We also have the new PSD2 regulatory requirements which will also have an impact in this regard with:
We can already start to see the potential impact of new players using open technology to participate in the financial services space. Its critical Visa understands these new technologies and we have a point of view. This could be actively developing new standards, developing new services or tracking their progress. One example is Blockchain. It’s still early days, but the example of Blockchain and Bitcoin or Cryptocurrency technology is clearly one that’s occupying a lot of very bright minds today and it certainly highlights the key factors of identity and trust in a distributed model.
Another area where we are seeing huge interest is in biometrics. In the past, authentication was a blunt instrument with only a couple of factors to work with and it was deployed on a binary, all-or-nothing basis. That’s changing fast. Today, there are many more factors to work with – geolocation, behavioural monitoring, device fingerprinting, biometrics.
- Used on a much more segmented, nuanced basis
- Getting to the stage where every issuer and every large merchant will have a repertoire of authentication methods to choose from
Today the technology is ready
At Visa Futures we heard from Anne Bouverot from Safran Identity and Security highlight three key areas for banks to consider when looking at biometrics:
- Systems architecture – where are you going to store the biometrics?
- What is the right biometric for the best user experience?
- Privacy is paramount – consider solutions such as the Visa biometrics CVM
New technologies have to be secure
They have to follow interoperable, common standards that fit together in a comprehensive strategy that isn’t going to create a gap in the payments system that fraudsters can exploit. At Visa we are focused on 4 key areas:
- Devaluing data: getting sensitive data out of the merchant environment
- Protecting data: safeguard data through standards
- Harnessing data: identify fraud before it occurs and increase confidence in approving good transactions
- Empowering the consumer: engage cardholders in fighting fraud (for example, real-time alerts)
Visa is playing a key role in ensuring that, as new technologies evolve, we continue to deliver the same trusted payment experience we always have.