December 2016 Issue 538 www.cardsinternational.com MAKING WAVES WITH CONTACTLESS • SECURITY: Biometrics • RESEARCH: European Millennials • EVENT: Digital Banking Club • COUNTRY SURVEYS: Luxembourg, Lebanon & Kenya CI 538.indd 1 02/12/2016 13:30:13 Untitled-2 1 14/11/201602/12/2016 10:3913:59 Cards International EDITOR’S LETTER CONTENTS EDITOR’S LETTER 6 SECURITY: BIOMETRICS David Parker from Polymath A post-recession high: US credit Consulting argues that biometrics are not all people wish it to be. Alongside some risks with regards to card accounts hit 342 million personal data, it does not even work all the time ew US credit card mum contactless transaction Coutts, RBS plans a further pilot 7: EVENT DIGITAL BANKING CLUB accounts rose to 84.9 limit from £30 to £50? with retail banking customers in The Digital Banking Club’s latest million in the second Growth in card spending the New Year. debate, at the historic Law Society in London, honed in on the Internet quarter – the most declined slightly in September Simon McNamara, chief of Things and how it could aid N with an annual rate of 4.0% – administrative officer of recent quarter for which fig - financial services. A popular topic, ures are available, up 11% more than twice lower than a NatWest said: “The technology the discussion covered a number of subjects, including payments, from a year earlier according year ago (8.3%). that we’ve been able to deploy wearables and customer needs. to data released by the Ameri- As the UK Cards Association with the help of BioCatch has Patrick Brusnahan reports can Bankers Association. suggests, slower growth in card played a crucial role in strength- 10 RESEARCH: EUROPEAN This growth in new account spending could be linked to a ening our security systems.” MILLENNIALS opening contributed to a post- slight increase in the annual con- Saving the bank material loss- The millennial market is one of recession high of 342 million sumer price inflation rate. es, the system was able to stop the most sought after in the new technologically-savvy era. So how open credit card accounts. On a positive note, the annual fraudulent attempts to transfer can banks attract this bunch? Other positive stats included growth rate of the number of funds, identify remote-access tro- Patrick Brusnahan reports this snippet: the post-recession purchases (11%) continued to jans during an online session, and 11 PRODUCTS: CONTACTLESS high of 84.9 million new accounts outstrip that of spending, high- identify fraud attempts occurring According to Timetric research, the included only 20% of sub-prime lighting a consumer preference across multiple channels. global contactless card transaction accounts, down sharply from to use cards more frequently for Much is made of the need to value will almost quadruple between 2016 and 2020. Several regions have 28% in 2009. lower-value payments. optimise digital onboarding, accepted contactless as a member of The UK has also reported In the UK one of the most and rightly so. the financial family, but will it last? Patrick Brusnahan writes record statistics. Payment card interesting biometrics pilots The news that Fujitsu has spending amounted to £54.7bn is well underway at RBS. Its launched Smart Origination, 16 COUNTRY SURVEY: LUXEMBOURG ($68bn) in September, up by NatWest subsidiary has been customer onboarding technol- 18 COUNTRY SURVEY: LEBANON 0.6% on August. The number trialling Israeli tech startup ogy, enabling financial institu- 18 COUNTRY SURVEY: KENYA of purchases increased to reach BioCatch’s behavioural biomet- tions to collect, process and ver- 20 GUEST COMMENT: CHARGEBACKS911 a record 1.3 billion transactions. rics to authenticate customers’ ify documents in less than five Merchants are concluding final Predictably, September also online activity. minutes, is interesting. preparations to ensure that they make the most of the seasonal witnessed another contactless BioCatch uses a system that Fujitsu’s cooperation with surge. However, online retailers record: spending on contactless recognises users by how they ImageWare Systems, InAuth, must maximise the biggest opportunity of the year and avoid cards increased to £2.4bn (4% of physically use their computer or Intelligent Environments, Mitek the New Year chargeback hangover, the total value) with correspond- tablet, instead of usernames and and Trunomi operates across says Monica Eaton-Cardone ing purchases reaching 275 mil- passwords. multiple channels in an attempt lion (22% of the total volume). It captures more than 500 to increase conversation and That 22% figure for Septem- points of behaviour, including reduce the cost of new customer ber 2016 compares to 8.9% in hand-eye coordination, pressure acquisition, and is among the September 2015, and a mere and various finger movements more interesting news stories of 3.2% in September 2014. to create a unique user profile. the month. How long before the industry Following a successful