The recent security breach at Target increased the number of cards that have been compromised to 70 million. The increases in systems being hacked to gain access to mailing addresses, email addresses, phone numbers, names, and related financial account information proves—without a doubt—we are in a security crisis. One expert defines card data as being radioactive material from a fraud- and brand-business perspective.
The vulnerabilities allow these breaches in payment security to occur and are the result of highly skilled hackers, lack of online security, and/or tools that created security gaps either because the users failed to apply them correctly, or they do not exist in the first place. Sometimes businesses and individuals fail to understand the importance of incorporating “layers” of security in much the same way a person layers clothing in order to stay warm in the winter.
The Important Role of ACTs
With all the new technology that revolves around payment security and collection of data, it is important for businesses to understand the impact of ACTs (Age of Context) and how they can affect the average transaction that flows through a retailer, wholesaler, or financial institution.
The combination of smartphone use and the cloud creates five ACT arenas within modern technology that have the potential to change how each person or business interacts, sells, markets, and navigates life on a daily basis. The five technology areas are:
- Social networks
- Big data
- Mobile devices and communications
The various combinations and intersections that are prevalent among these technologies cause the average buyer to expect more from a transaction, while also creating supplier concerns about security and future-proofing their business. The negative impact to the Target brand due to the security breach will take years to rectify. Other companies want to avoid this. There are many stakeholders that play a role in the future of commerce and security: retailers, major CPG brands, consumers, financial institutions, and even Google, Microsoft, and anyone else involved in the payments industry who are looking to prevent and avoid payment security issues.
The role of ACTs in commerce is predominantly one of application. They have the capability to enact payment security mandates in order to ensure the safety of all transactions a person or business conducts. Combining data and real-time insights from more than one of the above technological areas makes it possible to provide risk assessment and adaptive security countermeasures that are more accurate and timely. However, typical payment providers are not well-suited to do this.
What is needed is a payments system that can execute and settle payments securely, in real-time, 24/7/365, anywhere, anyhow, while directly connecting and making use of the transaction data to trigger adaptive security measures and different types of payment. It also must have complete traceability and tracking built into the system. Also, any and all financial and personal data must be kept independent and encrypted – and far out of the reach of potential hackers. This is what buyers and suppliers want—but to date, traditional payment providers have failed to deliver. The good news is that this new breed of payment exists today, and with it’s award-winning Dynamic Payments platform, Traxpay is transforming the way that businesses pay and get paid.
Traxpay can help you prepare for ACTion. Click [contactus_popup]here[/contactus_popup] for additional information.