminal and mobile solutions enable merchants to simplify payment and deliver their brand promise. Visit http://www.ingenico.com/.

Interac Logo

INTERAC - Payment Network Partner
Interac Association is a recognized world leader in debit card services. Interac Association is responsible for the development and operations of theInterac network, a national payment network that allows Canadians to access their money through Interac Cash at 60,000 Automated Banking Machines and InteracDebit at 766,000 point-of-sale terminals across Canada. Interac Flash, a secure contactless enhancement of Interac Debit allows Canadians to pay for items instantly with their Interac chip debit card at a reader that supports Interac Flash. Visit http://www.interac.ca.



ACT CANADA WOULD LIKE TO THANK OUR NEW & RENEWING MEMBERS:

GENERAL MEMBER

Elavon Canada Inc ~ member since 2013
Payvision ~ new member

 


CAREER OPPORTUNITIES

Visit our career opportunities section for the latest opportunities - http://www.actcda.com/information/careers/

LOOKING FOR GOOD PEOPLE?

There is a lot of movement in the market, so if you are looking for new employees, we are always aware of some great people. Please contact ACT Canada for more details - postings@actcda.com.


CALENDAR OF EVENTS

Mobile Payments Conference
Chicago, IL, USA
August 22nd – 24th, 2018
https://mobilepaymentconference.com/
ACT Canada Members receive a 20% discount

FinovateFall
New York, NY, USA
September 24th – 27th, 2018
https://finance.knect365.com/finovatefall/
ACT Canada Members receive a 20% discount

Real Time Payments Summit
New York, NY, USA
September 25th, 2018
https://www.rtpsummit.com/newyork/
ACT Canada Members receive a 15% discount

Money2020
Las Vegas, NV, USA
Oct 21-24, 2018
https://us.money2020.com
ACT Canada Members receive a US$250 discount on top of existing discounts

Customer Expo
Nashville, TN, USA
October 24th – 26th, 2018
https://customerexpo.loyalty360.org/
ACT Canada Members receive a 20% discount

TRUSTECH
Cannes, France
November 27th – 29th, 2018
https://www.trustech-event.com/
ACT Canada Members receive a 460 euro discount

 


 

1. APPLE PAY AND GOOGLE PAY MAY COME SOON TO AIRLINES INCLUDING AIR CANADA, WESTJET
Source: Mobile Syrup (06/12)

Apple Pay, Google Pay and other mobile payments platforms may soon arrive on international flights through major airlines like Air Canada, WestJet, Delta and jetBlue. The Universal Air Travel Plan (UATP), an airline-owned payment network issued by 26 major airlines, has partnered with payment tech company CellPoint Mobile to offer UATP members access to Apple Pay, among other mobile and card-based options. Any airline that connects to UATP's Ceptor, a universal link to support "alternative forms of payment," now has access to CellPoint's Velocity payment platform and its variety of mobile alternative payment methods (APMs) including Google Pay, Alipay and WeChatPay.

"Because CellPoint Mobile's transaction acceptance capabilities will be fully integrated with the UATP platform, member airlines will not have to undergo lengthy, resource-intensive integration and development processes with the GDS and reservation systems they currently partner with in order to accept APMs," said a section of CellPoint Mobile's June 12th press release. With all this said, there's no explicit timeline for when Apple Pay and Google Pay may arrive onboard your preferred airline. While the resource is available, it's unclear exactly how long it will take individual airlines to roll out the new APMs.

 


 

2. FLEXITI ACQUIRES TD FINANCING SERVICES' $250 MILLION CANADIAN PRIVATE LABEL CREDIT CARD PORTFOLIO, BECOMES ONE OF CANADA'S LEADING PRIVATE LABEL CREDIT CARD ISSUERS
Source: Flexiti Financial (06/07)

Flexiti announced the acquisition of TD Financing Services' (TDFS) Canadian private label credit card portfolio valued at approximately $250 million. This is a significant transaction in the consumer lending space, making Flexiti a leading private label credit card issuer in the country. The acquisition includes an equity investment of over $50 million led by Globalive Capital, giving them a controlling position in Flexiti. A founding investor, Globalive Capital's follow-on investment demonstrates its commitment to accelerating Flexiti's growth and innovation in the alternative lending space. Flexiti has also secured new $350 million senior and mezzanine credit facilities, including $300 million provided by Credit Suisse AG, Cayman Islands Branch, providing capital to support the portfolio acquisition and its strong growth trajectory.

The acquisition adds more than one million new credit card customers, and 900 new merchant locations currently offering TDFS credit card financing at their locations, to Flexiti's client base.

Founded in 2013, Flexiti is a Toronto-based fintech private label credit card issuer, offering POS financing at big-ticket retailers to make their customers' purchases more affordable. Through its award-winning mobile application process, customers can apply for financing and receive approval within minutes – no paperwork, no scanning or mailing. With minimal integration required into existing POS systems, retailers can quickly scale across multiple locations and sales channels to offer financing to all of their customers, in-store and online.

"Since our inception, Flexiti has experienced tremendous growth by following one simple mantra – our retailers are our partners, and we put them at the core of everything we do," said Peter Kalen, Founder and CEO of Flexiti. "This acquisition of TDFS' private label credit card portfolio represents an important milestone for our company, and the consumer lending space in Canada, as it instantly positions us as one of the largest consumer lenders in the country with a cardholder base of over 1 million Canadians. We're thrilled to welcome our new retail partners to the Flexiti network and look forward to working closely with them to drive sales and customer loyalty through our industry-leading point-of-sale financing platform."

Flexiti Financial and TD Bank Group are members of ACT Canada; please visit www.flexiti.com & www.td.com.

 


 

3. CANADIAN BANKS MUST PLAY CATCH-UP ON REAL-TIME PAYMENTS
Source: IT World (06/07)

Canada is "definitely last to the party" in the world when it comes to developing a real-time payment system, says a payments solutions expert.  "It's going to take significant investment to catch up," said Robert Matys, associate partner with IBM Payments Solutions, at a recent ITWC webinar.

Canada currently relies on a legacy system which processes payments at the end of the day, or on the next business day. That's not fast enough in today's always-on world, said Matys. Canada needs real-time payment systems which offer instant fund transfers anytime.

It's become a big challenge for financial institutions in Canada. "They are being asked to operate in a way that they currently don't, and never have," said Matys. "But the advantage of being last to the table is that many of the problems have already been solved."

Why change?

