New cards, new payment modes, new technologies in the retail segment

Across the globe, payment by card is becoming more popular and efficient, with new applications appearing every day.

Security is one of the major improvements in electronic transactions. It is driven by the need for more secure PIN verification techniques. New algorithms (e.g. RSA) with public key infrastructure are now used, and triple DES algorithms with longer cryptographic keys encipher the PIN for better protection. All these calculations require more and more powerful payment equipment.

New cards
Smart cards also improve security, with the international EMV migration programme enhancing this. Numerous countries in Europe, Asia and Latin America are issuing EMV smart cards and modifying their acceptance terminals with new readers. EMV Co (created by VISA and MasterCard) has established international certification for payment terminals.

New payment modes
Different methods of payment – both pre-paid and pre-authorised – have also been created. While traditional credit and debit are still the most popular, in several countries electronic purses are in use. There are also other applications integrated in payment terminals to meet retailers’ requirements, including loyalty programmes and private label cards. This has led to the emergence of a multi-application structure, which has become a necessity in payment terminals.

New technology
Technology has improved in parallel with the development of payment modes. Portable GSM or GPRS terminals are used for mobile payments (home delivery, markets, exhibitions, etc), and DECT and radio communication are integrated to bring new services to retailers such as restaurants and bars. Small and user friendly, all portable terminals are easily integrated in the point of sale. Furthermore, IP links are used to speed up the payment process and bring cost savings to the user.

New cards, new payment modes, new technologies – the payment world is undergoing great change, and BBS Denmark is at the forefront with innovative payment solutions for the benefit of the whole retail industry.