MagicCube has introduced a new Impact Note from Javelin Strategy and Research that outlines the potential of a PIN on Glass technology on point-of-sale (POS) commerce.

PIN on Glass turns standard mobile devices into full-featured POS systems that can safely accept payment card PINs on a touchscreen.

“By enabling higher card acceptance rates for consumers and lowering costs for merchants, the technology stands to broaden the digitization of payments worldwide.”

The report identified several distinct benefits, including improved consumer security from a cardholder verification method perspective compared to a signature.

Lower card acceptance costs may encourage some of the 55 per cent of American small business that does not accept credit cards as they do not have to buy terminals. Bank payment volumes could increase as purchase volumes and demand increase.

MagicCube is working with card brands to ensure compliance to the upcoming PIN on Glass standards drives change in PCI compliance requirements for mobile PIN acceptance. Final PCI Security Standards Council standards for software-based PIN entry for consumer-grade devices are expected by the end of the year. In the interim, Javelin recommendations participating organizations:

  • Issue PINs for existing or new EMV-chipped credit cards
  • Provide clear messaging to cardholders to assuage security concerns and promote mobile PIN-based payment card software on mobile devices
  • Work with card networks to shield small merchants from excessive liability chargebacks
  • Optimize how the fast-growing base of first-time card-accepting small merchants are serviced
  • Recognize that software-based (rather than hardware-based) advancements will be the future of payments, and incorporate that reality into new security standards

According to Michael Moeser, Director of Payments at Javelin Strategy & Research, “PIN on Glass represents a radically new software solution for PIN entry,” Javelin Strategy & Research’s director of payments Michael Moeser said. “It has undergone a successful trial in the UK and Australia for the past 18 months and is about to be released for worldwide adoption.”

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