Don't believe the click-bait!

Blog Post created by on May 13, 2016

My reaction to the following article on QZ...


Online fraud is rising, thanks to those fancy chip cards — Quartz


Gotta love and their rabble rousing click bait article short on data and heavy on hype and innuendo!  I've helped run web sites where we optimize for clicks, so I can certainly understand their motivation…


What they don’t discuss is that the root of fraudulent activity starts with a data breach whereby payment data is compromised, and then because of liability shift and EMV card acceptance, this compromised data can no longer be used fraudulently in-store.  So, it’s not net-new fraud, it’s the same fraud in just a different place. Reading this article, one would think that some how, EMV chip cards are causing more fraud!


What they suggest at the end is a nice insight that I’ve not thought through much before.  Yes, this seems to be the next logical step for network tokenization, of which, Apple Pay and Android Pay are just specific implementations of.  One may look at this as yet another browser war, this time a digital wallet war.  Android Pay already supports mobile web and online use cases.  Visa checkout is likely looking for how it can support inApp and mobile web use cases.  Same goes for Samsung Pay.


Much like the browser wars, the operating system vendors will have a leg up and I predict will ultimately win, because whether you are purchasing something online, mobile web, in store, or wherever, if you get a notification on your phone and authenticate with a thumbprint to transmit a token for payment, this seems to be the simplest use case with the highest likelihood of consumer adoption.