The number one reason for adopting a real-time payments system is to meet customer demand, said Namit Agrawal, Associate Partner with the IBM Payments Centre – Canada. "Consumers expect to be able to send or receive funds instantly, anytime and anywhere," he said.

A number of other factors are adding to the pressure to transform the way we make payments, said Agrawal. Payment processing amounts to one-third of a bank's revenue but the revenue is declining.  At the same time, new entrants are disrupting the traditional payment models. Agrawal noted that this presents an opportunity for banks to gain an edge by partnering with new upstarts.

Advancements in technology are also providing new ways for financial institutions to streamline costs and improve the customer experience.

New regulations are another catalyst for change. Payment Canada's modernization program is expected to drive the banks to upgrade their payments infrastructure, said Agrawal. As well, financial institutions are implementing new ISO standards to enable cross-border real-time payments. Finally, all businesses must adapt to increasingly complex privacy rules. 

The reality of real-time payments

"The integration challenge is often underestimated," said Matys. Existing systems for things like accounting or fraud detection were designed to process batches of transactions at the end of the day, not in real-time. "It's a very significant piece of the puzzle."

Matys advises financial institutions to break the problem down into "logical piece parts" and see which issues have already been solved elsewhere.

Many are turning to technology to meet the demands. A resilient cloud architecture, with its ability to scale as needed, will help to meet the always-on requirements, said Matys. AI can be used to do real-time customer profiling and pattern analysis to help detect fraud. For real-time payment, this has to be done in seconds, said Matys. Modern reporting systems are also needed to monitor systems in real-time to ensure transactional integrity.

IBM has launched a Payments Centre in Canada to help clients address these challenges. It offers a cognitive payments platform in the cloud, with value-added services like AI and Blockchain. "It's intended to be a centre of excellence where financial institutions and new entrants can collaborate," said Agrawal.

Matys stressed that financial institutions need to tackle the issue with the right mindset. "Operations will have to change. There is no way around it," he said. "Understanding how the organization will set up for success is absolutely critical."

 


 

4. INGENICO, NEXI TEST CARD-COMPLIANT PIN-ON-MOBILE SOLUTION IN ITALY
Source: Ingenico (06/04)

Ingenico Group will partner with Nexi, the Italian market leader in digital payments, to deliver a pioneering PIN-on-Mobile pilot in Italy before September 2018. Ingenico and Nexi aim to assess merchant and customer acceptance and prepare the future launch of an innovative solution promoting card payments through smartphone which is fully compliant with PCI requirements.

Designed primarily for micro-merchants, PIN-on-Mobile (PoM), also known as PIN-on-Glass (PoG) or PIN-on-COTS (Commercial Off The Shelf), enables secure payment processing on a consumer-grade mobile device. With PIN-on-Mobile card owners manually enter their PIN on a non PCI-PTS device owned by a merchant, such as a smartphone or tablet. The transactions are considered as 'card present'.

The goal of the new payment solution is to leverage the increasing market penetration of mobile connected devices to foster card acceptance among smaller merchants, helping banks and acquirers to design new business models and grow their businesses. It is also ideally suited to small and medium businesses seeking backup solutions in addition to existing payment terminals, or companies in vertical segments with a low volume of transactions such as public transportation, logistics, or postal services.

"We are proud to be the first to introduce PIN-on-Mobile solution on the market", said Luciano Cavazzana, EVP EMEA & Global Sales, Banks & Acquirers Business Unit, Ingenico Group. "The pilot will target primarily micro-merchants, who currently rely on cash, process a low volume of transactions and are willing to accept card payments. This solution enables them to accept payments with a low upfront investment, using familiar consumer-led technology. As it is a pay-per-use solution, there is no long-term commitment and onboarding is easy. The 1000-units pilot demonstrates the strength of our commitment to this technology. This is a sizeable roll-out into the Italian market done with Nexi, the biggest payment service provider in Italy."

"Nexi is always looking for technological evolutions enabling us to offer our partner banks innovative solutions and effective. The PIN-on-Mobile solution will allow us to expand our offer and to promote a smarter solution to all the professionals: a market segment featured by high mobility and strong use of smartphones for business and services. We are pleased to be the first worldwide operator to carry out a PIN-on-Mobile pilot based on Ingenico technology, confirming the consolidated partnership between the companies" - added Enrico Trovati, Merchant Services Director, Nexi.

This solution will be on a 6-month trial period and the pilot project will include:

  • 1000+ secure card readers (SCR) to read EMV and contactless bank cards,
  • a mobile PIN entry application (MPEA) to enter the PIN on the merchant's device,
  • a back-end Trust Service to analyze and verify the merchant's device is secure before manual PIN entry,
  • a Merchant Business App Nexi branded.

The solution will be closely monitored and results assessed in terms of solution performance, fraud and risk, merchant acceptance, cardholder acceptance and general robustness.

The PIN-on-Mobile concept was originally developed with Ingenico technological partner, MYPINPAD, a global leader in payment authentication software solutions headquartered in the United Kingdom, and has been approved by the main card schemes such as VISA and Mastercard.

Ingenico Group and Mastercard are members ACT Canada; please visit www.ingenico.com & www.mastercard.com.

 


 

5. BANK OF ENGLAND TO REBUILD SETTLEMENT SYSTEM TO INTERFACE WITH BLOCKCHAIN PLATFORMS
Source: Coin Telegraph (06/23)

The Bank of England is planning to rebuild its Real Time Gross Settlement (RTGS) system so that it can interface with private business and platforms using distributed ledger technology (DLT), the bank's Governor Mark Carney announced in a speech June 21.

Speaking at Mansion House in London, Carney said that the bank will conduct an "ambitious rebuild" of its RTGS system, which is, according to him, the backbone of every payment in the U.K. RTGS is a system generally used to transfer large volumes of funds between banks.

The bank is looking to reorganize the existing RTGS so that private payment platforms could plug in directly to the bank's system. "Our new, hard infrastructure will be future-proofed to your imaginations, opening up a range of potential innovations in wholesale markets, and corporate banking and retail services," Carney said.

The Governor also mentioned that the bank has begun working together with the Bank of Canada, the Monetary Authority of Singapore, and some private-sector organizations to upgrade inter-bank cross-border payments, including initiatives based on DLT. He said:

"The potential returns are large. At present, cross-border payments can cost ten times more than domestic ones. We estimate that in the U.K. alone there is scope to realize annual savings of over £600 million. Most fundamentally, the more seamless are global and domestic payments, the more U.K. households and businesses will benefit from the new global economy."

