1. Mobile Payments: Balancing Security with Convenience
Ron King, President, CampusGuard

2. Mobile Payments Overview
Trends In Adoption
Security Risks
Securing Mobile Payments

3. Mobile Payment Ecosystem
Regulators
Merchants
Application Developers
Device Manufacturers
Financial Service Providers
Standards Bodies
Network Service Providers
Payment Service Providers
Consumers
11/16/2018

4. Who Wants Mobile Payments?
Late Majority
Millennials
Early Majority `
Early Adopters
Innovators
Laggards
Millennials are the first fully digital native population

5. Mobile Payments Awareness Is Exploding
32%
Over half (56%) of consumers now know there is technology available to use their smartphone to pay
27%
16%
11% 8%
32%
41%
37%
36%
43%
52%
56%

6. Mobile Payments Landscape - Usage
There are over a half-billion devices on 3G/4G networks
By 2020, there will be 10 billion devices
60% of all users carry their devices with them at ALL times
For high-profile, business folks and students that is near 100%
A smartphone today has the same power as a PC from 10 years ago:
Always-on network connectivity
Location aware via GPS

7. Mobile Payments Landscape - Interaction
Accessing sensitive information via smartphones is normal
Users* do not fear making purchases or financial transactions
Users * trust a smartphone over a public computer or kiosk
They rarely question their smartphone’s integrity
Limited “desktop real estate” means sacrificing notices
Security notices are often misleading and/or cryptic

8. Your Campus = A City! Athletics – ticketing and concessions
Performing Arts
Business Office / Bursars
Library – fines and copying fees
DVD rental vending
Campus Safety Office (parking fees and fines)
Dining
Residence halls
Book Store
Student Center (student activity fees, student newspaper advertising, food courts)

9. Mobile Payments on Campus

10. Types of Mobile Payments
Mobile web browser
Smartphone application
Uses SMS, USSID technologies
Credit Card transactions via WAP
Remote
Contactless
Uses NFC technology
Proximity

11. Mobile Payment Devices

12. Examples in Higher Ed

13. Balancing Security With Convenience

14. Benefits of Mobile Payments4 1 3 2
Expenses
Customer Preference
Cash Flow
“Meeting” Customer When Ready

15. Risk Assessment Required!

16. Top 10 Risks for Mobile Payments
Fraud Against Customers 1
Repudiation Fraud 6
Man-In-The-Middle-Attack 2
Payments Coercion 7
Shoulder Surfing/Theft 3
Money Laundering 8
Expenditure Against Acct. 4
Internal Denial of Service 9
External Denial of Service 10
Acquiring Line of Credit 5

17. Cause Effect Nebraska Payment Processor Breach
2003
Nebraska Payment Processor Breach
Huge Press/Media Coverage
Card Brands React
PCI Council Formed
PCI DSS Implemented
2006

18. Cause Effect 1906: Upton Sinclair The Jungle Pure Food and Drug Act
1970: Ralph Nader Unsafe at Any Speed
Highway Safety Act
2002: Enron and WorldCom
Sarbannes-Oxley Act
2011: 9/11
USA Patriot Act

19. PCI DSS and Mobile Payments
“Until it has completed a comprehensive examination of the mobile communications device and mobile payment application landscape, the Council will not approve or list mobile payment applications used by merchants to accept and process payment for goods and services as validated.”
2011
“With the United States facing government price controls on debit and restrictive routing and exclusivity rules, it is not feasible or appropriate to drive the market toward major infrastructure investments, especially in an environment where financial institution could lose billions in revenue as a result of the regulation.”
2011

20. Some Guidance…

21. Responsibilities Mobile Payments Payment Card Issuers Merchant
Fraud Identification
Development of authentication mechanisms
Payment Card Issuers
Mobile Payments
Define and enforce payment security and fraud rules
Protect the cards in their possession
Cardholders
Merchant
Employ fraud prevention controls
Ensure compliance with the rules defined by the card brands, ensuring the security of their networks, applications, and systems
Service Providers
Develop solutions that support the objectives of the other groups

22. Act Fast and Constantly Course Correct
Closing Thoughts
Prepare For The Future
Act Fast and Constantly Course Correct
Know Your Customers

23. Resources SAQs Annual PCI Workshop FAQs Listserv White Papers Blog
SAQs
FAQs
White Papers
Certified QSAs and ASVs
Annual PCI Workshop
Listserv
Blog

24. .

25. . Contact Us www.campusguard.com Ron King Mobile: 214-770-3550
Phone:
Andy Grant
Mobile:
Phone:
Allison Rivkin
Mobile: