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Corona crisis contributes to a major leap in the electronic payments sector

Corona crisis contributes to a major leap in the electronic payments sector
Corona crisis contributes to a major leap in the electronic payments sector

The Corona crisis contributed to a major leap in the electronic payments sector, and smartphones occupied great importance in light of the increasing trendRecent data indicates that people have increased their reliance on electronic payments and contactless payments, as they have abandoned cash transactions in light of the outbreak of the Corona virus crisis.

Kevin Hackl, a banking and financial expert at the German Association for Communications and Information Technology Bitkom, explained, “The Corona pandemic has helped to dominate the trend towards cashless payments and contactless payments, in addition to increasing the demand for payments via smartphone.

“If the user wishes to use his smartphone as an electronic wallet, one must use an application, and despite the variety of options in front of the user, it is somewhat confusing, and there are some banks that provide their own electronic payment systemsIn addition to the fact that many giant technology companies provide their own applications such as Apple Pay and Google Pay, and companies producing smartphones such as Samsung and Huawei, in addition to the fact that some major stores provide their own applications that provide customers with the ability to pay by smartphoneAnd all of these systems share that the user does not bear any additional costs, and customers usually store debit or credit card data in the electronic payment application, and in the absence of such cards, the user needs a company that accepts the PayPal serviceFor his part, Markus Muntz, digital payments expert at the German specialized magazine “c’t”, said: “NFC technology is the most common and widespread in European countries.

“Muntz explained that it is a wireless chip in the smartphone that sends data to a device in the store during the payment process, and the presence of this wireless chip is not limited to smartphones only, but it is found in Giro cards or credit cards, which allow the user to make contactless payments, and the For the user to know whether the store supports the use of this technology through signs bearing the radio wave iconSome applications rely on QR codes or barcodes instead of NFC technologyMarcus Muntz explained: “When making payments, the application generates a code on the smartphone, which is then scanned by the reader in the safe.

”Most people, who have not used a smartphone in electronic payments before, have expressed some security concerns, but German expert Kevin Hackl confirmed that electronic payments by smartphone have become more secure than traditional cards; Because card numbers are not stored on the deviceAnd if the smartphone is unlocked by the fingerprint or the facial recognition function, the stored card is clearly allocated to this user, and the German expert added, “With NFC systems, the chip does not transfer the stored card data, but instead transmits the transaction code or What is known as a token, which can only be used with this process of purchase.

In addition, QR codes or barcodes can only be used once, and strangers cannot extrapolate the NFC chip in a smartphone; Because when the screen is off, the slide is also closed most of the timeIt is also important that the seller only knows the transaction number of the payment process, however, how other data is handled is related to the company providing the electronic payments application, and Kevin Hackle added: “For electronic payments solutions for large supermarket chains, customers give information about their behavior Purchasing for the company presenting the application in exchange for discounts or benefiting from promotional offers.

This was confirmed by a study conducted by the Goods and Products Testing Authority in the German capital, Berlin, and examined electronic payments applications via smartphone during 2019, and it became clear that these applications collect customer cards and reward programs and know customer behavior in terms of items, purchased, places of purchase and timing of shopping operationsOn the other hand, Apple does not collect such information, and Marcus Muntz added, “The company contributes to the fees, which the merchant pays to companies providing electronic payment services, such as Samsung Pay, where such companies do not need data for their business model, on the The opposite of Google, which collects some of this information, such as the location of the user.

The choice of the company providing electronic payments services is related to the type of device; Where international companies pre-install the electronic payment application on their smartphones, and owners of Apple iPhone phones do not have much opportunity to choose electronic payment applications; Where the iPhone is limited to the use of the Apple Pay service, the American company does not allow the use of other NFC applications, and almost all large banks cooperate with Apple currentlyApple iPhone owners can install customer cards from supermarkets and systems, which include QR codes or barcodes.

As for the owners of smart phones equipped with the Google Android system, they have the opportunity to choose between payments applications from companies that produce smart phones or applications from banks, which are dealt with, Pay service and customer cards

Corona crisis contributes to a major leap in the electronic payments sector
Corona crisis contributes to a major leap in the electronic payments sector

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