mobile payments

MasterCard Contactless Payments via Mobile Phone with no Additional Passwords

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MDM Bank, one of the largest private banks in Russia, has launched single-tap Mastercard Contactless mobile payments with no additional passwords.

Using the MDM Bank mobile app, the customers can now pay from their Mastercard account with no need to enter a PIN-code or additional app password or even to activate the application before payment. Customers simply unlock their phone and tap it to a contactless reader to pay. The service is based on the solutions by MasterCard and OpenWay, a recognised leader in software for bankcard issuing and acquiring, payment switching, digital banking services and omni-channel payments.

Consumers can now choose how they pay with their mobile phones: with or without a mobile PIN. The new PIN-less service is available to MDM Bank mobile banking customers, who have smartphones running Android 4.4 and higher with NFC support. The application also works on phones unlocked with fingerprint sensors.

The application fully complies with Mastercard security requirements and ensures the protection of financial data according to the international standards. To support the service, OpenWay was the first international vendor to have passed the Mastercard Cloud Payments version 1.0+ certification.

The new service runs in offline mode and is optional for customers. Mandatory authentication to confirm a payment can still be set up in the app, if required.

"Currently only a few banks in Russia have implemented contactless payments via smartphone with HCE technology. MDM Bank's solution allows clients to make purchases without starting the app and without the device being connected to the Internet. HCE technology allowing contactless payment is going to be everywhere: to pay for public transportation, as an access pass for work, school or university, and trends in the development of mobile payment services will only help spreading HCE technology", – Pavel Mikhalyov, director of the development of mobile services department, MDM Bank.
"We now offer a range of solutions for contactless payment – not only using plastic cards, but with smartphones and other form factors, such as wristwatch. With Mastercard Contactless payment technology, a smartphone's usual functionality is upgraded with a possibility to pay for goods and services safe and fast in Russia and abroad, since the solution is available globally", said Dmitry Tartyshev, Business Leader, Business Development, Mastercard Russia. – "We're happy that Mastercard’s technological solutions allow MDM bank to offer its clients the commodity of tap&go payment with their smartphones, making their user experience as convenient and secure as all Mastercard solutions".

MDM Bank's contactless mobile payments functionality is based on WAY4 Host Card Emulation (HCE) technology developed by OpenWay. This universal solution allows issuers to independently issue mobile version of cards and store clients' financial information in a protected format (tokens) on the bank's servers. OpenWay offers a white label application for tokenisation, which the banks can brand with their corporate colors, or use off-the-shelf. In addition, OpenWay develops a new solution that allows a bank to serve mobile tokens from other service providers (Apple Pay, Samsung Pay, Android Pay etc.) in its own, branded, mobile app.

"The opportunities for improving the user experience that we can provide using wallets and tokenization significantly exceed those available with the traditional payment infrastructure. It would be premature to say that plastic will no longer be used in five years but it's clear that there is a category of clients and business tasks for which contactless mobile payments are becoming an important competitive advantage", said Anton Polonovsky, director of business development at OpenWay in Russia and the CIS.

Recently MDM Banks’ Mobile app was recognized as the Best Mobile Banking App by Global Finance magazine in the 2016 World’s Best Digital Banks Awards in Central and Eastern Europe.

First Bank's Chat Bot is Launched on WAY4 Messenger Banking

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B1NK, a digital only bank for new generation in Kazakhstan, is now chatting with customers via Telegram.

This is the first bank bot in the region where customers can send money to friends, manage their cards and keep up-to-date on B1NK promotional offers – all via a popular messenger service.

Friendly chat bot B1NK (@b1nkbot) speaks three languages – Kazakh, English, and Russian. It answers user’s questions about ATM and branch locations, currency exchange rates, and even how bots spend their free time. Users can also request a call-back via the @b1nkbot. 

For customers, messenger banking means they have an always-on digital finance assistant. After they sign in, @b1nkbot can show them their transaction history and card balances, help them to block cards, set card transaction limits, and even to make mobile money transfers to friends. To send money, the user simply chooses the contact and specifies the transfer amount — no other information is required. The recipient receives a message confirming the transfer and is asked to choose a convenient way to receive the money (for example, transfer to a card or to a mobile phone account). 

‘Today only a couple of tier-2 banks in Kazakhstan offer mobile banking services. There’s definite potential for growth in this area, because people in Kazakhstan are tech-savvy and ready to embrace technological innovations. B1NK’s aim is to simplify banking, and to make finance management more convenient’, - Gani Uzbekov, CEO, Capital Bank Capital Bank Kazakhstan (B1NK) says.

The service is based on WAY4 Messenger Banking, an innovative white-label solution which facilitates customer service via messenger applications. The solution is developed by OpenWay, a recognised leader in software for bankcard issuing and acquiring, payment switching, digital banking and omni-channel. The solution supports customer service via all popular messengers, including Facebook messenger, Viber, WeChat, Telegram and Line. It can be integrated with any card processing system. 

‘We are happy for our creative partners at B1NK. The bank’s team is always open to discuss new ideas and is not afraid to experiment. The launch of @b1nkbot is a first for both our companies. B1NK is OpenWay’s first client to use the WAY4 platform for a completely digital bank, which focuses on serving customers via online channels only i.e. mobile banking and social networks’, - Dmitry Dovgal, depute business development director, OpenWay, notes. 

Messengers are friendly environments. Banks are beginning to realise the potential of interacting with customers in a new way, in the customer's language, using a familiar chat format. Banks are always available to their customers, irrespective of their location and device. Messenger banking is an automated alternative to more expensive SMS channels and supplements the service from call centres. Additional features, such as p2p money transfer and interactive photo, video and audio content, can also be used to attract new customers. According to statistics, messengers are an extremely popular communication channel for those aged 16-44.