Carney asserted that the new system will help fight money laundering and financing of terrorism, as well as advance access to the domestic and international financial systems.

The RTGS renewal Proof-of-Concept (PoC) was initially proposed in May 2017. The bank then concluded that DLT was "not yet sufficiently mature to provide the core for the next generation of RTGS," however it placed a high priority on ensuring that the improvement of RTGS functionality is capable of interfacing with DLT.

In April, the Bank of England released a PoC paper that examines how to configure a distributed ledger system which would maintain privacy between participants, keep data shared across the network, and also enable a regulatory body to oversee all transactions. The central authority would have the power to issue and retire new units of assets and grant access permissions to all participants. No party other than the regulator would be able to infer details about transactions they are not party to.

 


 

6. WORLDPAY AND IDEMIA INTRODUCE MOTION CODE DEBIT CARDS TO FINANCIAL INSTITUTIONS IN THE U.S.
Source: IDEMIA (06/13)

Vantiv, now Worldpay, Inc and IDEMIA are spearheading the first North American pilot of the MOTION CODE debit card, a dynamic payment card that aids in the fight against card-not-present (CNP) fraud and against hackers to offset the repercussions banks face as a result of data breaches.  The average cost of a data breach in the U.S. in 2017 was $7.3 million. In a 44 percent increase over 2016, there were 1,579 data breaches in the U.S. in 2017, 302 of which resulted in the exposure of full credit and debit card numbers.

The MOTION CODE payment card replaces the static CVV code printed on the back of cards today with an e-paper mini-screen, which displays a dynamic security code that automatically changes at regular intervals. Because a MOTION CODE debit card constantly changes its security code, stolen data is rendered useless to bad actors within hours, if not minutes.

"Worldpay prides itself on being at the forefront of fraud prevention in the U.S.," said Bill Hampton, senior leader and head of issuer solutions at Worldpay. "In our pursuit to eliminate fraud, we continue to champion innovation in a market that typically lags behind the rest of the world. By partnering with IDEMIA to deliver MOTION CODE in the U.S., we will continue to offer best-in-class security to financial institutions and their cardholders. This card provides a complete end-to-end solution for our issuers and their cardholders everywhere."

Worldpay is the first payment processor in the U.S. to incorporate this technology into their payment-processing platform making it a seamless integration for financial institutions looking to deploy MOTION CODE debit cards. Ten different international locations have deployed cards featuring MOTION CODE totaling more than 600,000 cards issued with more than 4,000,000 authorized transactions. Throughout these deployments, there have been no reported cases of CNP fraud (3).

"Just as IDEMIA championed the use of chip cards to address point-of-sale fraud, we are leading the way with MOTION CODE as an innovation solution to help fight card-not-present fraud," said Megan Heinze, Senior Vice-President for financial institutions activities in North America at IDEMIA. "We are excited that Worldpay is the first company to deploy our solution in North America."

Worldpay was recently selected as a finalist in the 2018 NAFCU Innovation Awards for MOTION CODE. To learn how Worldpay can help your financial institution fight fraud and the repercussions of a data breach, visit www.vantiv.com/financial-institutions.

IDEMIA and Worldpay are members of ACT Canada; please visit www.idemia.com & www.worldpay.com.

 


 

7. RBC AND WESTJET ANNOUNCE A NEW CANADIAN LOYALTY PLATFORM
Source: RBC (06/13)

RBC and WestJet announced they are creating Ampli, a next generation loyalty platform that will deliver unparalleled value to consumers through amplified earning power on a simple and convenient digital solution. Open to all Canadians, Ampli will provide members with merchant offers, flexible rewards and exclusive bonuses. In addition, members who spend on RBC cards and fly with WestJet will further amplify their rewards.

Ampli brings RBC and WestJet, who are already partners on the WestJet RBC World Elite MasterCard, together in a unique alliance that will complement their existing proprietary loyalty offerings. Through Ampli, other top Canadian brands will also have the opportunity to deepen their engagement with consumers.

"The Canadian loyalty landscape is ready for disruption, and Ampli is a fundamental shift in the business model," said Dave McKay, President and CEO of RBC. "We are bringing together top Canadian brands to help them reach consumers more efficiently and effectively. We will also provide consumers with opportunities to earn rewards and save money like never before."

Over the coming months, additional merchant partners will be announced.

"We're delighted to partner with RBC on this new venture. With Ampli, we can provide greater value to the millions of our combined customers by leveraging the power of the platform to deliver personal and relevant offers," said Ed Sims, President and CEO of the WestJet Group of Companies. "Moreover, Ampli will provide the ability to better serve our guests and help WestJet fly even more premium travellers."
Ampli will debut later this year.

Royal Bank of Canada is a member of ACT Canada; please visit www.rbc.com.

 


 

8. CHINESE TOURISTS CAN PAY VIA THE "UNIONPAY" APP IN THE UNITED STATES AND CANADA
Source: UnionPay (06/26)

UnionPay International announced that it has partnered with Bank of China (Canada) in enabling all the stores of Foodymart in Canada to accept UnionPay QR code payment. Cai Jianbo, CEO of UnionPay International, Li Aihua, President of Bank of China (Canada), and Wei Chengyi, Chairman of Foodymart attended the launching ceremony. Some food and beverage merchants in California, the US, have recently started accepting UnionPay QR code payment too. This is the first time that UnionPay's QR code payment is launched in Canada and the United States. It is expected that the number of merchants accepting UnionPay QR code payment in North America will reach 5,000 within this year.

North America is a major destination for Chinese outbound tourists. China has been the largest source of international students for the US and Canada for many consecutive years too. Through cooperation with major institutions in North America, UnionPay International has continued to improve its local acceptance network. So far, almost all ATMs in the US accept UnionPay cards for cash withdrawal. Over 80% of merchants in the US accept UnionPay credit card. In Canada, with the top five banks have all carried out UnionPay cards acceptance, 90% ATMs and over 160,000 merchants accept UnionPay cards.

Based on its increasingly expanding acceptance network, UnionPay International is expediting rolling out mobile payment services such as UnionPay mobile QuickPass and QR code payment to expand the usage channels of the "UnionPay" app. So far, about 80,000 POS terminals in the US accept UnionPay mobile QuickPass, and this figure is expected to grow to 250,000 within this year. There are also thousands of daily consumer merchants in Canada that have accepted UnionPay mobile QuickPass. After the launch of UnionPay QR code payment this time, users of the "UnionPay" app can conveniently scan and pay at the Feng Tai Supermarket stores in Toronto and Vancouver, as well as at restaurants such as Hai Di Lao Hot Pot in San Francisco.

Cai Jianbo said that in order to follow the increasing trend of personnel exchanges between China and US, Canada, as well as more and more using "UnionPay" app domestically, UnionPay is expanding the scope of acceptance of mobile payment services outside of mainland China and pushing the debut of UnionPay's QR code payment in North America, which opens new perspectives for the promotion of the "UnionPay" app. UnionPay International is expediting rolling out its innovative payment services by improving the linkage between different markets. Firstly, we are expanding the acceptance scope of UnionPay's mobile payment services, focusing particularly on the fields of daily consumption and transportation. Secondly, we are exploring collaboration opportunities on e-wallet development with switch networks, issuers and retail groups to offer global customers mobile payment services that are based on UnionPay cards. Thirdly, we will encourage those who favor UnionPay mobile payment services to use them domestically. Fourthly, we have built platforms to support payment innovation, and have completed drawing up the technical framework of UnionPay innovative business, which has effectively promoted the launch of our innovative services globally.

Li Aihua said that, Bank of China (Canada) is actively practicing the development strategy of building a world-class bank in a new era. As the leading acquirer of UnionPay in Canada, we continue to develop new technologies and services in order to enhance the customer experience. Our launch of QR code payment service together with UnionPay International will better serve the growing number of Chinese visitors to Canada. This will further enrich the mobile payment products in Canada too and provide more payment services for people traveling between China and Canada.

To date, users of the "UnionPay" app can enjoy secure and convenient mobile payment services in 26 countries and regions outside mainland China. UnionPay QR code payment has been accepted in 21 countries and regions outside mainland China. In Southeast Asia, in particular, it is increasingly smooth to pay with UnionPay QR code. Via the "UnionPay" app, users are also able to activate UnionPay mobile QuickPass service, which are accepted at more than one million POS terminals in Japan, Singapore, Australia, New Zealand, Canada, Russia, etc.

UnionPay is a member of ACT Canada; please visit www.unionpay.com.

 


 

9. HOW CAN REAL-TIME PAYMENTS BE SECURED?
Source: Mobile Payments Today (06/25)

In today's on-demand world, we expect to be able to spend, move and receive money instantly.  For this reason, real-time payments (RTP), also known as 'faster payments' or 'instant payments', are gaining momentum globally. Accenture estimates that there are now 35 countries with real-time payment schemes in operation or under development.  With account-based fraud on the rise, however, the move from standard to real-time transactions is causing significant security challenges for central banks and clearing houses.

Understanding account-based fraud 
Most fraudsters will usually follow the path of least resistance.  The success of anti-fraud measures like EMV chip, EMV 3-D Secure and payment tokenization in mitigating card fraud in-store and online means fraudsters are turning elsewhere. 

For various reasons, demand deposit account (DDA) credentials, which relate to current, savings or checking accounts that are used for direct credit transactions through automated clearing house processing, are an increasingly attractive target.

DDA credentials are already stored in their raw form across various locations, such as e-commerce websites, mobile and P2P wallets, invoices and payroll. 

While the frequency and public awareness of ACH fraud is much lower than credit and debit compromises, the average value of unauthorized ACH transactions is actually much higher. This creates the potential for very large value frauds, and even systemic attacks against national payment systems.

Despite the threat, many central banks don't actively monitor some of these types of fraud, with losses below a certain limit written off as a cost of doing business.

The move from standard to real-time transactions adds another layer of complexity and creates further opportunities for fraudsters. Quicker transaction times increase the chances of fraudulent transactions going undetected.

Faster payments = faster fraud?
This is because banks currently rely on a layered approach combining various techniques. But somewhat surprisingly in today's automated world, checking payment mandates and unusual account activity manually remains a mainstay of the traditional clearance process.

The problem is, manual review is simply not feasible when the clearance time for account-to-account transactions is measured in seconds, not days.

Importantly, fraudsters recognize the challenges facing banks when transitioning and are ready to exploit any vulnerabilities as soon as a RTP scheme goes live.

Banks need to get ahead, be proactive and protect the account data itself, rather than simply be reactive and wait for the fraudsters to strike.

Securing real-time payments with tokenization
Enter tokenization.

Tokenization has been hugely successful in safeguarding payments in-store and online by replacing the consumer's primary account number (PAN) with a unique payment token that is restricted in its usage, for example, to a specific device, merchant, transaction type or channel.

By removing account numbers from the transaction process entirely, tokenization can significantly reduce the risk and impact of account-based fraud to support the development of a safe and secure instant payments framework.

The good news is that tokenization is easily transferable to account-based transactions, is complementary to other anti-fraud measures, and is easily compatible with existing systems.

Account data, faster and safer
For banks, ACH fraud represents a bigger financial risk than card fraud and is going to become harder to manage as real-time payments become the norm. The ecosystem must work to mitigate fraud before it has been attempted. Tokenization, therefore, is primed to play a pivotal role within the broader security mix.

 


 

10. WHY PRIVACY MUST BE BAKED INTO IOT DEVICES
Source: PYMNTS.com (06/21)

A connected world is a convenient world for both work and play. Too often, however, the price of convenience is privacy. If data within the Internet of Things (IoT) is not secured properly, it puts people's overall safety in jeopardy — and it's not just about loss of sensitive personal data.

In fact, according to UL, the even greater threat is that an attacker could take over the functionality of poorly secured devices. Imagine if someone hacked into a connected home and cranked up the heat through the IoT thermostat, took over appliances or, worst of all, gained control of medical devices, such as pacemakers and insulin pumps that could create a life-or-death scenario in the wrong hands.

Isabelle Noblanc, VP and general manager, Identity Management and Security at UL, said the answer to these concerns is to practice security and privacy by design, not as an afterthought. When developing IoT technologies, she said, go-to-market time is much too late to think about security.

"Security isn't the hot sauce you add on the side," Noblanc said. "It's a key ingredient to any system, and it's something IoT manufacturers need to think about from the very beginning."

In a recent interview with PYMNTS, Noblanc explained how traditional identity management and authentication models must be rethought and re-engineered, moving control from enterprise contexts into the hands of end users.

The Evolution of IoT

The phrase "Internet of Things" may be a relatively new term, but the concept, said Noblanc, is anything but new. The world has long been transforming into a more connected place. Today's dramatic transformations are just increasing the trend and adding more complexity to it.