pilot Douglas Blakey moves to increase the UK maxi- at RBS’s private banking unit [email protected] Editor: Douglas Blakey Sub-editors: Patrick Fogarty, Nick Midgley For more information on Timetric, visit our Tel: +44 (0)20 7406 6523 website at www.timetric.com. Director of Events: Ray Giddings Email: [email protected] As a subscriber, you are automatically Tel: +44 (0)20 3096 2585 entitled to online access to Cards Email: [email protected] Financial News Publishing, 2012 Deputy Editor: Anna Milne International. For more information, please Registered in the UK No 6931627 Tel: +44 (0)20 7406 6701 telephone +44 (0)20 7406 6536 or email Email: [email protected] Head of Subscriptions: Sharon Howley ISSN 0956-5558 [email protected] Tel: +44 (0)20 3096 2636 Unauthorised photocopying is illegal. The Senior Reporter: Patrick Brusnahan Email: [email protected] London Office contents of this publication, either in whole or Tel: +44 (0)20 7406 6526 71-73 Carter Lane part, may not be reproduced, stored in a data Email: [email protected] Sales Executive: Harry Hooker London retrieval system or transmitted by any form or Tel: +44 (0)20 3096 2586 EC4V 5EQ Asia Editorial: Xiou Ann Lim means, electronic, mechanical, photocopying, Email: [email protected] recording or otherwise, without the prior Tel: +65 6383 4688 Asia Office permission of the publishers Email: [email protected] 1 Finlayson Green, #09-01 Customer Services: Singapore 049246 Group Publisher: Ameet Phadnis Tel: +44 (0) 20 3096 2636 Tel: +65 6383 4688 Tel: +44 (0)20 7406 6561 or +44 (0)20 3096 2622 Fax: +65 6383 5433 Email: [email protected] Email: [email protected] Email: [email protected] www.cardsinternational.com December 2016 y 1 CI 538.indd 1 02/12/2016 13:30:26 NEWS: DIGEST Cards International PRODUCTS Alfa-Bank, Perekrestok bank’s website or via the My Perekrestok and MasterCard to launch app. co-branded cards Alfa-Bank executive board member and head of retail Mikhail Povaly commented: Alfa-Bank, MasterCard and Perekrestok, the “Our joint project with the Perekrestok supermarket chain operated by X5 Retail, chain is highly relevant for today’s Russia: have collaborated to launch three new This partnership between a bank and a food co-branded cards in Russia. retailer is unprecedented in the local market. The MasterCard-Perekrestok-Alfa-Bank “I am confident that the MasterCard- portfolio includes a reloadable card, a debit Perekrestok-Alfa-Bank cards will be popular, card and a credit card. as they provide savings and enable families to All cards feature MasterCard’s contactless get some goods at Perekrestok supermarkets technology, and cardholders can earn points for free. on purchases that can be redeemed against Prepaid cards can be recharged on “We have made the cards as user-friendly goods at Perekrestok supermarkets. Perekrestok’s website, the My Perekrestok as possible. With free transfers from cards X5 Retail Group said a prepaid card will mobile app and at the ATMs of Alfa-Bank issued by other banks, a free mobile app, earn two points for every RUB10 ($0.10) and its partners. and an attractive reward points system, we spent at Perekrestok, and one point for every The debit and credit cards can be obtained expect great demand and high levels of cus- RUB10 spent elsewhere. from any Alfa-Bank outlet, through the tomer satisfaction.”< SECURITY Leumi Card taps SecuredTouch's size, touch pressure and touch surface. financial apps, due to the need for complex biometric solution for user By verifying the profile, Leumi Card will passwords. authentication be able to recognise in real time whether the “Integrating the technology in Leumi card owner is the one operating the app. As Card’s mobile app is aligned with regulator Leumi Card, a credit card subsidiary of the well as the initial login stage, the solution’s directives for digital banking communica- Israel-based Bank Leumi, is set to launch a identity verification scrutinises every in-app tions that require two forms of authentica- mobile security product featuring Secured- activity. tion.” Touch’s behavioural biometric technology. Leumi Card executive vice-president for The technology, which has successfully SecuredTouch’s technology will enable development and strategy Ohad Maimon passed a comprehensive experimental and Leumi Card to identify users based on their commented: “This is an international break- testing phase, will be made available to cus- unique personal profiles within their mobile through that enhances user experience while tomers over the next few months, Leumi devices, by checking attributes such as finger solving the problem of poor conversion in Card said.< PAYMENTS Verifone announces European and devices are now available to small- to security, and multidimensional features for launch of Verifone Engage medium-sized businesses across Germany enhanced retail experiences and new levels through network service provider Inter- of personalisation with consumers.