HP Expands Support for Securing Electronic Payments
CHICAGO, Nov. 12, 2014 — HP today announced expanded support for new cloud-based payment platforms as well as Europay, MasterCard, Visa (EMV) issuance with its HP Atalla Network Security Processor (NSP). These enhancements extend HP Atalla’s existing support for EMV tokenization and card encryption.
At BAI Retail Delivery 2014, HP also unveiled results from a new study revealing the most popular electronic payment systems, adoption trends and most critical technologies in securing electronic payment methods.
Despite privacy concerns, consumers are quickly embracing new payment systems, including mobile payments, person-to-person payments and e-wallets. According to the Security & Compliance Trends in Innovative Electronic Payments Report conducted by the Ponemon Institute (@PonemonPrivacy) and sponsored by #HPAtalla, payments with a mobile device or phone number are the most popular electronic payment method, with 75 percent of respondents saying their organizations have plans to support payments with a mobile device or phone number.1
With electronic payment adoption on the rise, the security and integrity of sensitive financial data must be addressed. According to the study, 66 percent of respondents reported the authentication of users to be a key challenge in implementing new payment methods.1 To address this, organizations can look to technologies such as cryptography, key management, hardware security models (HSMs) and interoperability. In addition, industry standards play an increasingly important role in securing emerging electronic payment capabilities.
“Consumers are increasingly adopting mobile-based and other forms of electronic payments, despite the threats to their sensitive payment data,” said Albert Biketi (@abgenx), general manager, Atalla, Enterprise Security Products (@hpsecurity), HP. “Implementing fundamental payment security technologies to advance innovative electronic payment methods is crucial in both managing risk and staying ahead of the growing number of threats.”
Securing and advancing adoption of electronic payment offerings
With more than 35 years of experience helping merchants protect their financial data with the HP Network Security Processor (NSP), HP Atalla also supports the latest electronic and cloud-based payment methods by securely processing over near field communication (NFC) through a mobile phone application. This enables devices without a secure element to make NFC-powered transactions that meet emerging standards and protocols.
HP Atalla has also expanded its nearly 20-year history of support for EMV issuance through a partnership with Cryptomathic. With its award-winning Cardlnk EMV software and key management platform, Cryptomathic is now enabled to use the HP Atalla NSP as its HSM to generate and protect sensitive EMV card information, enabling more seamless customer adoption.
Key findings from the 2014 Security & Compliance Trends in Innovative Electronic Payments Report include:
- Payments with a mobile device or phone number are the most popular electronic payment method, with 75 percent of respondents saying their organizations plan on supporting payments with a mobile device or phone number, followed by stored value cards. Meanwhile, 43 percent of respondents say e-currencies will be part of their organizations’ payment strategy.1
- A key barrier to the adoption of innovative electronic payments is security, with 66 percent of respondents reporting a key challenge in implementing new payment methods is the difficulty in authenticating users. Moreover, the pressure to migrate to these payment systems puts the security of transactions at risk, according to 63 percent of respondents.1
- Privacy concerns don’t affect consumer adoption of electronic payments, with only 38 percent of respondents saying consumers will be reluctant to use these payment methods because of privacy concerns.1
- One-time passwords or tokens are considered the most critical security technologies for electronic payments, yet on average only 48 percent of respondents say their organizations use one time passwords or tokens, while an average of 42 percent say their organizations use federated identity and authentication systems.1
- Near field communications (NFC) and host card emulation (HCE) increase the security of new electronic payments, according to 55 percent and 57 percent of respondents respectively.1
- Virtual currencies are expected to overtake paper currencies in the future, with 46 percent of respondents claiming that virtual currencies will be commonly used within the next five years.1
- Electronic payment platforms were the most deployed systems, followed by closed loop innovative electronic payments and direct carrier or app billing. Only 17 percent have fully deployed alternative payment methods for point of sale.1
“The Ponemon Institute is pleased to have conducted this research on behalf of HP Atalla to examine perceptions about the security and privacy risks associated with new electronic payment and virtual currencies”, said Larry Ponemon, CEO and Founder, Ponemon Institute. “Our findings indicate consumers are embracing new payment solutions, but security fundamentals are still required for maximum protection.”
The Security & Compliance Trends in Innovative Electronic Payments Report findings were gathered from a survey administered to 634 individuals in the U.S. working primarily in IT operations, security, and electronic deployment teams.
Learn more about research findings
For additional details on the findings from the Security & Compliance Trends in Innovative Electronic Payments Report, a webinar is available at here. HP will exhibit at BAI Retail Delivery 2014 Nov. 12-14 in booth #4338 and participate in the “Best Practices in Fraud Mitigation, Prevention and Cybersecurity” panel, which will take place on Wednesday, Nov. 12 at 11:30 a.m.
BAI and American Banker have recognized HP second overall in the 2014 FinTech Top 25 Enterprise rankings based on yearly revenues to the financial services industry.
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