This complexity is the reason traditional identity management must be rethought, Noblanc said. It was once enough for people to use resources within an enterprise context — managed by, for instance, Microsoft Active Directory and similar solutions — but now, she said, it is necessary to bring resources into the end consumer environment, where machines are connected to machines and mutual authentication is needed.

Since there are so many devices by so many brands, Noblanc said communication and authentication protocols must be interoperable — that is, they must be able to handle things produced by multiple vendors. This gives end users self-control and freedom of choice in terms of brand, rather than presenting options that are either convenient or secure and forcing consumers to pick one.

Today's privacy and security solutions must be both convenient and secure, said Noblanc, and they must be that way by design, from day one.

Pros and Cons of Regionalization

Many organizations take different approaches to security depending on the region, product or business line. A customized approach, Noblanc explained, enables them to meet compliance and regulatory standards, which vary by region.

It also makes it possible to adapt the protection level to match the potential consequences of a security breach. Situations where a breach could have massive repercussions require greater security, driving a need for a stronger customized approach, she said.

However, when everything is connected, the network is only as strong as its weakest link. In the IoT, data that's generated is held and accessed by third parties, which can open new attack angles for organizations that fail to take a holistic approach.

Therefore, even if individual elements are secure, the system, as a whole, may not be. Noblanc said organizations must now apply an end-to-end approach and move toward looking at things globally rather than individually, considering systems rather than products.

Digital Identities Must Be Trustworthy

Whether in business or in personal life, people are growing more dependent on tech, to the point where it becomes a handicap if the devices in their lives can't trust them or each other. For instance, if a smart car can't definitively authenticate a driver, then that person will not be able to get in or drive it.

People today have digital versions of themselves and are entrusting more valuable interactions to those digital selves, particularly in the payments space — where, Noblanc noted, banks are taking more risks than they once did due to the trust they have in those digital identities.

Strong security and identity management are about creating trust, she said, and that must be done from the ground up. Only when the core of trust is in place should an organization consider innovation and expansion from that core to introduce higher-value services.

In other words, digital identities are the foundation or base for the IoT, and the foundation or base for digital identities is trust. Therefore, said Noblanc, the whole system suffers and falls apart if digital identities are not managed securely. She reiterated that this must be at the forefront of developers' minds.

"The minute a digital product starts interacting with others," Noblanc said, "digital credentials become paramount."

UL is a member of ACT Canada; please visit ims.ul.com.

 


 

11. INTERAC, BAMBORA IGNITE X-BORDER ECOMMERCE PAYMENTS
Source: PYMNTS.com (06/06)

Through an effort with international payment service provider Bambora, Interac Corp. will soon allow Canadians to use Interac Debit to pay for eCommerce purchases from merchants domestically and cross-border, Interac said in an announcement.

"Our work with Bambora will take Interac Debit for eCommerce across the border and extend its many advantages to international merchants serving Canadian customers online," Nader Henin, director, digital payments at Interac said in the announcement. "This is another example of the way we at Interac are continually expanding payment choice and convenience for Canadian consumers and merchants."

With the effort, Interac and Bambora's work could help the many small- and medium-sized businesses that already use Bambora by enabling them to take advantage of Interac's debit base. In addition, Henin said that international merchants will benefit from the Interac Debit "good funds" model: The risk of chargebacks is eliminated through this structure, as payors' funds are immediately deducted from their bank accounts.

"Working with Interac is another example of how Bambora helps businesses accelerate growth and scale with simple and secure payment solutions," Tristan Kenning, head of product at Bambora within North America, said in the announcement. "Reaching beyond the Canadian border will give international businesses new ways for Canadians to pay. For businesses, using Interac Debit for eCommerce transactions will give them a wider customer base, eliminate chargebacks and lead to higher conversions."

In addition, international merchants will gain access to the Canadian Interac Debit network. As a result, they can grow their digital footprint in Canada while using Interac's security framework and fraud prevention measures.

Today, Interac is chosen an average of 16 million times daily to pay and exchange money. The organization, along with its predecessors – Interac Association and Acxsys Corporation – have facilitated financial transactions for more than 30 years. And Bambora is a collection of companies with decades of experience in the payments industry.

Interac and Bambora are members of ACT Canada; please visit www.interac.ca & www.bambora.com.

 


 

12. NATIONAL BANK LAUNCHES MPOS PRODUCT IN MONTREAL
Source: Digital Transaction (06/22)

Montreal-based National Bank's SME clients can now use National Bank Easy Pay, a mobile point-of-sale product powered by Montreal fintech Mobeewave.

National Bank also is partnering with Global Payments on Easy Pay, according to a press release.

With Easy Pay, merchants can accept payments in person using a compatible smartphone without the need for a peripheral. After registering for the Easy Pay, they simply download the Easy Pay app in order to accept payments from customers using an eligible contactless credit card or via the customer's digital wallet.

Security and confidentiality are at the core of Mobeewave's technology, according to the release. National Bank Easy Pay uses NFC, which encrypts and secures personal user information. No sensitive information is saved on the merchant's device.

"We're very proud to be the first Canadian financial institution to offer this convenient, quick and secure mobile point-of-sale solution to Canadian SME owners," Lionel Pimpin, senior vice president of Digital Channels at National Bank, said in the release. "By collaborating with Montreal fintech Mobeewave and our long-standing partner Global Payments, we're able to quickly roll out this innovative project for our clients"

Global Payments is a member of ACT Canada; please visit www.globalpaymentsinc.com.


 

13. UL FIRST LAB RECOGNIZED BY PCI SECURITY STANDARDS COUNCIL TO PERFORM SOFTWARE-BASED PIN ENTRY ON COTS (SPOC) SECURITY EVALUATIONS
Source: UL (06/11)

UL is proud to announce that PCI SSC has qualified and approved UL as the first lab to perform Software-Based PIN on COTS (SPoC) Evaluations.  PCI released the security requirements for their new standard – Software-Based PIN Entry on COTS (SPoC) in January. Implementation of this standard allows for EMV contact and contactless transactions with PIN entry on the merchant's consumer device using a secure PIN entry application in combination with a Secure Card Reader for PIN (SCRP).

"PIN on COTS is helping to enable secure payment options in cashless societies," says Isabelle Noblanc, UL's VP & GM for Identity Management & Security. "UL is proud to have the first labs in the world to provide this critical security evaluation."

The Software PIN on COTS standard is expected to drive considerable innovation in the payment market and to advance the disruption in the payment landscape that has been expanding rapidly over the last years. Andrew Jamieson, UL Director of Technology and Security states, "with this accreditation UL continues to prove that we are at the forefront of the fintech revolution, facilitating the business of our customers whilst ensuring that the market needs for security and interoperability are properly met."

