Payment companies need to see mobile as the incumbent channel

Mobile phones are turning into an extension of our arms. If not having access to the internet makes you feel like you've traveled back to ancient times, forgetting your mobile phone at home has turned into the ultimate modern tragedy.

From contactless payments to electronic tickets and boarding passes, smartphones have triggered a whole new world of possibilities for traditional industries to jump onto the m-commerce bandwagon. The new decade will see Generation Z become adults, and they will expect more and more services and activities to be facilitated by their device of choice: mobile.

Leaving home in the morning means ensuring we’re carrying the vital three: wallet, keys, and cellphone. In this scenario, which includes adults spending an average of over 3.5 hours per day on their mobile phones, we can only expect to see more and more daily activities being facilitated by just reaching out to our smartphones — from making money transactions and getting food delivered, to booking doctor appointments and gym classes.

In the coming decade, we're leaving behind an era marked by e-commerce as the retail space’s key player. E-Commerce isn’t disappearing, but it is allowing m-commerce to take center stage. Even if the consumer decides to purchase items on the larger, more easily visible computer screen, they often begin the funnel process of browsing on a smartphone.

By 2021, m-commerce sales are expected to account for 54% of total e-commerce sales. Europe is currently leading the way with m-commerce: 67% of online shopping comes directly from mobile (compared to 59% in the U.S.) Mobile users downloaded 5.7 million retail apps in 2018, a 50% increase from 2015. The trend is not only taking a foothold in the U.S., though. South America, for example, is growing at an impressive pace and leads the world in m-commerce growth between 2018 and 2019, with a 36% increase.

If millennials embraced the internet and online shopping, Gen Z, the generation that succeeds them, is not only all about online shopping but also about the convenience of making any transaction through their mobile phones.

As a report by Google explains, "while millennials were mobile pioneers, teens are mobile natives." Born in or after 1995, this generation hasn’t lived in a world without the internet or mobile phones. Mobile is the number-one device they use — and they’re connected all the time.

According to the same report, Gen Z uses social media for consumption (and stalking) but not for sharing since it's not seen as "cool." For them, online shopping eliminates friction, and some of its benefits besides convenience and being faster than going to physical stores, include access to better deals, brands, and retailers without leaving home. Additionally, social media has created a persona for every brand, and Gen Z high hopes for the brands they choose.

From Nike to Xbox, they expect personalization, even when they make a purchase online. Influencer marketing appears to work the best, with 57% of Gen Z consumers making a purchase based on a media influencer. Again, the key player in this scenario is their mobile 

Whats the use of CVV in Creditcard?

Often, I always get questions from my colleagues, friends and my kids why it requies CVV in creditcard alone though its been there long time now. Wanted to write something on the need of CVV.

If you have done any type of online shopping, you will most likely have had to input your credit card’s CVV. The CVV is the three digits on the back of your card (four on the front if you have an American Express card), which act as an anti-fraud measure.

But what does CVV really mean, does it go by another name and is it safe to give out over the phone?

What is a credit card CVV?

CVV stands for a card verification value.
It can also be called a card verification code (CVC) or card identification number (CID). It is the anti-fraud measure for when purchases are made without the card being presented, for example online or over the phone. It is the way that the retailer can ascertain that you have the physical card and are therefore authorised to make the purchase.
If you want to get technical, it is a Secure Socket Layer (SSL), which is a digitally provided certification process. The CVV was introduced in order to reduce fraud for internet transactions and provides a cryptographic check of the card’s information. This means that the CVV is not part of the card number itself; instead it is separate.

How do I find my CVV?

For cards provided by Visa and Mastercard, the CVV is on the back of the card. However, you may be fooled by the fact that there are more than just three numbers on the back of your card. This is because providers typically include the last four digits of your 16-digit account number, followed by the CVV.
Of course, American Express often dances to the beat of its own drum. So if you happen to be an American Express cardholder then you will find the CVV on the front of the card, and it will be a four-digit number instead of three.

Is it safe to give out my CVV?

Most of the time, yes – it it safe to give your CVV. As I mentioned, the CVV acts as an anti-fraud measure. So if you are required to input your CVV when making an online purchase, this is a good sign that the retailer takes fraudulent transactions seriously. You may also be asked for your CVV when making a purchase over the phone. If this is the case, make sure you are not in a crowded place. While it is unlikely, there is always a small chance that your conversation could be overheard and your information recorded.
If you are making a purchase in person, you do not need to give out your CVV; your PIN or signature is enough for the retailer or service provider to process the transaction.
If you lose your card or have it stolen, make sure you cancel it immediately. If someone has your physical card, and therefore also your CVV, there isn’t much to stop them making online purchases.

Conclusion

Overall, a CVV is a good thing. The CVV adds an extra layer of security to online purchases, verifying that the user has the card at the time of the transaction. As with anything to do with credit cards, there is a risk of fraud – but using your CVV means there is a check when you are performing a ‘card not present’ transaction. The CVV provides a second number that fraudsters would have to steal in order to use your card without your authorisation.

As always, if you are concerned with making purchases online or over the phone using your credit card, monitor your account closely so that you can spot any fraudulent transactions.

Similarly, some providers or credit rating agencies set up notifications to alert you when they suspect that your card has been used without your authorisation.