What are Financial Sanction Checks?

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” hover_enabled=”0″ header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone” sticky_enabled=”0″]

It is a term that most of us have probably heard of at some point in our life when taking out a loan, mortgage, or any form of credit agreement for that matter, but do we know what it means?  ‘What are sanction checks and why are they used? Are they important?’  There are naturally a lot of questions around financial sanctions checks because they are somewhat of an unknown to anyone who isn’t actively involved in the process of financial sanction checks. 

Luckily enough, the team of experts at Imburse Payments are here to help answer the questions such as what are sanctions checks? How do they work? Who is subject to them?

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” text_font=”Lato||||||||” text_text_color=”#000000″ sticky_enabled=”0″]

What is a Sanction Check?

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” hover_enabled=”0″ header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone” sticky_enabled=”0″ header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px”]

Financial sanctions checks are a very extensive and particular set of searches that include referencing a number of government databases in order to identify whether or not an individual is or has been excluded or prohibited from certain industries or activities.

Financial sanction checks can be performed by a fairly wide range of employers and other organisations/authorities. Sanction checks are most common in industries that are heavily regulated such as the financial sector, healthcare etc.

[/et_pb_text]regulations[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

Why are Financial Sanction Checks so Important?

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” hover_enabled=”0″ header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone” sticky_enabled=”0″]

Sanction checks are incredibly important in the finance sector, for a number of reasons. Perhaps the most salient reason being that it helps prevent financial crimes such as financial corruption, bribery, money laundering – just to name a few. These crimes are more prominent than perhaps we’d like to think and therefore, sanction checks are a vital steppingstone to preventing them from happening. Sanction checks are also the most important process for ensuring companies are AML compliant.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

How Do Financial Companies or Institutions Comply with Sanction Checks?

[/et_pb_text]Vendor management speeds up the onboarding process.[et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” hover_enabled=”0″ header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone” sticky_enabled=”0″ header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px”]

Financial institutions and organisations are obliged to ensure that any customer or prospective customer is compliant with AML requirements. Sanction checks allow the company to protect not only their reputation but also help avoid violating sanction regulations. Given that is no longer feasible for a company to manually carry out sanction checks (there are over a thousand lists that need checking now), the company can comply with their sanction check obligations through the use of compliance software. The software itself carries out the sanction checks and will immediately flag any suspicious activities or customers who do meet requirements.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” hover_enabled=”0″ header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone” sticky_enabled=”0″ header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px”]

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

What is a Global Payments System?

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.8.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

A global payments system allows companies and marketplaces around the world to make and receive payments in multiple, certified international currencies. Although currencies may vary between payment services

The definition of a payment system is ‘any system used to settle financial transactions through the transfer of monetary value. This includes the institutions, instruments, people, rules, procedures, standards, and technologies that make its exchanges possible’ The ‘global’ element comes into play when the sole supplier, vendor, company, or marketplace has a bank account in a different country to the one in which the business is based in.

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ _module_preset=”default” inline_fonts=”Lato”]

What are the benefits of a global payment system?

[/et_pb_text][et_pb_text _builder_version=”4.8.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Global payments system acts as the intermediary between the buyer and the seller, upholding the integrity and confidentiality of:

  • bank account details 
  • the transaction total
  • built-in fraud detection systems and protocols
  • technological awareness that the payment has been processed in the correct currency

A global payments system is classed as a SaaS (Software as a Service), offering a relatively cheap option for vendors to carry out their business without having to dedicate a lot of time or resources to develop their own payment processing system. Operating as a SaaS, such systems usually price depending on the rate of transactions being actioned, business type, and industry.

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ _module_preset=”default” inline_fonts=”Lato”]

How does this make global payments more secure? 

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Transactions and payments can happen physically with credit or debit cards on a card reader, or through online transactions via a bank or private vendor using a virtual payment system to facilitate and secure payments. Reports of transaction amounts, who the vendor and buyer were, the geographical location of where the transactions took place, and any fraud attempts are kept on behalf of the Payment Service. However, they can be retrieved by the vendor, company, or business. This offers full transparency, earning insights and the peace of mind that the transaction history can be retrieved if needed. 

