QUALITY. PRODUCTIVITY. INNOVATION. endava.com
Innovation in Mobile Payments
Innovation is one of the three core tenets at ...
QUALITY. PRODUCTIVITY. INNOVATION. endava.com
Then we have Facebook Connect – where a user
registers or logs into any webs...
QUALITY. PRODUCTIVITY. INNOVATION. endava.com
APIs
The second concept, of APIs, is also well underway.
APIs are the interf...
QUALITY. PRODUCTIVITY. INNOVATION. endava.com
What next?
How does this affect me?
During a panel discussion with Ian Sayer...
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Innovation in Mobile Payments

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Innovation in Mobile Payments is a new article from Endava looking at the paradigm shift to the digital payments service and the innovations to watch near you

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Innovation in Mobile Payments

  1. 1. QUALITY. PRODUCTIVITY. INNOVATION. endava.com Innovation in Mobile Payments Innovation is one of the three core tenets at Endava. One of the ways we keep innovating is through Endava Labs, our sandbox approach to building proofs of concept and demos for large clients including retail banks, insurance and payments companies. Currently we are looking at a few innovations in the areas of Identity Management and APIs in financial services that could change your business immeasurably... Identity Let’s start with identity. The Internet is still rubbish when it comes to identity. In the real world we have driving licences, passports, signatures and PIN numbers to prove who we are. These are all forms of identification trusted by governments, financial institutions and businesses. When combined, we have what we call two-factor authentication. But on the Internet, we still don’t have any authenticated identity. You can create an account on a website, but that doesn’t prove you are who you say you are. Businesses transact using SSL certificates to prove they are who they say they are, but sometimes those businesses or other individuals need to know consumers, are who they say they are. Take AirBNB for example. You don’t want to rent a room from a convicted axe murderer, and you don’t want to rent a room to an axe murder either – you need to trust the tenant or the home owner. But if you have a great eBay rating, you still have to start from scratch again when you create an AirBNB account, why? because no one trusts anyone else’s digital identity assurance.
  2. 2. QUALITY. PRODUCTIVITY. INNOVATION. endava.com Then we have Facebook Connect – where a user registers or logs into any website using their Facebook credentials, unsurprisingly that isn’t trusted - yet. Endava conducted some consumer research, and right now, even the under 30s don’t want to log into their bank accounts with their Facebook credentials. This is going to change over time, once we get so utterly sick and tired of usernames and passwords, and of course, organisations’ inability to keep them secure. Clearly Facebook Connect isn’t the answer at the moment either. Perhaps surprisingly, the answer is likely to come from the government. The UK government is working on an identity assurance platform to solve some of the problems highlighted here. Bookmakers for example will be able to check with the government whether this person trying to log into my site really is over 18. As a car insurer, you’ll be able to check whether this person applying for car insurance really has a clean driving licence. The government Identity Assurance scheme will enable UK citizens to have their identity physically confirmed by a number of third-party agencies, such as the Post Office (which already performs some of these functions for hard copy government forms). This all sounds great, and could be a game changer. But the icing on the cake, and half the cake itself, is that the UK government has already started working with other governments to ensure its identity assurance scheme is recognised internationally, we’ll return to this theme later on in this paper.
  3. 3. QUALITY. PRODUCTIVITY. INNOVATION. endava.com APIs The second concept, of APIs, is also well underway. APIs are the interfaces which enable systems to talk to each other. Banks have been building APIs into their systems for the last couple of years, mainly so that they can release mobile apps, which interact with the bank through these APIs. Some banks’ APIs are more developed than others, but as mobile apps become more comprehensive, so will all the banks’ APIs. APIs have finally provided the much-needed interface into the dark areas of the bank’s mainframes. For decades, mainframes have been the primary reason banks have been inflexible and resistant to change. But APIs abstract this complexity and provide the much- needed flexibility. Identity + APIs = New opportunities So once we have an international identity assurance scheme and APIs in banks, consumers will have the flexibility to do banking globally. Just as you can buy something from Amazon in Italy, Alibaba in China or John Lewis here in the UK, consumer banking could become global too. But aren’t regulators going to have to quickly catch up, because soon it’s going to be quite straightforward to open a current account in your local currency, a mortgage where interest rates are really low, such as Japan (where they are 0.1%), and a savings account where interest rates are high, such as Brazil (at 11%). We’ll want to spread our risk with our savings because we won’t get the Financial Services Compensation Scheme – where the UK government will cover my savings up to £85K. So we’ll spread savings across Brazil (11%), Turkey (9.5%), India (8%) and Indonesia (7.5%) – you get the point. There is an irony here of course. What’s the prefix to almost every website you visit on the Internet? It’s “www” of course. And what does www stand for? The World Wide Web. The WORLD WIDE Web was founded roughly 25 years ago – it’s taken that long, (plus another 3-5 years) to really digitally revolutionise banking. Also half the big UK banks replace the www prefix with their own prefix (names like online, onlinebanking and ibank) – which makes you think they are preempting the move to globalization. New opportunities and a new marketplace Extrapolating beyond this model is what third-party companies can do. For our purposes we’ll call them “Financial Services Apps in 2018”. These Financial Services Apps in 2018 will be automated, and move our money around to get the best savings rates and the best mortgage rates. And this can be automated ONLY because of the identity assurance the banks’ see from an internal security perspective, and the APIs the banks offer externally. It really will be the ultimate offset current account! What of bank branches? Just like the role of libraries today – we can buy books from a penny off Amazon and have them delivered literally to wherever we want to read them, and that’s just paper books. We can download and read a digital book in seconds. But we still have libraries. And bank branches will be the same. ATMs, telephone banking, Internet banking and mobile banking – they’ve all “heralded the end of bank branches”, but we still have them.
  4. 4. QUALITY. PRODUCTIVITY. INNOVATION. endava.com What next? How does this affect me? During a panel discussion with Ian Sayers from Zapp, Bradley Howard from Endava, Chris Cooper-Bland from Endava and Nick Telford-Reed from WorldPay, the following points were made. If you’re thinking “What next?” or “How does this affect me?”… the answer is that for all the programmes you are working on, make sure that you are building open APIs as part of the project. Some agencies and industry experts talk about “Mobile first”. At Endava, we say “API first”. API first is future proof. Whether your customers start using Google Glass, wearable devices or their large TVs at home – as long as your API supports the functionality, it doesn’t matter what the output device or channel is. Whereas coding for a specific device is expensive and likely to be short-termist. And finally, we recommend a look at the Government Digital Service (or GDS) blog on Identity Assurance. Which of us really likes the current username and password situation? Be honest! Well GDS looks like the best path to solving the issue. Together with your own APIs, we look forward to seeing your organisation in the Financial Services App Stores in 2018. Thankyou We would like to thank to the speakers at “The Future of Digital Payments” event for all their inputs on the topic and the sparkling conversations generated during the event: Nick Telford-Reed, Director of Technology Innovation, WorldPay Ian Sayers, CTO, Zapp Chris Cooper-Bland, Group Head of Architecture, Endava Bradley Howard, Head of Digital Media, Endava About Endava Endava is a privately owned IT services company established in 2000. With over 1,600 full time employees, Endava currently has 11 locations across the UK, USA, Germany, Romania, Moldova and Macedonia, and an annual revenue of over £40 million / € 50 million. Endava delivers, builds and runs mission critical IT solutions and platforms for some of the world’s leading companies in the Banking, Insurance, Telecommunications, Retail, Travel and Media & Publishing sectors. Endava specialises in delivering services such as: Application Development, Digital Media, Independent Testing, IT Consultancy, Application Management and Cloud Services.

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