A recent paper by Juniper Research has assessed the regulations and standards which might affect the development of mobile payment security in the near future.

Because 2FA is required by the SCA rules of PSD2, Juniper expects plenty of firms to use text messaging as a security measure, as it is a fairly simple method. SMS (short messaging services) have security-relaed problems, however, and it therefore expects this to make it unsatisfactory in the long run. This will present opportunities for a range of IAM (Identity and Access Management) and other authentication providers to offer up their own hardware and software for SCA purposes, although it will take several years to become truly established.

Web standards

As well as regulation, various standards are in widespread usage for web and mobile commerce. These are bound to have an effect on mobile payments as well.

The appliance of bio-science

Juniper predicts that banks will use biometric authentication to secure US$2.5 trillions' worth of mobile payment transactions by 2024 - an increase of almost 1,000% on today's figure. The availability of dedicated biometric hardware will not be an obstacle to biometric usage, as it will be present on an estimated 90% of smartphones by 2024. However, Juniper expects less than 30% of these phones to be used to authenticate contactless payments, thanks to the presence of contactless cards.