In the case that something was to go wrong; such as a transaction fails, a fraud attempt is detected, or something unforeseen happens. In line with sector standards surrounding global payments, the exact cause of what went wrong can be identified by local and online support teams, which is typically offered as part of the SaaS package. 

Usage and popularity of global payments have steadily been growing year upon year, so without a secure and efficient global payments method to facilitate these transactions, businesses would cease to function.

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ _module_preset=”default” inline_fonts=”Lato”]

Why are global payments important?

[/et_pb_text][et_pb_text _builder_version=”4.8.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

2020 just saw the highest number of new companies created since 2011, even with the pandemic affecting businesses and online marketplaces in all industries on a global scale. This provides factual evidence that even with the state of the world, global payments are an essential piece of the puzzle that ensure online payments and cross border transactions can take place.

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Imburse provides businesses with the freedom to grow, and establish new and empowering partnerships. We supply the flexibility to add any payment provider, within minutes, in a straightforward manner. For secure and easy global payments, get in touch with our team today.

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

What is Anti-Money Laundering Compliance?

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.7.3″ _module_preset=”default” inline_fonts=”Lato”]

What is AML Finance?

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Anti-Money Laundering Compliance (AML) refers to a set of regulations, procedures and laws that serve to prevent criminal activity in the finance space. Specifically, AML finance procedures prevent criminals from disguising illegal finances and passing them off as legitimate income, ergo money laundering.

Money laundering is commonly done through a legitimate cash-based business, depositing cash into foreign countries, or by investing criminally obtained money. AML finance regulations seek to track and prevent market manipulation, tax evasion, illegal goods trading, terrorism financing, and corruption of public funds.

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ _module_preset=”default” inline_fonts=”Lato”]

Anti-Money Laundering Compliance Procedures

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Since its formation in 1989, the Financial Action Task Force has issued the majority of such global anti-money laundering compliance laws and guidance. Almost every bank employee will receive training for AML finance procedures and are legally obliged to report suspicious activities. For example, verifying the origin or large sums, and reporting large cash transactions. Although, many banks feel AML procedures are often ineffective and generally not cost-effective. 

There is also an abundance of anti-money laundering compliance software available to automatically detect signs of illegal activity, for example, the United Nations Office on Drugs & Crime provides guidance and AML software as a preventative measure. By tracing transactions, when embezzled money is identified, it can usually be traced back to determine the victim of the crime.

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ _module_preset=”default” inline_fonts=”Lato”]

AML Requirements

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

AML regulations are often an obligation for banks and financial organisations to monitor and execute AML requirements. Such anti-money laundering compliance will include:

  • risk assessments
  • transaction monitoring
  • compliance programs
  • reporting

Certain non-financial institutions will also be required to do AML finance reports, so keeping meticulous records to track your payments and transfers is generally the best practice. Often the guidance for AML requirements takes the form of risk-based financial procedures, organisations are tasked to reasonably verify the identity of each customer and assess logical consistencies of such client information for the purpose of AML. Due diligence must also be taken to monitor transfers, particularly from customers to third-party accounts which are considered an AML ‘red flag’. It is the institution’s independent responsibility to comply with suspicious activity reporting to the relevant agency.

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ _module_preset=”default” inline_fonts=”Lato”]

Anti-Money Laundering Compliance Programs

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Financial institutions are implored to implement AML compliance programs. The purpose of this is to detect and report suspicious activity that could indicate money laundering. While it could be argued that AML finance laws and requirements only scratch the surface in terms of what the AML procedures cover, the counterpoint is that their implications reach much farther afield. While the nature of the activity and regional regulations can alter the requirements and reporting compliance, the general methodology remains the same. 

