Millions of people have witnessed how technology has acted as a transforming agent in various fields, and the one related to the way of paying our bills does not escape it.
In this sense, it is necessary to refer to the people of Vector ITC Group who have stated that We are living through a time of great change, where the traditional means of payment, be it cash or card payment, evolves towards solutions associated with mobile payment and virtual money, among others.
The use of mobile phones will be essential in the future, both as a means of payment and as a way of interacting with commerce., predict those of the Spanish technological group, adding that the evolution of mobile payment is continuous, and is currently questioning whether it could surpass traditional face-to-face payment methods such as cash payment and debit / credit cards.
In this scenario, Vector ITC Group is working to offer solutions to companies and users; Among them, Air Wallet, designed for the new digital banking, but applicable to many other sectors. It is equipped with contactless technology and allows the user to make all payments through their smartphone in a secure and personalized way, centralizing all their payment and loyalty cards in the mobile.
Now, added to the above, the company has prepared a list with new trends in mobile payment (Big Pay, Host Card Emulation (HCE), Bitcoin & Blockchain, Proximity marketing and mP2P), delving into its attributes and various aspects.
Solutions that allow a customer to pay through their mobile phone, emulating a debit / credit card payment without the need to have any app or Wallet in the mobile phone associated with the card issuing bank.
These are free applications for clients; And the only thing they want is to create a dependency on the mobile device where other solutions are installed, such as Apple Pay, Samsung Pay or Android Pay.
Host Card Emulation (HCE)
These mobile payment solutions are based on the existence of a secure element where the customer's card data is stored. The secure element can reside in the SIM of the phone, in a mobile hardware component or in a software component.
As an interesting fact, it is worth mentioning that from the Android 4.4 version, Google incorporates the HCE (Host Card Emulation) service as a software component, which allows the emulation of a smart card.
For HCE solutions to be secure, Cloud based payments are required which allow the storage and management of card data in a secure way, as well as the tokenization key, so that the card data of the client is not transmitted by networks but instead a token is used.
There are many digital wallet solutions that have been developed using HCE as a means of payment and large banks have opted for this technology.
The big difference between the solution provided by banks and Big Pay is that the latter's wallets are multi-issuer, allowing you to store and use cards from different banks.
Bitcoin & Blockchain
It is already known that within the new means of payment Bitcoin appears as an electronic currency with which payments can be made safely using a shared accounting system based on cryptographic evidence of trust (Blockchain system).
Now, as far as how it goes, Vector ITC Group's explain that transactions are made between one Bitcoin wallet and another. Each operation is signed and carries information on both the previous and the following transaction, forming a chain of transactions where each link is necessary for total system verification.
In short, it is based on the old concept of a glass bank where customers can see at any time what is being done inside the bank since everything is done in a transparent way. This shared accounting or shared ledger allows the entire network to validate a transaction, thus guaranteeing its veracity.
With this solution, it is possible to buy in physical stores without interacting with a dependent.
How does it work? While in a shopping center, the user receives a message to the mobile with an offer from a nearby store, enters the store and purchases the item through his device; this, thanks to the use of Beacon (BLE) which is a Bluetooth-based RF (Radio Frequency) system, with a radius of action of about 40 meters and valid with both Apple and Android.
The P2P mechanisms are the most used, they are provided by banks through the traditional bank transfer using the IBAN and technological companies such as Paypal.
Currently, solutions are being developed to be able to pay someone else with their mobile phone simply by associating the phone contact with their IBAN.
These types of solutions are already being developed in Europe but locally in an area or country. As of today, there is no global solution at European level but work is being done on it. The Retail Payments Board (ERPB) has been created to regulate this type of payment. Work is also underway on a Distributed Proxy Lookup Service that enables the European level to map between a person's phone number and IBAN account.
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