Merchant Innovation

Two-Factor Authentication Coming To The iWatch

The idea of wearable tech is something that excites general enthusiasts, but tends to leave many consumers more likely asking “why?” than “where do I get one?”

Apple hopes to attract consumers with seamless security, by making their forthcoming smart watch able to recognize the proximity of a wearer’s iPhone as a security check. After confirming the presence of the right iPhone, both devices would connect to a merchant’s POS. Once recognized, a notification would appear on the phone and, with either a tap or verbal command, the transaction can be approved, reports Tech Crunch.

By making wearables that much more convenient for wearers on-the-go, Apple could potentially bridge the ease-of-use/security gap that can leave some questioning the desirability of mobile payments.

Then again, the buying public so far has greeted the availability of smart watches with chilly neutrality that doesn’t indicate a market clamoring for the next big thing in the form of a phone—now with a smaller screen strapped to an arm.

Instead of pursuing the “more” of what a wearable can do, Apple is instead focusing on what the two-techs can do together when used synergistically—thus moving users more firmly into the Apple ecosystem. The phone and watch, combined with NFC and iBeacon, create a self-confirming loop that makes their secure use more possible.

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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