UL is excited to support their customers in the evaluation of new SPoC solutions. The first full evaluations are scheduled to kick-off immediately with market-leading global brands. The first SPoC compliant systems are expected to have successfully completed the evaluation and be available by end of the year.

With more and more businesses accepting payments via smartphones, tablets or other COTS devices, UL's SPoC security evaluation will bring these businesses and their customers the best available protection for their payment data. Providing trusted and critical security solutions, essential for mitigating risk for an interconnected and cashless world.

UL is a member of ACT Canada; please visit ims.ul.com.

 


 

14. GEMALTO BRINGS SECURE, MULTI-FACTOR AUTHENTICATION TO BELGIUM'S PIONEERING NATIONAL MOBILE IDENTITY SCHEME ITSME
Source: Gemalto (06/05)

Gemalto has enabled Belgian mobile ID scheme itsme to enroll 350,000 users and securely process one million transactions per month for both private and public online services – making it one of the most successful mobile ID applications in Europe within one year of launch. As well as bringing greater convenience to consumers, itsme provides merchants, government, and financial institutions with strong, multi-factor authentication that is fully compliant with PSD2, GDPR and is certified for eIDAS.

itsme was developed by Belgian Mobile ID, a consortium of Belgium's leading banks and mobile network operators, in close collaboration with Gemalto. It has been officially recognized by the Belgian government as a way for citizens to connect to numerous online public services, including taxation, pensions and health, as well as online banking and mobile operator services. In its first year the app is already being used widely, with the average user completing six banking transactions and three e-Government transactions each month.

In an increasingly digital world with growing numbers of government services moving online, a secure digital identity scheme allows consumers to prove who they are. The itsme app allows users to create a 100% verifiable ID to safely and easily confirm their identity and approve transactions with their mobile phone, meaning they can access services on-the-go with one single login. The seamless service grants access to a wide portfolio of services, including those related to telecoms, financials, HR, and health, without having to fill in a time-consuming form each time. itsme will also provide users in the near future with a qualified e-signature that is the legal equivalent of a handwritten signature, which they can use to easily sign documents.

Following many years of collaboration in the fields of banking and mobile payment security, Belgian Mobile ID tasked Gemalto with providing robust, end-to-end security for the itsme app. Gemalto's strong mobile authentication solution, using the latest biometric technology combined with digital identity expertise, provides the highest level of security for users to access services, confirm transactions and sign for private and government online applications. As a result, users stay in control of their data, managing privacy in a secure environment that protects them from fraud and security breaches.

Kris de Ryck, CEO, Belgian Mobile ID, commented, "The itsme app is a significant milestone on the digital roadmap of Belgium and we could not have done it without Gemalto. Our partnership helps us provide a truly innovative and 100% secure approach to accessing online services. While Belgian citizens are leading the world in embracing technology in this Mobile Identity scheme, we hope our partnership will be an example for other countries in Europe to provide seamless and secure connections to online public services with itsme."

Philippe Vallee, CEO, Gemalto, added, "In an increasingly digital world the need for stronger and more trusted digital identities is growing. We know that consumers want their data to be secure, but they also want a painless and hassle-free experience when accessing online services. We hope that this is just the start and that further cooperation in this field will lead to more schemes providing a seamless online experience for everyone in Europe across many different sectors."

Gemalto CEO Philippe Vallee and Kris De Ryck, CEO of Belgian Mobile ID, will be speaking on the topic of Digital identity at Money 20/20 in Amsterdam, on 5 June at 11.50am on the High Wire Stage.

In addition, stop by stand B50 to discover itsme in action and to hear more about the latest innovations from Gemalto that can help your brand capitalize on existing and new technologies while ensuring simple, secure and enjoyable customer journeys.

Gemalto is a member of ACT Canada; please visit www.gemalto.com.

 


 

15. NEW MASTERCARD SERVICE SPEEDS ADOPTION OF ARTIFICIAL INTELLIGENCE
Source: Mastercard (06/04)

Many companies today want to tap into artificial intelligence quickly but are not sure where to start. With the launch of AI Express, Mastercard will help companies develop a tailored artificial intelligence model that answers real business questions and can be swiftly deployed. Interest in artificial intelligence is strong: More than 80 percent of Fortune 500 CEOs see the technology as very or extremely important to their company's future, according to a study by Fortune. Viewed as a vital capability for industries that have rich data, many companies still lack the experience and expertise to extract the intelligence that can improve consumers' experience.

"If data is the oil that powers the digital economy, artificial intelligence is the refinery," said Ajay Bhalla, chief security solutions officer at Mastercard. "Mastercard has gained significant experience in the application of AI at scale in a mission critical environment. For companies looking to take advantage of the technology today, AI Express offers quick results along with the know-how to move forward with a full-fledged artificial intelligence deployment."

The AI Express program was designed to help companies address key business priorities, including:

  • Anti-money laundering
  • Fraud risk management
  • Cyber security
  • Credit risk prediction
  • Operational efficiencies

AI Express is one example of how the Brighterion capabilities are helping Mastercard play an active role in accelerating the adoption of artificial intelligence and machine learning by opening up its proven platform to the wider industry. The capability is built into the multi-layered security strategy of the Mastercard network to act within milliseconds to detect and manage fraud. The systems continually get smarter and power proven Mastercard security solutions like Decision Intelligence, Safety Net, Early Detection, Authorization IQ. Now, AI Express enables Mastercard customers to benefit directly from the same advanced artificial intelligence capability.

Mastercard is a member of ACT Canada; please visit www.mastercard.com.

 


 

16. ALIPAY LAUNCHES A WALLET-BASED CROSS-BORDER MONEY-TRANSFER SERVICE USING BLOCKCHAIN
Source: Digital Transactions (06/25)

Payments observers wondering when, and where, blockchain technology would take hold may want to pay close attention to cross-border remittances. Alipay Payment Services (HK) Ltd. said on Monday that it has launched a mobile-wallet based money-transfer service between Hong Kong and the Philippines using a blockchain backbone.

The service, which works with the digital wallet GCash from the Philippines-based Globe Telecom, allows streamlined remittances between individuals, according to the release. In particular, it is aimed at Filipinos residing in Hong Kong who want to send money home. "What used to be a long process of physically going to a remittance booth, queuing in line for hours, and filling out forms, is now easily and securely done over the mobile phone in just a few seconds," said Jennifer Tan, chief executive of AlipayHK, in a statement.

