Banks in South Africa hold the key to whether mobile payment systems like Apple Pay could be widely adopted in the country, writes DUNCAN ALFREDS.
Apple Pay and Google Wallet enable users to make payments directly and securely from smartphones. Both of these payment systems use the Europay, Mastercard and Visa (EMV), or chip-and-PIN, standard.
This means that an Apple Pay or Google Wallet could be simply linked to a credit or debit card, and users pay by tapping their NFC (Near Field Communication) enabled phone on a point of sale terminal. With the iPhone 6, users can also authorise payments with their fingerprints.
Apple Pay has recently been launched in the UK after it received a cool reception in the US. Meanwhile, Google Wallet is also slowly rolling out with a limited number of merchants. Google, though, has built the technology into its online Play Store system as well.
South Africa has adopted the international EMV standard, meaning that Apple Pay and Google Wallet could work in the country especially with regard to processing contactless payments.
But unlocking Apple Pay and Google Wallet for South African consumers requires the approval of local banks.
“There is however a big catch before Apple Pay and Android Pay will work in South Africa. The customer’s bank that issued their card must give permission to Apple and Google to allow their cards to be loaded to the Apple Pay or Android Pay application,” Craig Kilfoil, managing director of ExactConsult, told Fin24.
“In summary, if the big five banks don’t want Apple Pay or Android Pay to work in South Africa then it simply won’t happen because the big five banks control the merchant card acceptance infrastructure and completely dominate card issuance in South Africa and as much as Apple and Goggle might make the mobile payment technology available, it just won’t work without the permission and co-operation of the banks,” said Kilfoil.
Even though the payment systems from Apple and Google are advertised as unique, Kilfoil argued that they may be far in common than initially thought.
“While neither obvious nor advertised by Apple and Google as such, I have concluded that Apple Pay and now Android Pay are 100% interoperable as they are both built on Visa and MasterCard Chip card technology called EMV.”
In some markets, the technology is already in use, but roll-out in SA has been delayed because of the lack of devices that support the standard.
In the meantime, banks have marketed cards with so-called “tap-and-pay” technology, but it is not a huge jump to expand the functionality to appropriate smartphones.
Ultimately, the banks hold the cards in terms of the roll-out of mobile contactless payments, said Kilfoil.
“FNB, Absa, Standard Bank, Nedbank and all the others would need to allow for their cards to be loaded to the mobile phone apps in order for them to work.”
A survey has found that few companies are ready for mobile e-commerce, despite the massive handset penetration in the country.
The wiGroup Fast Company SME Mobile Readiness Survey found that 35% allowed customers to make purchases on mobile devices.
But mobile payments are likely to increase in importance as more people turn to smartphones to transact.
Globally, Juniper Research reports that mobile e-commerce sales amounted to $1.5 trillion in 2013, and is projected to hit over $3.2 trillion by 2017.
Convenience, cost, risk
Kilfoil said that the key for retailers was to balance convenience, cost and risk to encourage consumers to adopt mobile payments.
“If convenience is a key factor and the added cost is minor with little perceived additional risk then consumers that value convenience will adopt new payment method.”
Kilfoil will be presenting his findings into the mobile payments industry at Cashless Payments Summit on June 25 – 26 2015 at Emperors Palace Hotel in Johannesburg.
* Follow Gadget on Twitter on @GadgetZA
AppDate: DStv taps Xbox, Hisense for app
DStv Now app expands, FNB gets Snapchat lens, Spotify offers data saver mode, in SEAN BACHER’s apps roundup
DStv Now for Xbox and Hisense
Usage of DStv Now, the online DStv service available free to DStv customers, is increasing rapidly with more than two million plays of live and Catch Up content per week. In addition to using DStv Now to watch TV on tablets and smartphones, an increasing number of DStv customers are also opting to use it as their primary method of getting DStv on additional TVs in the house. This is set to increase with the release of two new big-screen TV apps, one for Xbox gaming consoles (Xbox One, Xbox One S, Xbox One X) and another for Hisense smart TVs (2018 and newer models).
Expect to pay: A free download.
Platform: Any of the Xbox One range of gaming consoles and 2018 or later Hisense smart TVs.
Stockists: Visit the store linked to your Xbox console or HiSense smart TV.
Santam Safety Ideas
Start-up businesses that have a FinTech or InsurTech business venture brewing are called to enter the third annual Santam Safety Ideas competition. Safety solutions or InsurTech ventures that are ready for piloting could win up to R150 000 worth of incubation support and R200 000 in seed funding.
The Safety Ideas competition was launched two years ago in partnership with LaunchLab, Stellenbosch University’s startup incubator that facilitates valuable connections for corporates and startups sourced from the startup ecosystem and partner universities in South Africa. The previous winners are Herman Bester and Anton Swanevelder, co-founders of MyLifeLine – a wearable panic device that won the competition last year; and Ntsako Mgiba and Ntandoyenkosi Shezi, co-founders of Jonga – a cost-effective security system for low income families, which won the competition in 2017.
Entries close on 28 February 2019. For more information on how to enter, visit: www.santam.co.za/safetyideas/
Click here to read about the FNB Snapchat lens, Spotify Free with data saver, and 00:37.
Fortnite fixes hackers’ hole
Epic Games has repaired a vulnerability that exposed Fortnite, the world’s most popular game of the moment, to hackers. The hole, which was left in Epic’s web infrastructure, allowed hackers to target players with email that appeared to come from Epic Games, but would have led them to a phishing site, where their log-in details would have been stolen.
Researchers at cyber security solutions provider Check Point Software alerted Epic to vulnerabilities that could have affected any player of the hugely popular online battle game.
Fortnite has nearly 80 million players worldwide. The game is popular on all gaming platforms, including Android, iOS, PC via Microsoft Windows and consoles such as Xbox One and PlayStation 4. In addition to casual players, Fortnite is used by professional gamers who stream their sessions online, and is popular with e-sports enthusiasts.
If exploited, the vulnerability would have given an attacker full access to a user’s account and their personal information as well as enabling them to purchase virtual in-game currency using the victim’s payment card details. The vulnerability would also have allowed for a massive invasion of privacy, as an attacker could listen to in-game chatter as well as surrounding sounds and conversations within the victim’s home or other location of play.
While Fortnite players had previously been targeted by scams that deceived them into logging into fake websites that promised to generate Fortnite’s ‘V-Buck’ in-game currency, these new vulnerabilities could have been exploited without the player handing over any login details
Click here to read how the Fortnite hack worked
To win a set of three Fortnite Funko Pop Figurines, click here.