Have an anti-money laundering compliance program in writing, that outlines:

 

  1. internal risk-management procedures
  2. how these procedures are implemented within the organisation
  3. a designated compliance officer
  4. employee training
  5. an independent test of the AML compliance program
  6. plans to ensure customer information is monitored and kept updated

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

For more information on payment transfer tracking and reporting, in order to comply with AML finance compliance, get in touch with Imburse Payments today.

 

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

How Does NFC Work? Everything You Need to Know

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.8.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

NFC is playing an ever-increasing role in the mobile payment space and as such, it is increasingly important to understand it and how NFC actually works. The financial technology involved in NFC (Near Field Communication) is actually deceptively simple but has an array of benefits when it comes to the world of mobile, as well as fast and easy card payments.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

How Can I Use NFC?

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

NFC chips are stored in most modern mobile devices and smartwatches as well as newer versions of credit or debit cards. While contactless card payments are not necessarily a new phenomenon, mobile and smartwatch payments using NFC are far more exciting as it completely simplifies and speeds up the payment system. 

There are a number of different types of NFC offered by various fintech companies and mobile OS companies also offer variations of NFC. Each different offering will have minor differences in terms of functionality, but the main premise will remain the same; simplifying the payment process.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

So, How Does NFC Work?

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

NFC, which stands for near field communication, allows the transfer of data between one port and another. The most common form of data transfer using NFC is payment and financial data using contactless payments via card, mobile or smartwatch. 

There are two main ways in which NFC works, one-way communication and two-way communication:

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” inline_fonts=”Lato”]

One-way Communication

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

For one-way communication, NFC works via a powered device that reads and writes the data to an NFC chip. The powered device with one-way NFC will be items like cards, smartphones and watches etc. NFC works here by tapping or swiping your device, the NFC chip then takes and reads that data and will act accordingly, for instance, subtracting money from a card.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” inline_fonts=”Lato”]

Two-way Communication

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Two-way NFC works via two readable devices, both equipped with NFC chips that can read and write data to one another. For example, using two mobile phones to transfer links, photos and other forms of transferable data.

 

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

Are NFC Payments Secure?

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

The most important step in the mobile payment transaction is the secure element, which holds all the authorization power. Whether it’s a chip in the phone or virtual functions in the cloud, the secure element is tamper-proof and protected by a unique digital signature. As explained by Michael Armentrout of Infineon, which manufactures secure element chips, the architecture of the secure element is designed to be hardened against attacks on the phone.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Imburse Payments have a whole team of experts who are always more than happy to answer any questions you may have. Get in touch with us today to find out more.

 

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

Payment Technology Future Trends

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

It’s safe to say there have been a lot of technological advancements in the past 5 years alone. While we may not have flying cars and sci-fi inspired gadgets, many technical innovations have changed modern-day life. 

Payment technology is no different, in fact, it’s been evolving since the existence of payments to develop more efficient and secure methods. Payments are a trusted way to exchange money for goods, so regardless of the alternating technology, this is the simple goal they aim to achieve. The payments industry is constantly evolving to accommodate cutting edge technologies, and the digitisation of payments has revolutionised the way we manage our money and do business for easier, faster, and more secure payment methods. 

2020 has been, in many ways, a chaotic year for everyone. In the midst of a global pandemic, we saw dramatic changes for all industries and people all over the world. In the payments industry at the end of 2019, we saw a few fintech mega-deals as a result of “changing client demands, competition from start-ups, increased pricing pressures, and low margins in the space” according to BI. As the Fintech industry sees more and more investment into payment technology, and we have already widely adopted innovations such as virtual banking and electronic payments, what could be next?

