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August 02, 2013

Exploring the Concept of Fractional Identity

GP Logo Horizontal 140pxGlenbrook's George Peabody has co-authored an article on the concept of fractional identity that appeared in the Summer 2013 issue of re:ID magazine.

George and co-author Stephen Wilson of Lockstep Consulting propose fractional identity as a lighter weight alternative to the National Strategy for Trusted Identity in Cyberspace (NSTIC).

Supporting the growing demands for stronger authentication and flexible, context-specific exchange of identity attributes, fractional identity takes advantage of existing contractual relationships instead of requiring the shift of liability to a wholly novel intermediary service provider model.

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!

August 01, 2013

PULSE to Deploy Paydiant's Cloud-based Mobile Payment Solution

Paydiant logo 140pxPulse logo 140pxPULSE and Paydiant have announced they are working together to "provide an easy-to-use mobile commerce solution for PULSE participants. The Paydiant solution will enable PULSE financial institution and merchant partners to quickly deploy contactless payment and cash access functionality to better serve their mobile-minded customers." Paydiant’s mobile wallet platform is software-based and works with both new and existing smartphones – including iPhone® and Android™ devices already in the hands of millions of consumers. It also works with existing point-of-sale (POS) terminals used by participating merchants today without requiring new hardware.

“Paydiant’s platform enables us to offer both our financial institution participants and merchant partners their own branded mobile wallet,” said Judith McGuire, PULSE executive vice president of Product Management. “Paydiant’s unique approach is an important part of PULSE’s overall mobile services strategy.”

“As a leading provider of authenticated debit transaction services, PULSE is positioned to connect all the key constituents in mobile payments,” said Kevin Laracey, co-founder of Paydiant. “They have an outstanding reputation as a trusted and reliable partner to both financial institutions and retailers for delivering secure payment services. This, in combination with PULSE’s open approach to mobile payments, will certainly help advance mobile wallet adoption.”

The Paydiant solution delivers two key capabilities that are expected to help accelerate the use and adoption of mobile wallets, improve payment efficiencies and enhance the transaction experience for consumers in any retail POS or ATM environment where Paydiant enabled wallets are accepted:
  • A software-only merchant acceptance interface that can be quickly deployed on any POS or payment terminal. Once enabled, this open acceptance method can support any compatible Paydiant-powered mobile wallet – whether deployed by a financial institution, retailer or third-party service provider.
  • And, as now offered to PULSE participants, a white label mobile wallet application that is branded and configured by the wallet issuer, rather than a third party. Financial institutions and merchants will be able to determine the variety of payment instruments supported in their wallet, enable customers to redeem offers at a retail POS and use their mobile wallet to make payments at a retailer, or withdraw cash from a participating ATM.

The Paydiant mobile wallet application is enabled through a secure cloud-based system that does not store any sensitive account information on the mobile device or pass account data through the retail environment. Every transaction uses two-factor authentication and tokenization.

Headline News from - August 1, 2013

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!

July 31, 2013

US Merchants Win Victory in Debit Card Interchange Litigation

FedEarlier today, U.S. District Judge Richard Leon ruled on litigation brought in November 2011 by a group of merchants against the Board of Governors of the Federal Reserve System ("NACS v. Board of Governors of the Federal Reserve System") that sought to overturn the Board's Final Rule setting standards for debit card interchange fees and network exclusivity provisions (so-call Regulation II).

Ruling on summary judgment in favor of the merchant plantiffs, Leon concluded that "the Board has clearly disregarded Congress's statutory intent by inappropriately inflicting all debit card transaction fees by billions of dollars and failing to provide merchants with multiple unaffiliated networks for each debit card transaction."

In his decision, he goes on: "It appears that the Board completely misunderstood the Durbin Amendment's statutory directive and interpreted the law in ways that were clearly foreclosed by Congress."

Judge Leon is inviting the parties to provide supplemental briefings on the issues of how to adjust the rules - and staying any change for the moment - but noting that he is inclined toward a stay of vacatur "for months, not years."

Isis Announces National Rollout of NFC-based Mobile Payments

Isis logo 140x60pxIsis, the mobile commerce joint venture created by AT&T Mobility, T-Mobile US Inc. and Verizon Wireless, has announced plans to roll out the Isis Mobile Wallet nationwide later this year, following what it described as successful pilots in Austin, Texas and Salt Lake City, Utah. The Isis Mobile Wallet uses near field communication (NFC) technology to allow consumers to pay, redeem coupons and present loyalty cards with a tap of their smartphone. To use the Isis Mobile Wallet, consumers need an NFC-enabled smartphone and a SIM-based secure element, which together make a handset "Isis Ready".

“Over the past nine months, we have proven the power of an open platform, creating an ecosystem of literally hundreds of partners dedicated to making mobile commerce a reality,” said Michael Abbott, chief executive officer, Isis. “As part of our commitment to consumers, we are incorporating feedback from our pilots into the next generation of the Isis Mobile Wallet as we prepare for national availability later this year.”

