By Terrie Smith, CEO, DIGISEQ
Wearable technology has been around for decades. The digital watches that were made by Pulsar and Casio in the 1970s were the early forerunners for the smart gadgetry that has flooded the market in recent years. Advances in technology have allowed greater variety in the types of device on offer, from disposable items worn at festivals, to high value fashion accessories.
The fitness market has been dominant in wearables, but the technology industry is developing an ever widening pool of uses, from access control, ticketing, transit, loyalty, and identification.
Enabling wearables for payments is the next frontier for wearables, as the likes of Apple’s iWatch is demonstrating. However, provisioning payments products is often costly, time-consuming and requires specialist expertise and knowledge. For example, the payments industry has exacting security requirements – and for good reason.
Typically, this will involve needing to embed a “secure element” (a smart card device) into the wearable onto which sensitive payment data and payment logic is provisioned. This provisioning process is complex and specialised and may require commercial relationships with particular industry players. Furthermore, to meet card scheme and regulatory requirements it will be necessary to involve a licensed financial institution. The real challenge for banks is to be able to link to each of the millions of devices – but we see opportunity and scale in responding to this, and we’re pleased to be working with Mastercard to deliver payment capability to wearables.
Through a single, secure connection with Mastercard, DIGISEQ bridges the gap between consumer devices and its banking partners, thus meeting consumer demand and adding value of service provided by the banks to their customers.
DIGISEQ partners with device manufacturers and underpins the services required to bring KerV to the market at scale in conjunction with Mastercard’s tokenisation service to ensure that no card details are stored on the device, or passed onto retailers during a transaction. The success of KerV is a response to the demand for convenient alternative payment methods by consumers. KerV understood that carrying a wallet or purse isn’t always practical, so developed a contactless payment ring. The ring allows the user to leave wallets, purses, cash, coins and cards at home and still make payment – anywhere that accepts Mastercard contactless.
We are pleased to demonstrate the capability of DIGISEQ Wearable Management Platform working with KerV By allowing consumers to load their own wearable device and give them the power to make an instant payment at the point of sale, we are opening up a new era of consumer-centric service.
There is already an emergence of challenger banks beginning to adopt DIGISEQ technology to give their customers more freedom and convenience with wearable payments.
See the KerV ring being demonstrated at Money 20/20 in Copenhagen on June 26-28 at booth #A2.