2015 was a notable year for mobile payments, as new mobile wallets emerged causing more competition for Apple Pay®. Last year also marked the launch of EMV technology, which changed the way transactions occur. With technology rapidly progressing, it is vital that the payments industry continues to enhance fraud prevention and intensify security measures to prevent criminals from attacking.   

 

With 2016 now almost halfway through, several new trends in regards to mobile payments have begun to surface. Here are some of the most popular mobile payment trends expected to occur in the future: 

 

Pre and Post Authorization Tokens Will Expand
With many businesses now accepting a variety of payment methods, it is crucial for businesses to incorporate both pre and post tokenization to help safeguard against costly data breaches. Using both pre and post tokenization is also vital for businesses that store card information on file to help prevent fraud from occurring.

 

Pre authorization tokens, (otherwise referred as EMV tokens), come in handy for businesses that use mobile e-commerce or mobile payments. Before a transaction occurs, these tokens are sent to a consumer’s mobile Internet browser or mobile device and offer a fast and secure way for consumers to make a purchase utilizing a stored mobile payment solution. These tokens are an efficient way to access and store payment information in less secure situations such as a mobile transaction. 

 

Post authorization tokens, known as security tokens, are also useful for merchants. For businesses that store confidential payment information within their database, post tokenization enables them to securely collect the card information for future payments in a PCI-compliant manner. This stored information comes in handy for merchandise returns, future transactions, and loyalty solutions for businesses. 

 

Security Will Remain an Issue
According to a study conducted by Gemalto, nearly 72 percent of retailers feel that mobile payments and mobile wallets could place payment data at risk and 54 percent are uncertain if their current security measures are able to support these mobile platforms.  This same study revealed that mobile payments add up to just 9 percent of all payments currently, but within two years time this ratio is expected to increase significantly. 

 

"Looking forward, as companies move to accept newer payment methods, their own confidence in their ability to protect that data is not strong. The majority of respondents felt protection of payment data wasn't a top priority at their companies, and that the resources, technologies and personnel in place are insufficient. Despite the trend to implement newer payment methods, those in the 'IT security trenches' don't feel their organizations are ready. It is clearly critical for companies to look for and invest in solutions to close these data protection gaps, expeditiously," said Jean-Francois Schreiber, Senior Vice President for Identity, Data and Software Services at Gemalto. 

 

Cyber Criminals Will Follow Mobile Payments
Although the total usage and adoption rates for mobile payments are small in comparison to traditional card rates, mobile payments are predicted to triple within the U.S. during 2016 – this means almost one in five smartphone users plan to use mobile payments this year. With mobile payments on the rise, cyber criminals have now begun to target their motives toward mobile opportunities. 

 

Since many businesses are gearing up to accept a variety of alternative payments, it is important companies conduct an in-depth security assessment, become alert of the possible increased amount of attacks they may experience, and have a plan prepared to help cut down these threats. 

 

It is clear that mobile payment technology has substantial benefits and will help bring in additional revenue. However, businesses need to make sure to prepare for the possibility of a data breach and what proactive steps need to be put in place to help prevent a breach from happening. It is crucial for businesses to incorporate pre and post authorization tokenization, make security a top priority, and take note of cyber criminal’s patterns in relation to mobile payments.