As new mobile payment options continue to fill the marketplace, they are matched by new consumers flooding to try them. By 2019, mobile payment usage is projected to reach 90 million.
While innovation is key to delivering successful mobile payment options, authentication is just as important. This means financial institutions (FIs) should go beyond one-time use passwords and knowledge-based authentication when determining how consumers validate their transactions. They should also address authentication within the mobile wallet enrollment process.
A recent paymentsource.com article highlights two key questions FIs should answer to take mobile payment authentication to the next level – both at the point of transaction and registration.
- Is the mobile wallet registrant (and known owner of the device) making the payment?
- Are they using an approved, appropriately authorized device to complete the transaction?
The answers to both of these questions may lie with data. By partnering with consumers’ mobile network providers, FIs can access the data necessary to adequately verify device ownership in a timely manner. In addition, FIs can validate whether a consumer’s device is active and confirm possession of the mobile account.