Category Archives: Loop

Rampant: Explaining the current state of Apple Pay Fraud

Two quick notes before I trade a chilly 36 for a blistering 96, and spend the next few weeks in India. First up is on Samsung’s acquisition of Loop Pay. Second is a followup on Apple Pay Fraud that has now graduated from an itch to a raging infection. Continue reading

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Smart Mouse Traps and Lazy Mice

“Building a better mousetrap merely results in smarter mice” – Charles Darwin

Credit card issuers in general have a good handle on fraud. They manage it under 10bps (i.e. losses of $0.10 or less per $100 of transactions) on transactions made with a dumb plastic card lacking any additional context. So Issuers wishing for Apple Pay fraud to fall between 2-3bps was not totally out of character, considering the protections in place by Apple and Networks to keep fraud away – including Issuer support during provisioning, NFC, Tokenization, a tamper proof Secure Element and TouchID. But fraud seems to have followed a different trajectory here. About a month post-launch, it seems like fraud has come to Apple Pay. (in one case – as high as 600bps for an issuer that I cannot name). Though what follows was written in the context of Apple Pay, much of it translates to any other competitor – irrespective of origin, scale, intent, or patron saint. Continue reading

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Apple Pay: First Observations And Closing Thoughts

If rumors hold true, Apple Pay will launch in a week. Five of my last six posts had covered Apple’s likely and actual strategy in payments & commerce, and the rich tapestry of control, convenience, user experience, security and applied cryptography that constitutes as the backdrop. What follows is a summation of my views – with a couple of observations from having seen the Apple Pay payment experience up close. About three years ago – I published a similar commentary on Google Wallet that for kicks, you can find here. I hope what follows is a balanced perspective, as I try to cut through some FUD, provide some commentary on the payment experience, and offer up some predictions that are worth the price you pay to read my blog. Continue reading

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The diminishing aura and utility of Coin

Coin

Much has been written of late, about Coin and its peers. Coin, Loop and others are worthy emerging players who have focused on innovating on the edges of the current payments framework – and consider convenience a more lucrative goal vs disrupting it altogether. Despite bank’s aversion to having their brands wrapped by a 3rd party – Coin and its peers have much consumer support. I have little to say about the product as-is – I think it’s a sexy widget, but for me – I am too cheap to pay for a plastic replacement when I carry around one already. However I believe they are intentionally evasive when it comes to their respective roles in an EMV landscape. Much of that follows focuses on Coin, but really – applies to Loop and others as well. Continue reading

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