Snippet: Mobile commerce transactions and other app-based payments must be secured if consumer adoption is to continue at the impressive pace we have seen. Attacks on customer accounts by fraudsters are becoming increasingly sophisticated, which raises concerns among consumers about the safety of mobile transactions.

Mobile commerce transactions and other app-based payments must be secured if consumer adoption is to continue at the impressive pace we have seen. Attacks on customer accounts by fraudsters are becoming increasingly sophisticated, which raises concerns among consumers about the safety of mobile transactions. Besides the impact on individual victims, this kind of fraud threatens to limit mobile innovation. How can financial institutions and customers protect themselves without compromising on convenience?

Still, no-one wants to be left out of this technological revolution, as friends and family share with each other just how easy it can be to bank and shop on their smartphones or tablets. Industry experts like eBay and Gartner predict that this year 30% of all e-commerce will take place on smartphones and tablets. In 2007, when the iPhone made its debut, this number was less than 1%.

One driver of this change is the availability of Wi-Fi in densely populated areas. A country that shows the way in this aspect is South-Korea. The capital, Seoul, not only has free Wi-Fi covering the whole city but the country also boasts the fastest average Internet connection speed in the world – ahead of second-placed Japan by a fair distance. (In Europe, Switzerland, Sweden, the Netherlands, Ireland, and the Baltic States are usually listed as national front runners, while Paris, Bucharest, Riga, and Zurich do well as cities.) The Korean government continues to invest heavily in mobile infrastructure and expects mobile data connectivity will be a thousand times faster in 2020.

With infrastructure like this, South Korean app developers don’t have to worry about bandwidth issues. They can offer a wealth of information and range of widgets in a single app. End-users therefore don’t have to switch to other apps when they are in a specific environment. They can play a game on the commute home and simultaneously, in the same app, order dinner, pay for it, and have it delivered to their home. One app may perform many different functions, which is quite a different way of doing things than we are used to in Europe and the USA.

As businesses explore the opportunities of mobile commerce, they want to make app-based payments as simple as possible. But hackers are equally as excited about the opportunities mobile unlocks. In Europe, governments want to implement financial regulations that give their citizens guarantees on the security of digital payments. The mobile environment, from technology to regulation, is changing fast!

Entersekt is a global leader in mobile-based strong authentication of digital transactions. By providing the Transakt security app to mobile users or by offering a software development kit to integrate strong authentication into an existing app, Entersekt enables enterprises to provide secure online payments.

For those who want to know more, our complimentary white paper, Muscling up on strong authentication: Best practices provides insight on the most important elements of an effective user and transaction authentication system.

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Claudius van der Meulen

SVP EUROPE

Claudius manages Entersekt’s European business from our offices in the Netherlands. He’s a seasoned salesperson with two decades’ experience working in information technology at companies like Sun Microsystems and ACI Worldwide, and has been fundamental to our success in the region.

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Entersekt is an innovator of customer-centric fintech solutions. Financial services providers and other enterprises rely on our patented mobile identity system to provide both security and the best in convenient new digital experiences to their customers, irrespective of the service channel. With us, they can concentrate on their innovation roadmap, while delivering intuitive, low-friction digital experiences to their customers.