034 035 VIEWPOINTS Europe Leads Digital Payment Expansion By William Gajda SVP, Innovation & Strategic Partnerships, Visa POS could disappear altogether, When customers enter participating payments only on a specific device, stores, they check in with the Go which is activated by the owner’s % moving to the cloud. smartphone app. As they add items to biometric authentication. Plastic just their baskets, the prices are tallied on can’t do any of this! 59 the shopper’s Amazon account and The growth of “token on file” solutions deducted when the shopper exits the will accelerate this year with merchants of consumers surveyed used their store using through computer vision, looking to make their data more mobile devices to transfer money to sensor fusion, and deep learning friends or family in 2016. technology. No checkout needed. secure from hackers. By replacing sensitive consumer account data with tokens, merchants effectively payments will continue to grow, but Tokenization “desensitize” the information they keep the key driver will come from sharing on file. If digital thieves steal this data, economy platforms such as Uber, Lyft, Behind-the-scenes payments will it is useless. They can’t employ it with and Airbnb, powered by innovative Europe is in a key position to drive throughout Europe. Visa also launched mobile tech—as well as the expected continue to grow during 2017. any other merchant, nor can they payment startups like Stripe and the digital payment revolution along the Digital Enablement Program to expansion of services like Square Tokenization makes mobile payments use it to reverse-engineer primary Square. In these propositions, the with the US. Internet usage in Western make it faster and easier for banks to and iZettle—means that mPOS will simpler, safer, and more secure by account information. customer uses tokenized card-on-file Europe is on par with that of the use the Visa Token Service to join these become increasingly popular for small substituting a series of numbers for services to pay the company, which US (a median of 87% usage) while third-party payment services. In 2017, to medium-sized businesses, many of sensitive payment details. Currently, then distributes payment to the smartphone penetration in Germany, mobile tech will continue to play a which lose up to 25% of their footfall tokenization is supporting Apple Pay, Push Payments providers of the services (e.g., the Spain, and the UK is also equal to that crucial role in the development because they don’t accept payments, Android Pay, and Samsung Pay, as Uber driver or Airbnb host). of the US (89%). Europe also leads the of digital payments. according to a Visa consumer survey well as a number of payment services Outside of the retail environment, we world in contactless card and mobile (Pew Research Center). expect to see the continued uptake With all of these new technologies payments, with more than 5 billion offered by banks. Tokenization will of push payments. In this year’s getting solidly off the ground, Europe Visa transactions in 2016 (Pew Point of Sale mPOS isn't the biggest revolution, also become a crucial supporting Digital Payment Study of more than is poised to lead in their continued Research Center). however. POS could disappear, moving technology for authentication. 42,000 consumers in 22 countries, integration. At the London Innovation At the top of the list of trends in 2017 to the cloud. Last year, Amazon Creating the ability to safely manage Visa found that 70% of the millennials Center, we welcome major merchants, Last year Visa successfully enabled is acceleration of POS payments, announced its Go app, which is the use cases and limit the payment surveyed use their mobile device acquirers, and technology companies millions of cardholders to take particularly on mobile. Growth in prime example of how retail is moving permissions attributed to a tokenized to bank online, and 57% to transfer to co-create the future of payments advantage of the expansion of Apple acceptance should also increase from check out to check-in. account makes it possible to execute money to friends or family (Pew together. Pay and Samsung Pay as they launched notably. The expansion of affordable payments only if certain conditions Research Center). Person-to-person are met. A token will work for mobile