Among the new service's advantages is that its distributed ledger allows operators to verify and process transactions simultaneously, Alipay says. Standard Chartered Bank is providing the banking links, the company says. Users may also track payments as they occur.

China's Ant Financial Services Group and its Alipay online-payments service have been working on blockchain technology since 2015, and clearly plan further investment in the technology. "Blockchain is revolutionizing the remittance industry, and we look forward to further innovating and expanding the application of the technology in global remittances, together with local wallet partners and other ecosystem partners," said Eric Jing, executive chairman and chief executive of Ant Financial, in a statement.

Ant Financial, best known in North America as a major provider of mobile-payments services through its Alipay unit, made a big play for global remittance capability last year with an $880 million offer to acquire MoneyGram International Inc. Ant called the deal off early in January after running into resistance from the U.S government. Under the merger agreement's terms, an Ant affiliate agreed to pay a $30-million termination fee to MoneyGram.

Nor is the Hong Kong-to-the Philippines transfer service the first effort to harness blockchain for cross-border remittances. Ripple, a San Francisco-based provider of distributed-ledger-based payments platforms, said in April that five payments services overseas had signed on to use the company's xVia application programming interface. The API works with Ripple's RippleNet network to speed transfers, cut operational costs, and increase operators' visibility into payments, Ripple said.

Worldwide, Alipay claims 870 million active users for its payments services. Ant Financial, which this month raised about $14 billion in new funding, has been investigating technologies besides blockchain in recent years, including artificial intelligence and facial recognition. It introduced the latter capability in September through Alipay.

 


 

17. RBC GIVES CLIENTS THE POWER TO CONTROL THEIR CREDIT CARDS THROUGH THE RBC MOBILE APP
Source: RBC (06/25)

We've all been there. You open your wallet and your credit card isn't where it should be. You mentally retrace your steps wondering if you left it in your car, the last store you visited, or if your toddler has "borrowed" it and left it in the toy box. RBC has introduced a new functionality through the RBC Mobile app to help clients who have misplaced their credit cards, without going through the hassle of ordering a new one.

Credit card controls allows RBC Mobile clients to place or remove a temporary lock on their credit cards with a simple action. Clients can lock their card if they've misplaced it, or if they're travelling without it.

"We know that many of our clients who report their credit card as lost end up finding it, creating the inconvenience of having to wait for a replacement card," says Sean Amato-Gauci, Executive Vice President, Cards, Payments & Banking, RBC. "Client expectations are evolving, and credit card controls are another way we're making it easier for clients to do business with us. This new feature takes the stress out of misplacing your credit card, and helps our clients take their time to retrace their steps and find their card, while giving them peace of mind that their money is safely protected by RBC."

Credit card controls can be accessed through the RBC Mobile app. Clients simply log in and navigate to the account details page of the credit card they wish to place or remove a lock from. Temporary locks can be placed or removed with a simple action. While the credit card is locked, purchases and cash advances will be blocked, while payments, refunds and preauthorized charges such as subscriptions and bill payments will be processed as usual, giving clients peace of mind, and control over their card.

"We're using digital to better understand our clients and completely rethink how we can deliver services that make the day-to-day banking experience delightfully simple and convenient for our clients," says Peter Tilton, Senior Vice President, Digital, RBC. "We know that more than 85 per cent of our retail transactions are performed by clients in a self-serve channel, which is proof that our clients want digital solutions like credit card controls at their fingertips."

RBC is digitizing the everyday banking experience through the RBC Mobile app, which is why we provide a host of embedded value-added services to clients, such as credit card controls, our Siri capabilities, and NOMI Insights and NOMI Find & Save.

RBC leads the financial services industry with the best mobile banking experience in Canada. The RBC Mobile app has been rated #1 in customer satisfaction by J.D. Power and our clients for the second year in a row. We're also outperforming our Canadian peers across a range of key digital performance indicators, including digital sales and digital client retention.

RBC has seen an increase of 19 per cent in active mobile users over the past year, a clear indication that more Canadians are using the RBC Mobile app to bank whenever and wherever they want. In Q1 2018, our clients officially made mobile banking their primary digital channel for financial transactions.

Royal Bank of Canada is a member of ACT Canada; please visit www.rbc.com.

 


 

18. PAYSTAND EXTENDS PAYMENTS-AS-A-SERVICE PLATFORM INTO CANADA
Source: Finextra (06/12)

PayStandPayStand, the B2B payment platform for the future of business, today announced that it has expanded its digital platform into Canada to support domestic B2B commercial payments and deepen its global payments infrastructure.

"Today's commercial payments infrastructure in Canada is built on many layers of outdated technology and processes that are needlessly complex and time-consuming, not to mention error-prone and labor-intensive," said Jeremy Almond, CEO and Founder, PayStand. "PayStand has built a unique infrastructure capable of natively supporting Canadian electronic funds transfer (EFT) and card payment technology, essentially transforming and modernizing the entire payments lifecycle for businesses, no matter the type or manner of payment."

Canadian B2B payments over EFT account for greater than one third of all payments volume domestically, with card payments making up a large majority of the remainder. Those payments —whether made via bank-to-bank transfer, wire or check—are almost entirely manual, and often over-burdened by high transactions fees and processing costs. With the launch of PayStand's unique digital payments platform, Canadian businesses now have a real option to modernize their invoicing and payments process by using cloud-based technology that speeds up time-to-cash, automates manual processes and eliminates transactions fees.

PayStand's expansion into Canada represents a significant next step in the company's acceleration, further expanding its global payments infrastructure. By digitizing the commercial infrastructure required to support Canadian B2B payments, PayStand is uniquely positioned for growth and is the only cloud-based solution provider to offer native support for both United States and Canadian payments. Existing and new customers can now use Paystand's PaaS technology to process domestic and cross-border payments—another significant growth vector.

Streamlining B2B payments through automation using Blockchain and secure, cloud-based technology represents the future of how businesses will transact, both domestically and on a global scale. Paystand empowers companies to up-level their existing payments processes and is ushering in a modern infrastructure to define the future of the entire payments lifecycle.

 


19. INTERAC TAPPING INTO KITCHENER'S COMMUNITECH
Source: Kitchener Post (06/19)

Interac, the payment brand used by Canadians an average of 16 million times per day, is the latest tenant to join Communitech's corporate innovation space.

The launch held last week in downtown Kitchener briefly looked back on the company's evolution, beginning with various iterations of debit in the late 1980s.

