Mobile Payments – A Fresh Approach

8th June 2016

Proxama and partner organisation Stanchion Payments recently delivered an online webinar covering the options for deploying mobile payments aimed at banks and other card issuers in the Middle East. The webinar is available to view again here.

The webinar covered three aspects of mobile payments – the business perspective as it pertains to the Middle East presented by David Lock, Managing Consultant at Stanchion, the options for deployment centred around Cloud-Based Payments (CBP), which are based on HCE technology, presented by Nigel Beatty, VP Global Business Development at Proxama, and finally the Middle Eastern industry view of the future of mobile payments presented by Neil Pavis, Deputy CEO of Arab Financial Services, the largest credit card issuer and processor in the Gulf region.

The Middle East has a unique demographic in comparison to European countries in that the population is relatively young and there is a large proportion of High Net Worth Individuals. Smartphone ownership is amongst the highest in the world with over 60% of mobile users having a smartphone in Dubai, for example, and increasing. This makes the region ripe for the launch of mobile payments, but there’s little chance of the so-called X-Pays – Apple, Android and Samsung Pay, launching there in the near future.

That means that an independent cloud-based model is the only option now available, with SIM-based Secure Element solutions having fallen from favour due to technical and commercial complexity. A cloud-based solution has many advantages, particularly where local card brands and networks are in use, since the international card schemes currently monopolise access to the X-Pays through their network-based tokenisation and provisioning services; the downside of using those services is that all transaction traffic must flow through and be authenticated within those networks, attracting fees in the process. The webinar goes into some depth on the advantages of CBP and on models for deployment, which should not involve major changes to existing card issuing and processing systems.

Check out the webinar which is available to view here, it really cuts through some of the mystery surrounding mobile payments and presents a fresh approach based on an independently-deployable solution.