Domestic schemes offer better choices

Despite regulatory reforms and the introduction of real-time settlement systems, today’s payments industry still suffers from a litany of problems, many of which are related to the card-based technologies that still underpin in-store and online payments:

  • Card-not-present (CNP) payments are the major cause of card fraud.
  • Card-on-file (COF) exposes consumers to a high risk of data breach and identity theft.
  • The POS hardware needed to connect with cards and e-wallets is expensive to install and operate.
  • Authorised push payment (APP) fraud rate is on the rise due to the lack of even the most basic security protections.
  • Direct debit and COF exposes consumers to high fees when payment fails due to lack of funds.

And the latest mobile payments technologies, such as digital wallets, can’t fix the problems. The flaws and inefficiencies are deeply rooted in the underlying payment processes. Implied authorization, batch processing, extended clearing cycles, rigid procedures, complex contractual arrangements, opaque fee structures, and rising fraud rates characterize the electronic payments business.

Consequently, financial institutions are now looking to their domestic switch to provide a broader range secure payment services. New request-to-pay (RTP) payment technologies, like Bluechain, can offer switches much greater flexibility to integrate the new with the old and deliver major benefits to every participant, from well-established tier-1 financial institutions to the newest generation of e-commerce and m-commerce service providers.

Bluechain RTP is seamless, intuitive, and secure, works across all channels, and supports both push and pull transactions with a single security process. And Bluechain schemes do not rely on traditional clearing systems for authenticating payments. And when a payment is transacted using Bluechain, the approval is explicit because the details of the payee and payer and the authorization are bound to the transaction.

  • The risk of fraud is significantly reduced because Bluechain secures both peer-to-peer and CNP payments.
  • The risk of data breaches is eliminated because Bluechain never reveals the consumer’s identity.
  • Hardware costs are reduced because Bluechain works on existing Android and iOS mobile devices.
  • The risk of APP fraud is reduced because Bluechain verifies the identities of both the requestor and approver in every push payment.
  • And consumers avoid the high fees charged by banks when direct debits fail because Bluechain gives consumers full control over the timing of every payment, directly from their smartphone.

Bluechain is enabling national switches around the globe to transform their domestic payments by offering services and benefits to merchants, billers and consumers alike that the international schemes cannot match, either on function or on price.