Increasing Loyalty And Revenue: 3 Approaches To Mobile Payments For Banks

By Ian Hermon, Payments Security Specialist, Thales e-Security

As mobile devices become ubiquitous, banks are particularly well positioned within the payments industry to leverage mobile technology to transform customer interactions. By offering mobile services that their customers can access on the go, banks have a significant opportunity to create greater customer convenience, which increases loyalty and retention. Mobile payments are a huge part of that convenience factor.

There are three main mobile payments approaches that work best for banks, and they all share the common denominator of lying outside the direct control of banks.

However, to secure these payments, banks use a proven trust model that minimizes the risk of fraudulent transactions while protecting all critical keys and payment credentials in the back-end infrastructure that supports these approaches.

A significant piece of this infrastructure is hardware security modules (HSMs). They overcome the security vulnerabilities and performance challenges typically associated with software-only cryptography. The following sections describe each of the approaches, demonstrating how banks can leverage their existing HSM infrastructure to deliver secure offerings for each while managing risk, helping to reduce fraud and, most significantly, overcoming any inherent weakness of standard mobile devices.

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