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

Biometric Authentication

[/et_pb_text][et_pb_text _builder_version=”4.7.3″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

This is a verification method that uses biological and structural characteristics of a person, including:

 

  • Fingerprinting scanners
  • Facial recognition
  • Iris recognition
  • Heartbeat analysis
  • Vein mapping

In an attempt to combat the downsides to quickly advancing payment technology, biometric authentication provides a solution to increasing fraud and identity theft. This is a unique, yet highly secure payment technology and is considered a trusted payment method for customers. Industry data anticipates more than 18 billion biometric annual transactions by the year 2021. This is no surprise as many have embraced the use of biometric authentication to unlock their smart mobile devices.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

Mobile Point of Sale

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

mPOS has changed the payment industry and provides vendors with much more freedom when collecting payments. For many businesses, this payment technology has led to more streamlined business operations as it is more flexible for customers. According to BI, by 2021 there is estimated to be 27.7 million mPOS US devices, which has drastically increased in the past few years. This upwards trend is only expected to continue in years to come.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

Smart Speakers

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Smart speakers and home assistants like the Amazon Alexa (2014) or Google Home (2016) can be controlled by voice commands. This is not only a fun new technology, but it is also revolutionary in the sense that it makes using the internet widely accessible. This impact on online payments is clear, according to Statista 35% of users use smart speakers to buy products such as home care, groceries, and clothing. However, TNS discovered 74% have security concerns that would prevent them from making payments via voice assistants. Since the use of smart speakers is estimated to increase, so is the quality and popularity of the payment technology.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

AI & Machine Learning

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Payment technology can often be measured by one primary feature; security. No payment method will thrive if it doesn’t have high security as customers will often use the safest payment method available. In fact, AI is predominantly used for detecting and preventing security breaches. To keep up with this constantly evolving field, to process the sheer amount of data received, and to instantly detect possible threats, banks have turned to machine learning. This is the first step towards AI (artificial intelligence), as with each transaction, the machine gets better at identifying fraud transactions. An example of this is when you receive an automated text message from your bank to confirm if a payment was completed by you to confirm if it was fraudulent. AI will also improve blockchain technology to improve trading functions and payment processing.

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

Contactless Payments

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

We are moving towards a cashless society. EMV technology, Europay, Mastercard, and Visa, have all evolved from basic digits on a card to now offer secure, computerised payment methods. EMV payment technology is known for using codes that vary with each transaction, which is a much more secure way of completing payments. In an age where payments have never been easier, plastic cards are likely to be redundant to many as the less convenient option. In light of the pandemic, a cardless payment option is also a far more hygienic option. 

 

This payment technology is safer and faster than PIN technology, as it transfers the encrypted data to the point-of-sale device instantly. Samsung, Apple and Google all have a contactless payment system in place which makes the technology easily accessible for the customer. This is all due to NFC technology (near-field communication), and it’s increasingly used all over the world.

 

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

Mobile Wallets

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

RetailDive predicted that around 2.1 billion customers in 2019 would use mobile wallets. This is simply a mobile app (application) that works as a digital wallet. Various components enable easy, quick, cashless payments, so users can transfer money to other users, store money inside the wallet, and make payments. While many current mobile wallets are brand specific, such as Samsung, Apple, and Google, it’s expected that alternative companies will develop their own, competitive mobile wallets.

 

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

Bluetooth Low Energy Technology

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Produced by Apple, this payment technology identifies signals from beacons to react accordingly. While not permitted due to regulatory requirements, iBeacon technology aims to improve, or rather transform, the retail experience. Imagine you could select your items and walk out of the shop with your final selection with no thought to money or the hassle of queueing? iBeacon’s system would follow you around the shop and automatically process your payment as you leave.

 

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” inline_fonts=”Lato”]

A Customer Focused Service

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

As payment industries all over the world look to encourage transparency, innovation and competition, banks have taken a step back in their role with the customer. Targeted, value-added insights and services now operate as the go-to between customers and banks. The future of payments is sure to focus on one key aspect, making payments easier and safer for customers. Many businesses are running at vendor overload, so payment technology works to simplify the payments process to be more efficient. For example, to use multiple payment channels through one vendor, or digital invoicing. This is a trend we have already seen in the payments industry during 2020, particularly as payment integration has become easier. This is why more businesses are turning to payments as a service for innovative payment solutions.