Today, people can tap their bank cards and mobile devices to make purchases in stores and can pay their rent or make other payments with e-Transfer.

On June 1, Interac reported a record two million e-Transfer transactions in one day, with the use of service increasing at a rate of 50 per cent year-over-year.

"Opening the Interac Lab positions the company to continue to evolve as the payments sphere changes," said Debbie Gamble, the company's vice president of digital products and platforms.

"Our role here is to continue our innovation journey, and what better place to do that than in Kitchener-Waterloo. You've got the second largest startup community in the world, you've got an incredible set of corporations that are participating in the innovation space, and probably most important, you have the academic entities."

Tricia Gruetzmacher, director of the Interac Lab, said she's planning to look at a variety of products to see what Interac can build upon.

"Looking at one of the projects we have in a demo right now for public consumption coming is e-Transfer APIs (application programming interfaces)," she said.

For example, some landlords receive thousands of e-transfers from tenants and would like a web application tool to keep track of payments, Gruetzmacher said.

"That's just one of the small things we can do."

Interac participated in a hack-a-thon at the beginning of the year and hosted a Collision Day at Communitech in 2017, offering cash prizes. Both programs provided access to a beta-version of Interac e-Transfer Public API, allowing participants to build on the platform.

"We had amazing results from that challenge," Gamble said.

"We'll also be looking at some new technologies — it might be voice, blockchain or how we leverage artificial intelligence. What do we think about the future of quantum technology or cryptography to continue to provide secure capabilities?"

Interac's headquarters in downtown Toronto employs just under of 300 people, and this is the company's first outpost. The lab will operate with two full- time staff members and two rotating co-op students to start.

It joins 13 other companies and organizations with labs at Communitech, including General Motors, TD Canada Trust, the LCBO, the province of Ontario and the Workplace Safety Insurance Board.

"As an arm of the bigger team back in Toronto, this is an opportunity not just to collaborate with the startup community here, but the other corporate partners at Communitech, so we can think big and leverage the assets we have. But perhaps think outside of the box, which is typically a bit more challenging back in the head office," Gruetzmacher said.

"Here we want to test those smaller concepts before we go, 'OK, put it back into headquarters and figure out how to really bring that to market full-scale, for every province, every Canadian and in every language that we have in Canada," Gamble said.

"We want to give back as well," she noted. "We want to be able to share everything that works within here and contribute to that collaborative practice."

Interac is a member of ACT Canada; please visit www.interac.ca.

 


20. VENMO OFFICIALLY LAUNCHES COMPANION DEBIT CARD
Source: Digital Transactions (06/25)

After a year of tests, Venmo Monday officially launched a companion debit card to its popular mobile person-to-person app.

The card, which is MasterCard-branded and contactless, is in limited release. Perspective users can join a waiting list for the card via the Venmo app.

Venmo card users will have the ability to track purchases via the app's transaction history feature. Users also have the ability to withdraw cash for free through the MoneyPass ATM Network. Otherwise, transactions at non-MoneyPass ATMs have a $2.50 domestic withdrawal fee.

For those with Venmo notifications enabled, they'll be notified on their smartphone for every card purchase. Users also have the ability to disable a lost or stolen card via the app.

Mastercard is a member of ACT Canada; please visit www.mastercard.com.

 


 

21. FIS FACING $100B A YEAR IN CYBERATTACK LOSSES
Source: PYMNTS.com (06/25)

The impact from a cyberattack on financial institutions (FIs) could reach as high as a few hundred billion dollars annually, chipping away at profits and threatening the stability of financial firms, the International Monetary Fund (IMF) warned in a new report.

According to an IMF staff modeling exercise, the IMF found that FIs could lose that much each year because they are a target of hackers, and due to the role they plan in managing and handling funds. The IMF report said a successful hack of an FI could spread quickly through the interconnected financial system. What's more, the IMF said that lots of FIs use older systems that may not be able to fight off a cyberattack. That attack could result in financial losses, as well as a hit to the FIs' reputation, which could lead to more losses.

To ascertain the risk, the IMF used techniques from actuarial science and operational risk measurement to come up with total losses from cyberattacks. Taken "at face value," the IMF said the study suggests the average annual potential losses from cyberattacks could be nearly 9 percent of banks' net income globally, or around $100 billion. In a severe scenario where cyberattacks are frequent, the hit would be two-and-half to three-and-a-half times as high, or between $270 billion and $350 billion. In the worst 5 percent of cases, the average potential loss could be as high as half of a bank's net income, which would place the entire financial sector at risk.

In addition, the IMF noted that the estimated losses are much bigger than the cyber insurance market, with premiums remaining small globally at around $3 billion as of last year, and most FIs not carrying cyber insurance. When they do, they get limited coverage with insurers, having a tough time evaluating the risk of cyberattack exposure, noted the IMF.  The IMF said there is a way to improve the risks, pointing to governments collecting more "granular, consistent and complete data on the frequency and impact of cyberattacks." The IMF said that would help assess risk for the financial sector.

The IMF wrote in the report, "Requirements to report breaches — such as considered under the EU's General Data Protection Regulation [GDPR] — should improve knowledge of cyberattacks. Scenario analysis could be used to develop a comprehensive assessment of how cyberattacks could spread and design adequate responses by private institutions and governments."

 


ACT Canada helps members understand complex issues and filter truth from market noise for current and emerging commerce trends.  Through a consultative approach with all stakeholder groups, the association provides knowledge and expertise to help members leverage opportunities, confront challenges and advance their businesses. Please visit www.actcda.com or contact our office at 1 905 426 6360.


Please forward any comments, suggestions, questions or articles to andrea.mcmullen@actcda.com. Please note that articles contained in this newsletter have been edited for length, and are for information purposes only. If you would like to be removed from our newsletter distribution list please follow the unsubscribe instructions at the bottom of the email.


Andrea McMullen
President | ACT Canada
905 426-6360 ext. 124 | andrea.mcmullen@actcda.com | www.actcda.com
http://ca.linkedin.com/in/andreamcmullen


ACT Canada helps members to:

Engage - Grow the commerce community via stakeholder contributions, collaboration and networking
Enable - Provide access to the expertise of the member community to gain insights that will help strategic decision-making
Evolve - Drive positive change in the increasingly complex commerce environment

For more information, please contact Andrea McMullen at 1 905 426-6360 ext 124 or email andrea.mcmullen@actcda.com.

Please forward any comments, suggestions, questions or articles to andrea.mcmullen@actcda.com. Please note that articles contained in this newsletter have been edited for length, and are for information purposes only.