Paygilant Tackles The Issue Of Sluggish Mobile Payments Adoption

While we’ve seen mobile payments and e-wallets do reasonably well in the United States—in some places much more so than others—contactless payments haven’t exactly caught on like a house afire. In fact, they’ve barely caught on like a candle in the window. That’s a point Paygilant recently wondered about, and its own Yossi Geller, vice-president of marketing, recently dropped some word our way about just why that might be.

It’s not that contactless hasn’t been popular anywhere, Paygilant asserts. The UK loves it, with 54 percent of those studied in a recent survey having put contactless to use in the last month. By comparison, in that same month, just three percent of Americans could say likewise. Canada, meanwhile, seems to be following its elder brother into the fray; 58 percent of Canadian consumers had tried contactless in 2017, and 19 percent regularly use it. That’s better than six times the number that even used it last month in the US.

One of the biggest reasons for the US’ lag, Paygilant suggests, is that the American market just hasn’t seen the benefits of contactless, or mobile payments, yet. Without a strong, clear value proposition, there’s just not much reason to make the switch from cash, card, or anything else being used. An overall conservative spirit of technological adoption—especially when it comes to financial technology—is also cited by some.

Potential mobile payments users in America have long had a major problem with security, and that’s kept a lot of users out of the fold. While this has been a great step forward, it immediately segued into a new problem, the sheer “why” of mobile payments. We’ve already seen this happen, and we’ve even seen some companies beat this problem outright thanks to the addition of rewards programs to a mobile payments system. Starbucks especially put such a system to good use, and has seen it succeed so thoroughly that it actually hurt business for a while by causing bottlenecks at the counter.

We can never ignore mobile payments security. We must, however, also emphasize the value of mobile payments if we expect customers to pick it up. Some have already seen the value. For those who haven’t, addressing this will be vital to building adoption rates.

Paygilant Tackles the Issue of Sluggish Mobile Payments Adoption

Device Attributes

Various attributes observed on the device can contribute to the detection of fraudulent behavior and to the derivation of a device ID. Device model, screen, memory, UUID, OS, IP, geolocation, app permissions, and more are observed. Geolocation is probably the best example for a device attribute used for detecting fraud - if a transaction is attempted from Moscow a short while after the preceding transaction was carried out in New York, then that is a strong indicator of fraud. Restricted app permissions is another indicator that the user might be hiding something. Another example is app permissions that are restricted by the user – that, in combination with other things, night suggest that the user might be hiding something.

Transaction Data

Paygilant employs propriety transaction behavioral maps. The Behavioral Maps represent the purchasing patterns/behavior of a specific customer and her nearest neighbors and are created using Paygilant's proprietary machine learning algorithms. The behavioral maps typically comprise a large amount of information but must be compact 9 enough since they are securely transmitted to the mobile device. To achieve this Paygilant utilizes its depth of field (DOF) approach from digital photography to compress the information so that complex calculations that do not require work intensive CPU and memory. A Behavioral Map shows a clear, high resolution picture of the different risk zones and is a key factor in determining the risk of a specific transaction and has the following key characteristics: - User specific: each map is unique, calculated and maintained on a per user basis, therefore representing a transaction risk level for each customer’s transaction. - Lightweight: Resolution variations enable maintaining only the necessary data, reducing the map's weight to a bare minimum. - Dynamic: As the purchase behavior changes, the map will be modified.

Device DNA

Bio Markers

Paygilant observes bio markers to passively identify the user behind the transaction. Common bio markers Paygilant observes include touch time, time between touches, size of touch inputs, finger velocity, scrolling pace and drag length, typing biometrics, and more. Paygilant’s robust bio markers are just one of the several intelligence sets that make up the broader solution and is designed to augment the fraud/no-fraud decision that precedes any step-up authentication request.

App Interactions

Paygilant looks at how the user interacts with the mobile application to determine if the interactions are consistent with a legitimate user. For example, if a user navigates directly to a high-ticket item and immediately proceeds to check-out, then that suggests something fraudulent might be happening. If a user inputs his name and address on the payment form in a manner that is not consistent with how normal users would do it (i.e. slower than expected because typing-in unfamiliar strings), then that provides another clue that something fraudulent might be happening.

User Data

Intelligent, privacy preserving analysis of user data on the mobile device provides valuable insights into fraudulent activities. User data analysis is especially helpful in hard-to-analyze scenarios like new account origination, where there is no established history for the user/account. Some examples for how device data can be used include comparing user accounts on the device with the payment cardholder identity, or the identity disclosed on a new account registration form – a mismatch provides a strong indicator for fraud. No media on the device, empty contacts list, and sparse call logs are also examples of fraud indicators that can be collected from user data on the device.

[contact-form-7 id="1746" title="Contact+PDF_new"]

[contact-form-7 id="1390" title="Contact+PDF_copy"]

[contact-form-7 id="1397" title="Contact_copy"]

Paygilant in Payment Week

Paygilant Tackles The Issue Of Sluggish Mobile Payments Adoption

Recent Posts

2022 and Digital Banking

6 Ways COVID19 Has Impacted Payments

Reducing Friction Without Compromising Security, is This Possible?

Can Mobile Banking Finally Serve the Underbanked?

Sign-Up Bonus Abuse