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Ze Skylight - Goal #27 - It's all about money 💸

Ze Skylight (en pleine lucarne) : curation of the best links from across ZTP offices, every two weeks
Ze Skylight
Ze Skylight - Goal #27 - It's all about money 💸
By Ze Skylight ZTP • Issue #27 • View online
Ze Skylight (en pleine lucarne) : curation of the best links from across ZTP offices, every two weeks in your inbox.
AFM members : we host a conference regarding this topic tomorrow with Olivier Jamault, contributor of the World Payments Report, contact us for more informations !

Fraud prevention innovation : a new bank card uses a changeable CVV.
The card’s verification value (CVV) number has been introduced to reduce credit card fraud while purchasing online. But fraudsters can steal CVV data by using a web-based keylogger. In order to drastically enhance the security of Card-Not-Present (CNP) transactions, tech company Idemia has developed “Motion Code”, a technology that powers a dynamic CVV. In a nutshell, the traditional static 3-digit security code on the back of the card is replaced by a mini-screen, powered by a lithium battery and displaying a e-ink code which automatically refreshes every hour. This solution renders copying of card information useless. By the time would-be fraudsters try to use it, the stolen number will have already changed several times.
As this technology relies on a complex algorithm to automatically generate a new code, it remains seamless by not requiring any disruptive process such as installing a plugin.
Facial Recognition
Alipay to spend 450M USD to boost facial payment POS adoption across China
Alibaba’s fintech arm, Alipay is boosting sales of its POS device “Dragonfly” to pay using only face with second generation launched this week, with lower price and improved hardware design. The new version is 30% cheaper at RMB 1999 (EUR 264). As part of promotion plan, pre-sale discounts up to RMB 1200 (EUR 159) are given to encourage adoption among SME’s merchants and widen usage.
Ant Financial (Alipay’s mother company) first debuted the “smile-to-pay” facial recognition system in September 2017 for commercial use (K-Pro in Hangzhou or Hema Fresh) and then replaced it with the Dragonfly POS system in December 2018. They have been deployed in more than 300 cities across China and also earlier this month for the first time in Hong Kong. The technology is revolutionizing life of citizen being experimented in public transportation and shopping streets and cross industries such as medical and smart cities. Alipay has more than 900 million active users worldwide and leads facial recognition payment through strong partnerships with Megvii and Sensetime.
Yicai Global - Alipay to Spend USD448 Million Plugging New Face Scanner
Mobile in store
JCPenney had to shutdown mobile payment recently as Visa rolled out a new feature requesting the use of the chip card (EMV) instead of the magnetic stripe (MSD) in contactless payment terminals.
A few takeways :
  • The US still are way behind Europe regarding the use of the latests technologies in payment
  • JC Penney, which was among the firsts to adopt Apple Pay back in 2015 doesn’t seem to find it necessary to update its terminals, regarding the small use of mobile payments (still, in the US)
  • For most customers, ease of payment is the most important thing, and security isn’t really a matter : it has to be simple and the use of apple pay or google pay instead of pulling out a credit card isn’t always easier
a few of the recent answers JC Penney made on twitter recently
a few of the recent answers JC Penney made on twitter recently
JCPenney explains why it dropped Apple Pay – TechCrunch
The payment landscape in India
When it comes to the ecosystem of digital payments, India is supposed to have the most evolved system compared to 25 other countries included UK, China and Japan…
Demonetization couples of years ago, Government incentives and massive smartphone adoption, including convenience and cash back programs from e-commerce giant like Flipkart and Amazon have drastically increased the adoption of digital payments. Other reason like rise of non-banking payment institutions (payments bank, digital wallets, etc.)  and increasing consumer readiness to the digital payment platform have contributed to this shift.
According to a report by Google and Boston Consulting Group (BCG), the Indian digital payments industry is estimated to touch $500 billion by 2020, contributing 15 per cent to the country’s GDP. 
Digital payments now account for about 30% of transactions and continue to grow dramatically. The key leader is Paytm, used in approximately 30% of digital transactions followed by PhonePee (owned by Flipkart) and Mobikwik.
The GAFA are of course present with Google Pay, Amazon Pay and Whatsapp.
Ze Tweet
Bloomberg Opinion
There's a dramatic difference between who owns a credit card in China versus the U.S. ⬇️

🇨🇳 Just 21% of Chinese have access to a credit card
🇺🇸 More than two-thirds of Americans carry plastic
11:21 PM - 22 Apr 2019
Different countries, different use of credit cards, different landscape regarding payment.
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