Secure prepaid mobile NFC payments are on the horizon.
At least that is the goal of the new strategic partnership between digital security company Gemalto and InComm, a prepaid product and transaction services company.
According to recent MasterCard research, the prepaid card market is showing accelerated growth, proving to be one of the fastest developing non-cash payments markets, estimated to increase at an annual rate of 22 percent over the next two years.
“In this booming market, we are working closely with InComm to provide bank-grade security during the mobile provisioning of payment card information,” Sebastien Cano, President of North America at Gemalto, said in a Tuesday (July 21) statement announcing the partnership.
To securely pass prepaid card information from InComm’s platform to a consumer’s NFC-enabled mobile device, InComm will leverage Gemalto’s infrastructure. The credential management of the process will be powered by Allynis Trusted Services Hub (TSH), providing consumers with immediate use of a prepaid card for mobile payments.
The combination of Gelmato’s TSH and InComm’s mobile platform will expedite the transition of tangible prepaid to mobile payments, Cano said.
The InComm Mobile Platform (IMP) equips mobile wallet providers and merchants with the necessary tools to streamline the process of accepting and supporting prepaid contactless payments.
“Working with Gemalto, InComm now has the ability to offer secure NFC payments through mobile,” explained Michael Parlotto, InComm’s Vice President of Emerging Technology. “Leveraging Gemalto’s secure provisioning for retailers and prepaid product providers transitioning into the mobile arena combined with InComm’s open loop prepaid cards, puts us in a strong position to make the prepaid experience more secure, convenient and customized for consumers.”
Prepaid cards have continued to develop into a popular payment option, especially among “unbanked” cardholders who tend to use those cards like checking accounts.
According to a report released by Pew Charitable Trusts last month, 23 million adults regularly use general purpose reloadable prepaid cards nationwide.
Pew said its findings reflect an increased use of prepaid cards, with a 50 percent jump logged between 2012 and 2014. Key drivers came from a growing use of the cards among those respondents with bank accounts; they tended to get their prepaid cards at either banks or credit unions. Demographically speaking, Pew noted, these users had higher incomes than did unbanked prepaid cardholders.