Page 84 - ITU-T Focus Group Digital Financial Services – Technology, innovation and competition

ITU-T Focus Group Digital Financial Services
Technology, Innovation and Competition

3.2 Proximity access

3.2.1 Traditional payment cards

Plastic payment cards (e.g. Europay, MasterCard, and Visa (EMV) compliant 16-digit permanent account
number (PAN)) are a popular and well understood method of payment, be it chip-and-PIN with an embedded
chip (as is the norm in many parts of the world) or “swipe and sign” using a magnetic stripe (as in the U.S.). In
developed markets, most customers carry several such cards, and many stores are equipped with POS machines
to accept the traditional payment cards. Payment cards are durable, easy to carry, and, from the consumer
perspective, an easy payment presentment method.

3.2.2 Radio-based NFC/RFID

NFC and RFID are mechanisms where devices enabled with NFC/RFID readers can “read” an NFC/RFID tag
when they are in close proximity, usually within 10 centimetres. NFC is often thought of as requiring and
leveraging a secure element; however, NFC/RFID can also be used on closed-loop contexts simply as a radio
transmitter/identifier to convey transaction information. The RFID is significantly less expensive than NFC
cards or tags containing a Secure Element. The popularization of NFC for DFS is only gradually taking off, and
is especially popular in the context of a POS transaction, because information contained in NFC and RFID tags
can be scanned very quickly, with minimal effort or input from the customer.

3.2.3 Barcode/QR code

A well-understood form of POS payment - and possible in developed market retail or supermarket locations
- bar code readers use a laser reader or camera to “read” information stored on a barcode or QR code tag,
often in the form of a sticker or presented on a mobile device.

3.2.4 Bluetooth low energy (BLE)

For Bluetooth-based POS payments, the terminal/mobile phone is paired with the POS via Bluetooth technology
to transfer the transaction message. The payer should confirm the transaction on the screen of the terminal/
mobile phone via a signature or password.

3.2.5 Sonic

A popular payment in automated vending machines, the sonic reader is integrated within the machine which
“listens” for the appropriate payment information request from the application which is embedded within
the sonic payment function feature. This is then transferred to a backend system for authentication and
authorization.

3.2.6 Photonic payment

Photonic payment is a new mechanism using the flash lamp of a mobile phone. The photonic-based POS reads
the information encoded in the light emissions from the mobile phone which integrates with the payment
application.

3.2.7 Biometrics

Biometrics refers to metrics related to human characteristics and it is used in digital payment as a form of
payer identification and access control. Examples of biometrics used in payment include, but are not limited
to, fingerprint, face recognition, palm veins, etc.

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