The Central Eastern European Smart Card Association Conference (CEESCA), held on March 9th in Zagreb, is a membership-based association meeting for Central Eastern Europe. Most members come from Croatia and Slovenia, which makes CEESCA quite interesting for observing new trends in the region.
Hot topics from the conference included mPOS, authentication, loyalty, instant issuing and legislation. The mPOS business sector was particularly thoroughly elaborated, and its concept and targeted merchants were explained. Simply put, mPOS is a device with no data connection and no constant power connection, connected instead to a smartphone and as such, very inexpensive. Considered merchant segments are divided into four distinct groups: new merchants, existing merchants (the ones adding mPOS as an additional terminal), large retailers and field agents.
Experts claim that the biggest potential of mPOS lies in transport industries, insurance companies, SME and couriers. Therefore, telecom operators are considered to be natural sales agent, especially in the SME segment.
Two regulatory requirements regarding the authentication and transaction authorization were also discussed. The first is the European Banking Authority’s guideline on the security of the 2-factor authentication through Internet payments. The second is the big pending change widely known as PSD2, which is expected to be implemented into national legislation by the end of 2017.
The completely new approach to fraud prevention is good news for everyone. Authentication will shift from the device-centric model to the customer-centric approach and the multilayered user-centric approach. The second one uses client scoring to provide the most appropriate form of authentication. That includes monitoring customer behavior in real time as well as predicting customer authentication transactions.
There are also new trends in contactless payment – transactions with no PIN required are on the rise. One fine example is Australia, which increased the limit of such transactions to 70 EUR in order to stimulate development of contactless payment.