Moves to safeguard customer details when making digital payments are being made by 22 major US banks.
US banking association and payments company, The Clearing House (TCH), is spearheading plans to create an industry-wide solution to the credential entry stage of online banking.
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The group is working with its 22 member banks to develop a pilot program to protect customers’ information by reducing the amount of sensitive details held by online retailers.THC hopes to test the pilot out in the final quarter of 2013.
The new system would provide a security boost to mobile payments which remain a source of concern for customers.
A standardised system is being developed to conceal card numbers from online shops by generating a random temporary number to process the transaction, according to The Clearing House, which counts Bank of America, Citibank, JPMorgan Chase and Deutsche Bank among its members.
CEO of Citi Enterprise Payments, Paul Galant, said the new system would keep up with the evolution of digital payments. "Broad adoption of digital payments will depend upon confidence in the security and storage of customer account information," he said.
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By GlobalData"This initiative is designed to provide important new ways to protect customer account information and increase customer confidence in the security of the payment systems," Galant added.
Bank of America marketing executive, Aditya Bhashin, praised the collaboration of the banks to improve the security of customer payments. "Consensus among major banks on this scale demonstrates the ability and commitment to managing risk and protecting our customers," she said.
For global consumers, mobile banking remains second choice to face to face interactions with banks. Going to the branch in person is considered by customers to be the safest way to share personal information, a survey recently found. Nearly 9 in 10 (89%) consumers responded they were willing to share details such as their phone number, address, or account number at their bank.
Consumers trusted mobile banking least, with 56% saying they would share their information over their smart phone, and 79% responding they would share details online, showing that consumers remain doubtful over the security of mobile payments. The study polled 5,000 consumers in the US, Australia, France, Germany, and the UK.
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