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September 28, 2020 • Issue 20:09:02

Manifesting our digital commerce

destiny — Part 2

The world needs PIN
Justin Pike, founder of MYPINPAD, noted that entering
a four-digit personal identification number at the POS
has been a popular authentication method for nearly two
decades. "When first introduced in the UK in 2004, losses
due to the fraudulent use of credit and debit cards fell by 13
percent in the first year," he said. "And the use of cloned or
skimmed cards dropped by 25 percent, and the use of lost
or stolen cards fell by 22 percent."

Pike sees a greater need for PIN implementation during
the global pandemic, with cash usage down and online
transactions rising. "With limited options for shopping and
an increasing need to [minimize] time in public spaces,
people are going online to buy what they need," he said. "But
this in itself brings new challenges; with less experienced
people shopping through digital channels, there has been a
50 percent rise in online fraud since January 2020."
By Dale S. Laszig
Pike also noted that growing demand for touchless and
he payments industry's journey to digital plat- contactless payment methods has prompted regulatory
forms has been marked by a stream of regulatory changes. For example, the European Union issued a
mandates and technical initiatives, each with its Revised Directive on Payment Services (PSD2), raising the
T own sense of urgency. In recent years, we've seen limit on contactless transactions. And SCA guidelines that
massive migrations to secure, compliant, mobile and digital went into effect in September 2019 will require multifactor
platforms. Merchants and service providers continually authentication. Beginning Dec. 31, 2020, the SCA will
update infrastructures to stay ahead of fraud and comply
with EMV, PCI and PSD2 requirements.

This series examines the current race to digital commerce
in response to the global coronavirus pandemic. Part 1 Contributed articles inside by:
focused on early reactions during the onset of COVID-19.
Part 2 probes the changing role of hardware in the Bill Pirtle ...................................................................................................16
payments ecosystem.
Marc Beauchamp ..................................................................................24
The term "hardware" brings to mind countertop terminals
and PIN pads that once defined merchant services. Chad Otar ................................................................................................26
However, today's solutions offer alternatives to hardware- William C. Nichols .................................................................................28
centric POS environments. Modern estate management
systems accommodate digital as well as physical assets, TOC on page 3
and leading original equipment manufacturers boldly
experiment with new approaches to commerce.

Continued on page 22