Payments Outlook 2016 2017
“ Machine learning technology includes algorithms specifically developed to identify fraudulent transactions ”
By adopting the machine learning technology , which includes algorithms specifically developed to identify fraudulent transactions , merchants are able to observe high-risk transactions being flagged and scored . The scores of these transactions are then processed by setting relevant rules . It is essential for this new technology to be used in conjunction with more established fraud prevention technologies to obtain optimal results .
Consolidations Following the consolidation of a number of prominent gaming giants in 2015 , it was assumed that this trend would continue through into 2016 . But although there were a number of promising discussions , most of the proposed mergers never took place , resulting in less consolidations . Due to time and a range of other factors , from the large number of participants in the EMEA market , to increasingly large tax and regulatory burdens and an industry-wide drive for cost savings , merchants are beginning to enjoy the benefits of this consolidation push , and hopefully this trend will continue into 2017 . by February 1 , 2018 . PCI DSS 3.2 has been adjusted to address the growing risks associated with payment card processors , merchants , retailers and the like . Payments providers that are PCI DSS compliant will need to adhere to all new updates and make adjustments accordingly .
Alternative payment methods According to a study conducted by the research firm Nielsen in 2016 , 4 it is evident that credit cards are not the only means of payment being utilised online , and that alternative payment methods are becoming increasingly popular . A number of online purchasers are favouring alternative payment methods such as PayPal , debit cards or direct debit from their bank account . For payments providers , this means there is a growing need to offer additional alternative payment methods and work on strengthening relationships with various alternative payment providers . that uses heartbeat authentication or by using a car . Coupled with these innovative payment scenarios is the importance of leveraging big data to enhance a player ’ s experience by utilising knowledge about them to provide more customised and incentive-based offers .
Bitcoin Bitcoin is still a trend in a disruptive payments market that is yet to be widely recognised , and is being closely monitored by stakeholders in regards to its future development and approval .
Fast forward to the future There have been a number of payment breakthroughs in the past few years with unconventional ideas , products and technologies which have altered the makeup of the payments space .
Payments technology , player requirements , regulation , risk and a changing landscape continue to drive innovators to provide more ways in which to further evolve the payments industry . Continue to watch this exciting space for the emergence of fresh developments and challenges .
“ Wearable technologies , the Internet of Things ( IoT ), and big data all form part of ‘ guerrilla payments ’”
Bolstering security PCI gets an upgrade Security Standard ( PCI DSS ) is about to launch a new version , PCI DSS 3.2 , 3 which will replace the current PCI DSS industry standard for payment data protection . In order to prevent , detect and respond to cyber-attacks efficiently , all companies will need to be compliant with the new standard
Guerrilla payments As in guerrilla marketing – which uses unconventional methods to convey a tailored marketing message – a similar trend is emerging in payments . Wearable technologies , the Internet of Things ( IoT ), and big data all form part of “ guerrilla payments ”. Today , it is possible for a player to make a payment from a watch , a wristband
3 https :// blog . pcisecuritystandards . org / pci-dss-32-is-here
4 http :// www . nielsen . com / au / en / press-room / 2016 / new-technology-offers-consumers-worldwide-greater-access-to-borderless-shopping . html
Shemer Katz is General Manager , SafeCharge ( Israel ) Ltd . Shemer joined SafeCharge in 2012 , and leads the product and corporate marketing for online and mobile payments . He is an expert in Internet business models and holds a BSc and MSc in Electrical Engineering from the Tel-Aviv University .
iGamingBusiness | Issue 101 | November / December 2016 | 75