Acquiring Bank

The acquiring bank works for the merchant, often processing transactions and providing a merchant account. Upon a purchase, the acquiring bank takes a cut, and then pays an interchange fee to the issuing bank.


There are different types of payment authentication dealing with the card, the customer, and the device. For purposes of this paper, authentication refers to the customer, and is defined as the process used to verify the identity of the party enrolling in a wallet or initiating a payment transaction, using different types of credentials to prove the person is who he claims to be. Authentication methods include:

• Something you are (signature, voice, other biometrics)

• Something you know (password, challenge question/answer)

• Something you have (payment card, mobile phone)


Behavioral Biometrics

A measurable behavioral trait that is acquired over time and is used to recognize or verify the identity of a person. It is mainly based on pattern recognition techniques to uniquely identify a user.

Big Data

Big Data refers to the measuring and tracking of metrics in an automated high-volume way. A simple example is website analytics – things like visitor arrival time, duration of stay and IP location, all processed into a single-source database for reporting across the platform. Big Data like this works across the customer/product/service life cycle to gather metrics on nearly every variable.


Contactless Payments

Contactless is a fast, easy and secure way to pay, for purchases costing $ 30 and under (various according to country) Contactless payments are becoming increasingly common on a range of devices including:

  • Pre-paid, debit, charge and credit cards
  • Stickers
  • Key fobs
  • Wearable devices, such as watches and wristbands
  • Mobile devices, such as smartphones and tablets


Card Emulation

Card emulation mode enables NFC-enabled devices to act like smart cards, allowing users to perform transactions such as purchases, ticketing, and transit access control with just a touch.

In Card Emulation mode, the NFC-enabled device communicates with an external reader much like a traditional contactless smart card. This enables contactless payments and ticketing by NFC-enabled devices without changing existing infrastructure.

Adding NFC to a contactless infrastructure enables two-way communications. For the air transport industry, this could mean updating seat information while boarding, or adding frequent flyer points when making a payment.


Card on File

CoF is a Payment credentials provided by the cardholder to a merchant with the authorization to use the stored “card on file” credentials for future payments (for individual or recurring payments).


Digital Wallet

A digital wallet is an electronic device or online service that allows an individual to make electronic transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store.

An individual’s bank account can also be linked to the digital wallet. They might also have their driver’s license, health card, loyalty card(s) and other ID documents stored on the phone. The credentials can be passed to a merchant’s terminal wirelessly via near field communication (NFC).

Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the holder’s credentials.


Digital Banks

Digital banks are banks that offer all traditional services, but they do it online.


Mobile Banking Application

is a service provided a bank that allows its customers to conduct financial transactions remotely using a mobile device


Machine Learning

Machine learning presents a system to sort data into patterns and models across various algorithms. As data is processed, traits and elements are identified which then fine-tune algorithms for further detail. Thus, machine learning continuously learns without being explicitly programmed and identifies patterns to predict outcomes.



Near-field communication (NFC) is a set of communication protocols that enable two electronic devices, one of which is usually a mobile device to establish communication by bringing them within 4 cm (1.6 in) of each other.  NFC uses a chip in the mobile device to wirelessly communicate with the merchant’s payment terminal. The devices communicate using special short-term codes to verify customers’ identities and don’t reveal actual credit card numbers.


Online Banking

Online banking provides consumers the ability to manage their finances online using a mobile device or computer. There’s no need to visit a bank branch, and you can do what you need to do when it’s most convenient for you. Online banking  can be easier to use and often  have higher interest rates, they’re free or inexpensive, and they’re better for tracking spending.


Open Banking

Open banking is a concept in financial services based on several principles: the use of open APIs allowing third party developers to build applications and services around financial institutions, increased financial transparency options for account holders, and the use of open source technology to achieve these principles.



Payment Service Provider principally provides merchants the capability to accept electronic payments for online services on a payment gateway connected to acquiring banks, card and payment networks through a variety of payment methods including credit and debit card, direct debit and bank transfer.

Payment Gateway

The payment gateway (or PoS terminal) is software or hardware that transfers the customer’s payment information from the merchant to the acquiring bank (and other processors). PayPal is an example of an online payment gateway, while Square is a provider of point-of-sale terminals for brick-and-mortar retailers. The line between the two is blurring; PayPal just purchased iZettle (for $2.2B) to compete more directly with Square for brick-and-mortar market share.


The revised Payment Services Directive (PSD2) aims to better align payment regulation with the current state of the market and technology, and introduces security requirements for the initiation and processing of electronic payments, as well as for the protection of consumers’ financial data. 

It also recognizes and regulates Third-Party Providers (TPPs) that are allowed to access or aggregate accounts and initiate payment services .This will shake up the payments market, particularly in the ecommerce space, by encouraging greater competition, transparency and innovation in payment services. 


Sim Swap

Scammers first obtain the victim’s internet banking details through phishing emails.

  • This personal information is used to pose as the victim in requesting a sim swap from the mobile network provider.
  • As they have access to all this information – including the calls and texts intended to go to the victim’s cellphone number – the perps can now access the One Time Pin sent by the bank in order to authorise whatever transaction they intend to make, which is more often than not, cleaning out the bank account.