Page 12 - GS180602

NewsBriefs

According to Token, with the infrastructure operational, banks, merchants and can attest to the value of encryption
other providers of payment and data services can now leverage open banking technologies to protect data and
to reduce costs, generate new revenues, increase security and deliver a simpler, prevent crimes. The ENCRYPT Act is
more convenient digital payment experience for the end user. a necessary step to ensure Americans
can use encrypted technologies to
Encryption debated in Washington protect themselves and their data,

Security experts are debating the Ensuring National Constitutional Rights regardless of where they live."
for Your Private Telecommunications (ENCRYPT) Act, proposed legislation to
create a uniform national encryption policy. Introduced June 7, 2018, by Reps. Reed further noted that encryption
Ted Lieu, D-Calif., Mike Bishop, R-Mich., Suzan DelBene, D-Wash., and Jim protects data from criminal access, but
Jordan, R-Ohio, the bill would enable federal agents to access "back doors" into the current patchwork of conflicting
encrypted data. It would also prevent individual states from enacting separate state policies creates known
data access policies. ENCRYPT Act supporters call it a necessary protection vulnerabilities that criminals can
against counterterrorism; opponents argue it gives too much power to federal exploit. "This legislation establishes
law enforcement. national guidelines for the interstate
use of encrypted technology and
Rep. Lieu believes the bill has received bipartisan support because it addresses protects the data that drives our local
conflicting encryption standards for interstate commerce, economic security economies and the app economy at
and cybersecurity. "I can tell you that having 50 different mandatory state-level large," he said.
encryption standards is bad for security, consumers, innovation, and ultimately Apple Pay, Google Pay
law enforcement," he stated. "Encryption exists to protect us from bad actors lose ground at stores
and can't be weakened without also putting every American in harm's way."
According to an annual survey of
Morgan Reed, President of The App Association, added, "On behalf of app merchants, two major mobile wallet
developers and tech innovators across the country and around the world, we providers lost traction over the past
year. Merchants accepting Apple Pay
slipped from 48 percent to 35 percent
in 2018, while Google Pay dropped
from 38 percent 25 percent year-over-
year. Support for PayPal, however,
surged from 48 percent to 64 percent.
Looking at the overall picture, mobile
wallet support grew from 22 percent
to 29 percent.

Pain points cited by merchants in the
2018 Mobile Payments & Fraud Survey,
conducted by Kount Inc. and The
Fraud Practice, included maintaining
ease of use for consumers for 60
percent of those surveyed. The ability
to detect fraudulent order attempts
was a challenge for 52 percent. Even
with these challenges, nearly one-
third of merchants were optimistic
that the mobile channel will represent
at least half their total revenue by
2020.

Support across the board was up
for near field communication at the
POS, which grew from 29 percent to
37 percent year-over-year. Twenty-
six percent of merchants surveyed
indicated they plan to increase or add
support for social commerce through
social media channels.

12