 

[/et_pb_text][et_pb_text _builder_version=”4.9.2″ text_font=”Lato|300|||||||” text_text_color=”#000000″ text_font_size=”16px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

When looking to the future of payment technology we need to consider the customer it will be serving. Generation Z is roughly born between 1997-2012 and are a digital generation. As they shift into adulthood, with the eldest of Gen Z turning 24, a large proportion of the population will be ‘technologically savvy’. They will have a higher demand and dependence for immediate, and efficient technology.

 

As payment technology looks to improve all aspects of the payments industry, and how customers, suppliers and banks relate to it, we are sure to see a lot more investment and market competition in upcoming years. Digital payment solutions can transform your financial services, enabling an easier, more secure way to provide multiple payment methods that work in a global market. Imburse Payments provide an effective, integration-free, payments as a service. Get in touch with us for a bespoke payment system that works for your business and customers.

 

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

What is card tokenisation?

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_font_size=”18px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]Tokenisation is a term that is quite common in the world of payments. Card tokenisation is only becoming more important too, as more and more companies shift towards mobile payments. 

While the importance and use of card tokenisation are increasing, it is surprising how little people know about it (particularly given how important it is when paying for most items nowadays). In this article, we discuss what is card tokenisation, how it works, and how it is used.

 

Card Tokenisation vs. Data Encryption

Both tokenisation and encryption are used to reduce the scope of PCI Compliance by reducing the number of systems that have access to customers’ credit card information. While both have their places in payment technology, tokenisation is fast emerging as a more cost-effective and secure solution to protect customer card information. Unlike data that is encrypted, tokens are not mathematically reversible with a decryption key and PAN data is never displayed.
[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

An Example

Tokenisation helps protect your online shopping activities. When you buy something online, if that e-commerce retailer keeps the tokenized card numbers on file, your information is safe even if it gets hacked. You can have a look at our previous article to learn how tokenisation works in more detail. Essentially, once you submit your card details, they are replaced by a set of randomly generated digits called a token. Nobody will get to see your original card details and, even if criminals try to access the token, they won’t be able to trace it back to the original digits.  Card tokenisation is therefore a great tool to improve online security. 

Card Tokenisation with Apple Pay

Once you load your card details into your iPhone, Apple sends the details to the card’s issuing bank or network. The Issuing bank or payment network then replaces your card details with a series of randomly generated numbers (the token). These are the numbers that will be stored in your Apple Pay wallet.

This means that if somebody managed to get into your phone, they would only be able to access the token and not your actual card details. The Android digital wallet works similarly. Once you insert your card details into the wallet, Google will tokenise those details and store only the token. 

Card Tokenisation within Apps

When you purchase a product or service through an app and use your digital wallet to pay for it, the company you purchased from will never access your actual card details.  That means that your bank information is locked down and meaningless to fraudsters. This puts customers in a much safer position, particularly if they tend to do most of their shopping through apps. 

 

Card tokenisation is a complicated topic, but a topic that is worth knowing a bit about, nonetheless. Card tokenisation is a great way to protect your payment data and keep all transactions as secure as possible, by hiding your details from the likes of fraudsters.

 

[/et_pb_text]Card tokenisation within apps[et_pb_text admin_label=”Text” _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]For more information about protecting your business and customers data when managing their payments, contact Imburse today about our payments as a service.

How Imburse can help

Imburse offers connectivity to the entire payments ecosystem. By connecting to Imburse, you can deploy any payment provider or method, in any market, into your existing IT system. We do all the heavy-lifting so you can focus on other critical business areas whilst saving money, time and resources. Imburse works as your payment integrations partner, taking care of the time-consuming, expensive and complex integration processes for you.

With our marketplace, you can enjoy the freedom of being able to quickly and easily adapt to your customers and business needs. Our marketplace also offers all the payment functionalities you need to optimise your payments systems, including mandate management, tokenisation and smart routing. Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]