Mobile phones have increasingly become tools that consumers use for banking, payments, budgeting, and shopping. Given the rapid pace of developments in the area of mobile finance, the Federal Reserve Board began conducting annual surveys of consumers’ use of mobile financial services in 2011. This 78-page report, “Consumers and Mobile Financial Services” (March, 2015) examines trends in the adoption and use of mobile banking, payments, and shopping behavior and how the emergence of mobile financial services affects consumers’ interaction with financial institutions.
Disover Announces Agreement with Apple Pay
Discover today announced an agreement with Apple that will allow Discover cardmembers in the U.S. to make contactless payments in participating stores through Apple Pay.
“As the mobile payments landscape matures, Discover remains committed to giving cardmembers secure options for using their cards and mobile devices,” said Diane Offereins, Discover’s president of payment services. “
”When cardmembers add their credit or debit card to Apple Pay, the actual card numbers are not stored on the device or on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on a device. Each card transaction is authorized with a one-time unique dynamic security code, instead of using the security code from the back of the credit or debit card.Discover credit cardmembers will still receive all of their current benefits, including Cashback Bonus and the new Freeze It security tool that allows them to stop any new purchases, cash advances and balance transfers when they temporarily misplace their cards.
As part of the agreement, Discover Network will enable eligible financial institutions, including Discover Debit issuers, to let their card holders use Apple Pay.
Source: Discover