Financial services and retail sales have evolved over the last decade. Millions are now using credit and debit cards with confidence, financial institutions are constantly looking at ways to provide innovative services on customer cards and at the same time targeting a bigger share of the market which is still dominated by cash transactions. Contactless payments are showing signs of growth as they allow the issuers to address the market of high frequency micropayment transactions.
According to research the total contactless payments market would reach $8.25 Billion by 2014. The US has the largest share of contactless payments, with most of the major financial entities offering the services to their customers. However, a vast number of financial institutions in Europe. Middle-East end Africa are yet to introduce contactless payment services. The untapped market has immense potential for a constant and massive stream of extra revenue for service poviders.
Simage Contactless Payment Solution
Simage Technologies offers a tumkey solution with a secure contactless chip that can be integrated into any portable device such as keyfob,sticker or card.
Variants of the keyfob come with LCD displays enabling the end users to read the OTP (One-time-Passwords) for online payments and transaction value for micropayments.
Contactless biometric readers allow for creating a complete payment infrastructure for micropayments. The readers connect with the central payment system (either Simage Transaction Platform or existing payment platforms) via multiple transport channels like GPRS, Ethernet etc.
The solution encompasses the attributes of speed, efficiency and security that are the primary factors in micropayments, predominantly seen in places such as fast food restaurants, mass transit ticketing, grocery stores etc.
Strong Multi-Factor Authentication
The solution ensures high level of security by using:
- Biometric verification
- Secret keys for securing the transactions/data
- User verification with PIN.
Fingerprint 'Match-On-Device' application is included in the keyfobs, stickers and cards to provide high security for user verification at the point-of-sale.
Benefits of the solution for the Issuer
The issuer benefits from four major areas
- Added Revenue - By addressing the market of micropayments the issuer is able to provide value-added-services and gain from this high frequency transactions segment
- Better Reliability And Security - offered contactless devices are extremely secure due to Multi-Factor authentication
- Customer Loyalty - Customers hold their contactless device to a contactless card reader and this allows for complete control over each transaction they do. So, contactless device issuers gain trust and loyalty from customers.
- Efficiency - Significantly reduces cost of operations and distribution. Allows for a streamlined process for payments with centralized control.
- Savings on operational cost as payment system centralized and less cash dealings
- Increased revenue as time for processing payments is significantly reduced. Merchant can address more customers at a given time period
- Long-term customer loyalty based on developed trust and reputation
End User Benefits
- Hassle-free and completely cashless transactions.
- Secure, easy-to-use and convenient Services can be integrated into a multitude of devices
- Pay anywhere and anytime
- Benefits from loyalty schemes introduced by the issuer.