A revolution is underway in the global payments infrastructure and that makes it a necessity to re-design systems to keep up with the “payments Joneses”
According Chris Hamilton, new chief executive officer of BankservAfrica, speaking at the recent Payments Association of South Africa (PASA) International Payments Conference 2016, discussions about payments infrastructure design are like discussions about plumbing and sewerage: “We all really need it but we don’t want to spend a lot of time talking about it.”
He described streamlining the payments industry as being “like herding cats”.
Hamkilton was chief executive of the Australian Payments Clearing Association Limited (APCA) for the past 10 years, allowing him insight into the approaches of different markets when redesigning payments to keep up with the demands of business and consumers.
“As an industry, we need to find a way to talk about this needed, fundamental change and do so systematically. System design doesn’t happen by itself, it needs intense collaboration.”
“To meet the future payment needs of our community and our economy, payments businesses need to approach payment system modernisation empirically, inclusively, holistically but above all collaboratively. The design process really matters.”
Payments systems vary between and even within countries. They are complex, and serve different agendas and business needs. One only has to look at the variation from PayPal to Bitcoin, Visa to Mastercard; and the range of secure options offered by individual banks.
Given the complexity, infrastructure redesign is costly, complicated and highly contentious, and thus only takes place every 20 or 30 years.
“The time for a new South African design, however, is now,” says Hamilton. “Otherwise, the SA economy will not have the basic plumbing it needs for the future. The world is undertaking a step-change in national payments infrastructure, from overnight batch with basic data to real-time, data-rich, flexible and layered. South Africa must join the trend, or be left behind.
“In doing this, all the hard questions are not technological, they are social and political. What will our users and our economy need in 10 years’ time? How do we resolve all the competing business and political agendas to make sure they get it? What is the role of the national regulator? There is much to learn from mistakes and successes overseas.”
Hamilton talked the delegates through various global “adventures in international payments modernisation, looking at what the United Kingdom, Canada, Australia and the United States of America have done towards renewing their payments infrastructure.
The results, he says, show the intricacies and difficulty in getting all parties – and agendas – synchronised.
“Since time immemorial, we have been expecting our customers to adapt the way they pay to our available ‘set of rails’. So if you want to buy something at the shop, you get out your card; if a business wants to pay a supplier, it must do so by scheduling a payment with its bank or, heaven forbid, write out a cheque the supplier must then present to another bank. There is nothing wrong with this; it is just the way the world looks right now. But will this do for the digital economy of the future where other aspects of our lives are fully online, real time and automated?
“We need to start thinking creatively now because new systems take a very long time to develop – at a minimum five years. This is not because of the technology; it’s because of all the competing business and policy interests. We must work out how our payment system is going to be used in 10 years’ time.”
This approach calls for a rigorous, inclusive process. The USA – the world’s largest and complex payment market – is the least designed because it is just too big. There are 13 000 payment institutions with millions of interested parties.
“The Federal Reserve Bank has taken on the job of trying to rationalise the USA’s payment system. They have in the last two years published their own consultation papers and received thousands of responses. They put together a task force of 300 people – made up of consumer and business representatives, service providers, consultants, and banks – to have a massive, industry-wide discussion happening in a public way.”
Australia’s New Payments Platform (NPP) felt like an overnight success because, in 2013, the Central Bank came out with a strategic review that compelled the industry to build a real-time payment system, he said. But the industry had already done most of the thinking work, starting in 2008. So the payments community was able to put together a well-designed proposal very quickly.
“So in 6 months we actually put together a community of bankers and published a proposal for a real time payment system which became the new payments platform.
“My view of the world is that, there is no substitute for the industry players doing it themselves, together. I’m accustomed to hearing, over my 15 year career in this game, banks saying: ‘We don’t like to work with other banks because it’s too high risk and never works.’ Yes it is high risk, but also high return. Co-created networks are always better than government-built networks or compliance-driven outcomes. Only the participants know how the whole thing really works.”
The base of good payment systems is empirical research that is “inquisitive, inclusive, and intentional,” plus gets business to lead.
“Streamlining the payments industry is still like herding cats. But a business-led process can be powerful and galvanising. It can also radically reduce the cost base, while revolutionising the industry.”
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.
Five key biometric facts
Due to their uniqueness, fingerprints are being used more and more to quickly identify and ensure the security of customers. CLAUDE LANGLEY, Regional Sales Manager, for Africa at HID Global Biometrics, outlines five facts about the technology.
How many times in a day are you expected to identify yourself? From when you arrive at work you are required to sign in, visiting your bank, receiving healthcare services… The list is endless. When a system knows who you are, you are able to do any number common, everyday activities. Your identity is unique and precious. It is also easily stolen and the target of many hackers across the globe. Technology is constantly evolving alongside the criminal element, always looking for ways to protect data and identity. One such solution happens to be biometrics and it is rapidly gaining traction in our increasingly complex modern world.
Reliable, secure and fundamentally YOU, unique biometric traits such as fingerprints are being used by banks, enterprises and consumers to verify identity. Biometric solutions offer significant identity protection because they use unique biological details to ensure an account is only accessed by the account holder, a door only opened by the owner. Here are five things that are little known about this technology…
- The uncut identity. Your fingerprint is unique to you. Nobody can use a copy of it to impersonate you. Good technology is capable of scanning down into the layers of the fingertip to differentiate unique elements of a person’s fingerprint, this data is then encrypted and used as a key to unlocking whichever physical or virtual door that the biometric system protects.
- The living proof. No, there is nothing to the stories of fingerprints being used without their owner’s knowledge or permission. Biometric solutions can use specific variables to determine if the finger used to access the system is that of a present, living person. A copy or a fake cannot be used to access a cutting-edge biometric solution.
- Easy and convenient. Queues and documents and paperwork may well be a thing of the past should biometrics take a firmer grip of government and banking systems. The process of registering is easy, and access to identity documents and records is yours alone.
- Security blanket. A thousand passwords and a hundred post-it notes stuck on walls and drawers. An excel file with a list of sites and applications and their corresponding passwords, all a thing of the past. Nobody needs to remember their password with biometrics, they only need to show up.
- Anywhere is cool. Schools, airports, networks, offices, homes, toilets, banks, libraries, governments, border controls, immigration services, call centres, hospitals and even clubs and pubs – knowing “who” matters and biometrics can quickly and conveniently confirm your identity where needed.