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Encap´s presentation at UK Payments Council´s yearly event called "Driving Change in Payments Conference 2012"
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Simple,Secure,Seamless:Payments in the post-PC era
Thomas Bostrøm JørgensenCEO, ENCAP
Secure,Simple,Seamless:Payments in the post-PC era
Thomas Bostrøm JørgensenCEO, ENCAP
Joined Encap as CEO in 2011 Previously CEO at Luup,
global leader in mobile payments
Executed global strategic partnerships with Deutsche Bank for rolling out mobile money
VP R&D at Force Group Co-founder at Voycast AS
Intro
The payment ecosystem
Messaging
Payment facilitation
Funds movement
SECURITY (authentication and anti-fraud)
• FORCES: What are the market forces at play in the post-PC era?
• POTENTIAL: What is the potential of post-PC era financial services?
• CHALLENGES: What key challenges does the market need to overcome?• Adoption -> compelling & convenient user
experience is required to drive uptake• Security -> security cannot be compromised - high
security, banking-grade two-factor authentication is essential
• QUESTION: How do we ensure a strong user experience without compromising security?
Agenda
FORCES
In the news 2000: Egg suffers security breach, defrauded of
thousands 2005: Phishers target Nordea´s OTP system 2006: Bank of America debit cards compromised,
200,000 customers affected 2007: ZeuS trojan attacks bank´s 2FA – Malware for
mobile
The post-PC era
App store revolution
Consumers demand convenience from financial
services via apps
Cloud opportunity
Financial services can are increasingly adopting cloud-based solutions
Smart opportunity
Consumers want to use smart devices more than PCs for financial services
Growing mobile security threat
Threats to mobile devices will continue to grow
Key industry trends impact
payments security
Trust is even more imperative as market forces are rapidly changing the payments landscape
The post-PC era
Source: Economist, 08.10.2011http://www.economist.com/node/21531109
Smartphone penetration
Source: Economist, 08.10.2011http://www.economist.com/node/21531109
Mobile broadband penetration
Source: Economist, 08.10.2011http://www.economist.com/node/21531109
Apps market
Source: Economist, 08.10.2011http://www.economist.com/node/21530920
The move to the cloud
POTENTIAL
Advanced Payments
Source: Edgar Dunn & Company, Advanced Payment Report 2011
• Online payments currently dominate the advanced payments market.
• This trend is expected to continue but contactless card and mobile payments will become significant by 2016.
• The market size for online payments is expected to be $2,068 billion representing two thirds of the advanced payments market by 2016.
Big players are lining up
Paypal does $7bn in mobile transaction volume
Square does $5bn in commerce transaction volume
Google > $5bn in mobile revenues
16
Security fears
29% said that despite shopping online, they did fear their financial security may be breached *
Only 16% believed online financial transactions are always secure *
700% growth in the last two years in mobile security threats
*Source: Avira
New Account fraud
‐ Costs the industry $579 per case‐ Costs $18bn in total
Existing account fraud
‐ Costs the industry $526 per case‐ Costs $31bn in total
Cost of Identity Fraud: US
Source: Javelin Strategy & Research
CHALLENGES
SecureSimpleSeamless
Adoption of post-PC world financial services require them to be:
Secure
$No security Usable security
2FA
$Un-usable security
UN: *****PW: ******0
Cost
Risk
Usability is the ease of use and learnability of a human-made object*
The payment solution has to be designed for:
Efficient use Easy learning User satisfaction
Simple = Usable
* Wikipedia
Small screen real estate Users´ low attention span Awkward input Complex user experience design PC-era authentication solutions
Unique usability issues in post-PC era (mobile) financial services
PC-era authentication solutions
Consumers and service providers want a seamless payment experience across all channels
Seamless
QUESTION
How do we ensure a strong user experience without compromising security?
PC-era payments solutions
Post-PC era payment solutions
Secure– 2-factor authentication – Lower cost then PC-era authentication
Simple– Designed for ease of use– No new hardware required: use customers existing hardware
Seamless– Fully Integrated with the customer´s devices– Work across any channel
…Without costing too much!
Post-PC era payments solutions
Post-PC era authentication – TCO comparison
Post-PC HW OTP Smart token
OTP soft token
SMS OTP
Thanks for listening…
…any questions?
