PIN on Mobile

PCI: Software-Based PIN Entry on COTS (a.k.a. PIN-on-Mobile)

Almost four YEARS ago I wrote Software PIN, the Rosetta Stone of Future Payments, then just over a year later I wrote; Mobile Authentication: Exceeding Card Present Security?

Just this month the SSC finally came out with their Software-Based PIN Entry on COTS Security Requirements v1.0.

[Ed. While I don’t have to wonder why PIN was my primary focus, I can see how pointless it was …almost. It just makes the delay on this standard that much more inexcusable.]

On with the story… Software PIN is more commonly referred to as PIN-on-Mobile (or the catchier PIN-on-Glass), and is the ‘game-changing’ technology that will; “enable merchants to accept PIN-based payments with the PIN entered on a commercial off-the-shelf device, such as a consumer-grade mobile phone or tablet.”

What has taken them so long to make what – from my jaded perspective – is the only move that will delay their inevitable demise? It’s not like there was some miraculous innovation in mobile or encryption technology in the last couple of years! Every requirement in the standard was available/achievable long before I even wrote my blogs. As were viable solutions for that matter.

I suspect there’s lots of reasons of why they were so slow, but chief amongst these has to be their complete inability to adapt to the fast-paced innovation rampant in the FinTech industry. Especially given their hopelessly antiquated technology. It’s only their global adoption and sheer ubiquity that keeps them where they are. I blame the banks too, change for them means acceptance of liability.

Come to think of it, what an amazing coincidence that PSD2 – the biggest nail in the payment card’s coffin since …well ever, came out this month as well. Weird huh?

As far as I am concerned, PIN-on-Mobile was the card brand’s last hold-out, now they’re done. Hopefully between the XYZ-Pays (ApplePay, SamsungPay etc.) and now the entry of cardholder PIN on [almost] any CoTS device, big merchants / retail associations will finally have the balls to stand up for themselves.

How many millions have they spent in the US on EMV terminals just to find out a few years later that it was not only entirely unnecessary, but they’re now tied into an investment that will leave them lagging behind their competition who were slower of the EMV block?

I know that’s harsh, and we really have no right to judge. Have any of the following questions ever occurred to you?:

  1. If I can use my phone to pay for something, why do I have to tie that payment to a branded card?;
  2. With all of the security requirements required for the entry of a software PIN, why the Hell do I still have to use one? In other words, if it’s that bloody difficult to secure it, why not use something else?; and
  3. Isn’t there a better way!?

If you’re like the majority of the population, these questions are more like:

  1. Why doesn’t MY bank support this?! (looking at YOU Barclay Business!), or more commonly; why would I use this service when I have a piece of plastic?;
  2. What’s wrong with PIN?; and
  3. [nothing]

The fact is that the lion’s share of the cashless transactions globally are performed by those who have never known a time before payment cards. We simply can’t imagine anything else and we don’t even notice their inconvenience. We also don’t see the costs imposed by the middlemen.

But let me ask you this; Would you ever go back to using a feature phone? I’ll [almost] guarantee that you had no idea what features you wanted in a phone until you used a smartphone for the first time. And now you can’t live without it. Hell, most of us can’t even put the damned things down!

The same thing WILL happen to payments, but not until consumer indifference is overcome by something shiny and new.

Frankly this blog is boring even to me, and I really have nothing more to say about payment innovation that I have not already said a hundred times. But I simply can’t let anything so patently meaningless as PIN on Mobile to go unanswered.

Innovation my arse.

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