Apparently an announcement was made at the PCI SSC ‘s Community Meeting in Nice that “European Payment Services (EPS), [is] the first company to have a solution listed…“, this according to Tenable’s Jeffrey Man in his new article ‘What’s Wrong with P2PE‘.
I’m not going to go into why P2PE is dead from a PCI perspective, Jeff covered that better than I can, instead I’ll cover it from an innovation and real-world perspective that the SSC simply cannot / will not include in their presentations.
Why P2PE is pointless, and dead before it reached the gate:
- If you have read the P2PE assessment procedures (which were about 2 years too late in being released), you’ll know that they make the PCI DSS look like a nursery rhyme. EXTREMELY complicated, and ENORMOUSLY expensive to achieve certification. I was, however, very surprised that PED / payment terminal companies with significant resources (like VeriFone and Ingenico) didn’t get into a race to corner the market early, but now it makes sense;
- P2PE done the SSC’s way still requires PTS and SRED compliant payment terminals, which are massively expensive, and whose days are numbered. Mobile payments, and whatever comes next will, thankfully, kill retail’s reliance on payment terminals and bring secure, non-cash, payment capability to every merchant world-wide, no matter how small, or large and distributed;
- Chip & PIN (EMV) technology is tied to the terminals and to the use of credit cards, which along with payment terminals, are dying technologies. Credit cards are 60+ years old, and EMV was a very poor patch to fill a gaping hole in credit card security, so innovation will, and in some cases already has, replaced the need for both;
- Retailers are simply not going to make the massive investment in replacing their payment terminal estates before they end of life (EoL) just because of a possible reduction in PCI scope. And why would they then spend a fortune in expensive devices, tie themselves into a single service provider, as well as limit themselves to credit card transactions? Answer; they wouldn’t, not unless they’re irretrievable stupid;
- The entire payment space is finally recognising the fact that it’s bloated, inefficient, enormously outdated, and complex. Innovation will simplify it back to its basics, which it that it’s not ABOUT payments, it’s about authentication. I don’t care how I access my funds, whether they be debit or credit (both of which are provided by the bank anyway), I just want to do it whenever I want, wherever I want, and without risk.
Any protection the card brands provide related to fraud and consumer protection can be provided cheaper and probably better by the banks, and this, along with the demand for better customer service, will drive the banks to compete for our business as never before. Gone will be the days that they can act as though they are doing US a favour.
As for the SSC’s announcement, I can’t blame them for wanting to announce any kind of success, God knows the DSS v3.0 is nothing to write home about.
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