Isis says that some 20 million smartphones already in use currently feature NFC technology and that millions more are being shipped each month by its mobile carrier partners – AT&T Mobility, T-Mobile US Inc. and Verizon Wireless.

“NFC technology is important to Samsung and is a standard feature in our flagship smartphones, including our Galaxy S® 4, as a powerful way for sharing through S Beam, and a tool for secure mobile payments with Isis,” said Kevin Packingham, chief product officer, Samsung Telecommunications America. “At Samsung, we are committed to providing our customers with the most innovative technologies available and the Isis Mobile Wallet is just one example of that commitment brought to life.”

Key findings from the pilot include:

  • On average, active Isis Mobile Wallet users tap more than 10 times per month
  • Two-thirds of active users opted in to receive offers and messages from their favorite brands, following an average of seven brands
  • Contactless acceptance nearly quadrupled to more than 4,000 locations in Austin and Salt Lake City
  • More than 80 percent of transactions take place at everyday spend locations such as quick-service restaurants, coffee shops, gas stations, convenience and grocery stores
  • Wallet users engaged in loyalty and offers tap up to two times more frequently than users who only make payments

Isis says it will be incorporating key learnings from the pilot of the Isis Mobile Wallet in Austin and Salt Lake City into its national rollout later this year.

Headline News from - July 31, 2013

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!

July 30, 2013

Visa and MasterCard Support Common Solutions to Enable U.S. EMV Chip Debit Routing

Visa logo 60pxhMasterCard logo 140pxIn a press release this morning, Visa Inc. and MasterCard announced "an agreement to license their respective common U.S. debit solutions to each other to meet the industry need for a streamlined approach to route U.S. chip debit transactions over multiple, unaffiliated networks."

"This represents our continued commitment to advance the adoption of the most advanced payment solutions and security standards in order to deliver maximum value to merchants, consumers and issuers," said Chris McWilton, president, North America, MasterCard. "By providing every U.S. debit network with an efficient, market-ready answer, we are delivering a proven solution that not only preserves merchant routing choice, but ensures seamless interoperability with all other EMV programs across the globe."

"This approach offers issuers, acquirers and merchants a streamlined solution for debit chip card routing, helps ensure a cost-effective migration, and enables even broader adoption of secure, convenient chip debit programs in the United States," said Elizabeth Buse, Global Executive, Solutions, Visa Inc. "Importantly, this solution allows merchants and acquirers to deploy payment terminals using existing chip technologies that are already widely integrated into existing chip card acceptance solutions."

In opening their investments and technologies to the industry, the two card networks say they hope to "further accelerate the U.S. market to a more secure chip-enabled marketplace."

Issuers will be able to load their global brand's application onto their cards - either Visa or MasterCard - and flexibly enable transactions to route over any participating PIN debit network within the US. The networks say that this approach is consistent with the EMV Migration Forum's recommendations resulting from the aligned merchant and issuing communities' needs for a single common debit application identifier (AID) and single application on each card and reduce the complexities of the U.S. EMV implementation.

MasterPass by MasterCard Makes European Debut in the UK

MasterCard logo 140pxMasterCArd has announced that British consumers will be the first in Europe to experience MasterPass by MasterCard.

MasterPass is a digital service that allows consumers to use any payment card or enabled device to discover enhanced and secure shopping experiences with just a click, tap or touch – online, in-store or anywhere. MasterCard says "it moves payments forward by allowing the consumer to safely store all their payment, store card, loyalty, shipping and billing address details in one place and gives consumers the ability to make a payment from wherever they are with whatever device they have."

Marion King, President, UK and Ireland at MasterCard said:

"For retailers, MasterPass provides a faster, easier way to check out their customers, and increase sales without significantly changing the way they currently process payments. MasterPass can help retailers reduce checkout abandonment rates, which affected 37% of all online transactions in the first quarter of 2013, equating to more than £6 billion in much needed revenue per year according to IMRG and Capgemini**. UK consumers spend more than £62 billion a year online."
MasterCard confirmed that MBNA is one of the first issuers on the MasterPass platform in the UK.

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!

July 29, 2013

A Look at Starbucks and Mobile Payments

Starbucks logoLast week, on Starbucks' quarterly earnings call, Chief Digital Officer Adam Brotman commented on the company's digital initiatives. He noted that the Starbucks card represents nearly one-third of Starbucks' in-store transactions and 10% of all transactions in US stores are made with mobile phones.

Brotman concluded:

I truly believe that no other retailer ... that’s as far as long as Starbucks in terms of building an end-to-end digital customer experience across a variety of digital touch points both in store and out of store, across channels and now across geographies.

Headline News from - July 29, 2013

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  • Coming Soon!

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Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it:!


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