Tag: mobile banking

It may soon be possible for customers of Lloyds Bank to use their contactless card to authorize smartphone transactions.

Customers of Lloyds Bank who have both a contactless debit card and who have an NFC technology enabled device may soon be able to combine the two in order to enhance the mobile security of the banking app so that they can authenticate their identity.

The authentication tech has been nicknamed “tap to bank” and the pilot program involves 125 people.

The participants in the mobile security experiment will replace the current authentication method that uses call to mobile, with a quick tap of the contactless debit card against the smartphone. According to Lloyds Bank, this type of authentication feature could one day be broadened to complete other types of task, as well, such as for the verification of new payments.

It is clear that this new mobile security technology is only at the very beginning of its use by the bank.

According to Marc Lien, the Lloyds Bank director of innovation and digital development, “With the widespread take up of contactless cards and most new smartphones now having NFC technology, this tap to bank trial is developing enhancements to banking processes that many people could benefit from.”

The bank is also currently working to replace the automated authorization phone calls that are currently used for the confirmation of certain transactions completed over desktop, as well. In that case, the user can verify requests by logging into the mobile banking app.

That process will be available to individuals who are setting up repeat orders, who are establishing new beneficiaries, who will be making an international payment, or who will be resetting their passwords by way of Internet Banking over a laptop or desktop computer.

Lloyds has explained that these new methods of authentication by way of mobile security technology makes the process considerably faster and more convenient than the automated phone call. Its current estimates are that the entire process could now be done in under 20 seconds, when compared to the lengthier method using the automated calls. Mobile banking is becoming increasingly important among the bank’s customers and is more than likely a driving factor behind this experiment.

HSBC predicts growth in the mobile payments space for India

As mobile technology continues to expand throughout India, the number of payments being made through mobile applications is increasing. According to HSBC, a leading bank, mobile payments are expected to reach $100 billion within the next 18 months. People are becoming more comfortable with paying for products and sending money to others via apps, and these apps are becoming more plentiful and some are offering consumers robust services. Banks could have much to gain from the continued growth of mobile payments.

Corporate employees are showing favor for mobile banking

HSBC notes that corporations are beginning to see significant promise in mobile payments. High-ranking staff members, such as CEOs and treasurers, are becoming mobile-centric, basing much of their lives on their smartphones and tablets. As such, they are abandoning old methods of managing money and issuing payments, such as writing checks. Instead, these people are becoming more likely to make a mobile payment as it represents an easier and more convenient form of commerce.

Mobile services are becoming a significant focus for banks

Mobile banking is gaining favor among many people. Banks are releasing mobile applications that allow customers to access their services and these apps have managed to win praise. As banks continue to see growth in the mobile commerce sector, these organizations are expected to invest more into mobile services and applications. This will allow banks to better engage a new generation of consumer that has become heavily involved in mobile technology.

Smartphone penetration is leading to a rise in mobile commerce

India is one of the world’s leading mobile payments markets. This is largely due to accelerated smartphone penetration. As more people obtain smartphones, they are becoming exposed to the concept of mobile commerce and the convenience of this concept has proven quite attractive to millions of people around the world. Competition is fierce in the mobile payments sector, which has lead to a wide variety of mobile apps being made available, giving consumers  many choices when it comes to determining which app they want to use.