The global payments paradigm is changing. Worldwide, the dominant international card schemes battle against ever-increasing fraud, exposing their underwhelming response to the emergence of card-notpresent transactions. In the developing world, banks are looking to mobile technologies to capture payments by the unbanked and remove reliance on cash. And in the first world, disruptors are carving out pieces of the market to capitalise on new technologies and widening gaps in niche market payment scenarios, particularly for e-commerce and m-commerce.
In this white paper, we discuss how a new payments scheme can assist central banks to regain control of their domestic payments, draw the unbanked into the financial system, promote a “cash-lite” economy, combat financial fraud, and reduce the cost of payments for consumers, merchants and banks without eroding margins in the payments industry.
As the IoT and connected devices become more prevalent, our smartphones are becoming increasingly connected to the world around us. Smart portable, mobile and wearable devices use a number of different wireless communications technologies, including Wi-Fi, NFC and Bluetooth. To be successful, a next generation payment technology needs to be widely adopted, scalable, interoperable, secure, wireless, low-power and low-cost. While Wi-Fi and NFC meet some of these requirements, only Bluetooth ticks all the boxes.