The he F Fut uture o of Payments Doug King and David Lott, - - PowerPoint PPT Presentation

The he F Fut uture o

• f Payments

ECONv Nversa satio ions

For the latest news: frbatlanta.org/subscribe

Doug King and David Lott, Payments Risk Experts

February 16, 2017

Trends in noncash payments 2000-2015, by number Billions

SOURCE: 2016 Federal Reserve Payments Study

Checks ACH Credit cards Non-prepaid debit cards Prepaid cards 10 20 30 40 50 60 70 2000 2003 2006 2009 2012 2015

Number of payments (billions)

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

E-commerce Sales ($Mn)

SOURCE: U.S. Census Bureau

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

M-Commerce as a % of E-Commerce

SOURCE: comScore m-Commerce Measurement

3.0% 7.0% 5.0% 16.0% 18.0% 20.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016

Starbucks Mobile Payments as a % of Total Payments

Mobile Order Mobile Pay

16.0% 21.0% 27.0% 5.0% Figures not reported by Starbucks

SOURCE: Starbucks quarterly reports

Mobile Apps

Customer

Authentication

NFC, HCE & Secure Element Wireless Network

End User

Payment Transaction

Account Wallet Mobile Device Cloud

New opportunities versus device security elements and payment tokenization

Mobile Security Points of Attack

VULNERABILITIES:

Internet of Things

• Greater convenience but greater risk?

The he F Fut uture o

• f Payments

ECONv Nversa satio ions

For information on payments visit: frbatlanta.org/rprf

For the latest news: frbatlanta.org/subscribe

Doug King and David Lott, Payments Risk Experts

February 16, 2017