Yesterday, Bluefin’s Chief Innovation Officer, Ruston Miles, spoke at the Smart Card Alliance 2015 Payments Summit, on the 4 Essentials of mPOS. On Monday the 9th, we will host a webinar with PYMNTS.com, “Is P2PE the Next Step in mPOS Security?” In December, Bluefin introduced the first U.S. PCI-validated P2PE solution for mobile payments. Register for our webinar on Monday and in the meantime, check out our view on the 4 Essentials of Today’s mPOS.
mPOS isn’t just for startups anymore. According to ABI Research, the installed base of global mPOS devices is set to increase fivefold over a five-year forecast period, reaching the 51 million mark in 2019, or 46% of the overall POS market.
But has mPOS security kept up with implementation? Rapid growth with unprotected data provides unlimited opportunities for malware to infiltrate phones, enable data breaches and lead to significant business interruption. Merchants understand that while there is a huge potential for growth in mobile commerce, there are also unknown risks associated with mPOS.
Bluefin sees 4 essentials of today’s mPOS, with security at the forefront of the discussion – including PCI-validated Point-to-Point Encryption (P2PE) for mobile payments.
Essential #1: Secure. The security of mobile phones continues to evolve and merchants do not have the ability to modify mobile device configurations to provide additional levels of security. In addition, the open architecture of many mPOS solutions can leave them susceptible to fraud and malware, and mobile payment information could be compromised.
In December, Bluefin became the first U.S. company to receive PCI validation for point-to-point encryption (P2PE) in mobile payments. P2PE prevents clear-text cardholder data from being available in the device or the merchant’s system where it could be exposed to malware. Our mobile P2PE Solution interfaces our QuickSwipe Mobile Point of Sale (mPOS) system, utilizing Infinite Peripherals’ PCI P2PE approved Prima M mobile swipe device (it is also available for integration via our SDK). By encrypting card data within the Prima M, the risk of data compromise via the mobile device is greatly reduced as clear-text cardholder data will not reside on the device itself.
Essential #2, Seamless. Omnichannel is the new buzzword – consumers want the same shopping experience across channels and devices. The essential mPOS unifies brick-and-mortar retail payments and online payments. Whenever possible, payment methods should be interchangeable. For example, many mPOS payment gateways can accept and manage payments via gift card, cash and check, just like the typical retail POS. The trend is to go with mPOS providers that provide SDK integration into all three channels
Essential #3, Scalable. A scalable mPOS solution enables the integration of new capabilities within the existing mPOS platform. A single restaurant, for example, might want to support online ordering, catering and table service, not just payment at the table. And, that single restaurant hopes to turn into multiple locations and be able to have a seamless look at their customers and inventory. The core mPOS solution must be scalable to add these capabilities.
Essential #4, Revenue-Generating. Payment acceptance is still the baseline requirement for mobile but today’s essential mPOS offers revenue-enhancing capabilities. The ideal system enables promotions, offers and loyalty schemes to customers; triggers dynamic pricing based on inventory availability and customer demand; or tailors the shopping experience to increase average basket size and/or increase frequency of purchase. All of these facets can lead to additional revenue from otherwise normal operations.
We’ll discuss this and much more on Monday’s webinar, hope you will join us!