payments

NFC Capabilities for Mobile Authentication

<Product feature in roadmap> 

We are willing to provide cardholders with one more way to quickly and conveniently authenticate themselves for online payments and banking operations. Now they can simply tap a card to their smartphone. 

This feature will be a part of WAY4 Mobile Authentication Application. Issuers use this solution to comply with 3DS requirements for strong customer authentication. In addition to fingerprint scanning, face and voice recognition, OTP and passcodes, this mobile application will support the NFC-based authentication method.  

We suggest the two main use cases for NFC-based authentication: 

  • Card-presence confirmation for e-commerce 

    Issuers may want to “double” security for certain e-commerce operations – e.g. very expensive purchases. NFC can serve as the second step in mobile authentication. The transaction stops being “card-not-present” and becomes even less risky. 

    During checkout the buyer receives a mobile push notification, opens WAY4 app and follows the instructions. Biometric recognition or OTP/ passcode entry go first. Tapping the card to the smartphone completes authentication. The user sees confirmation on the phone screen and on the checkout page. 

  • Enrollment of cards in the app

    To start using the mobile authentication app for online shopping, users should first enroll their card in their app. Issuers can now use an NFC tap and a special e-commerce PIN for Strong Customer Authentication.

    The NFC tap is used to transfer card details to the app. Alternatively, users can fill in the details manually.

    After that, users enter an e-commerce PIN to complete the enrollment process. An e-commerce PIN is a static security value which issuers can configure in a card's chip when it is issued on WAY4. Cardholders can receive this PIN from their issuer in the same secure way as a normal PIN. 

    The e-commerce PIN can also serve as a mobile authentication method, along with biometrics, OTP, passcodes and NFC.

    Companies can use NFC to authenticate customers and enroll their cards in any mobile application (e.g. banking apps).

To learn more about the WAY4 Mobile Authentication app, please read this piece of news, consult your BRM or request the brochure on our website.

Integration with Instant Payment Schemes

<New set of product options, separately licensed>

WAY4 is now equipped to connect financial institutions to external instant payments. 

OpenWay has developed an interface to a national end-to-end instant payment system in an Eastern European country. Through this interface, WAY4 can access the instant payment system and process account-to-account money transfers between clients of different banks by phone number or e-mail. Cardholders can also send money in real-time via messengers and social media. The credit transfers can be processed within several seconds, and the funds become instantly available for a recipient. Instant payments on WAY4 are available 24/7. 

The new interface to the instant payment scheme is based on the ISO20022 protocol. We can make WAY4 compatible with instant payment systems in any other region. If you would like an estimation, please consult your BRM.

Sample architecture of the connection to the domestic / regional instant payment scheme on WAY4

3-D Secure v2

<New set of product options, separately licensed>

WAY4 now supports the latest authentication protocol for e-commerce transactions: 3-D Secure v2, also known as EMV 3DS.  The new protocol fights fraud and makes the liability shift work in your favor. What’s more, 3DS v2 provides a frictionless checkout experience for online buyers. It results in fewer abandoned shopping carts and higher revenues for those who process online payments. 

EMVCo has certified both WAY4 modules: WAY4 3-D Secure ACS for issuers and 3-D Secure MPI/3-D Secure Server for acquirers. The new functionality supports the requirements of modern e-commerce industry:

  • New device types, such as smartphones, tablets and smart TV 

  • More data exchanged in the background for seamless security – 150 data fields vs just 15 in the older version

  • New authentication methods, including biometrics

  • Modern payment technologies and instruments, e.g. tokenization, wallets, in-app payments

  • Risk-based assessment that allows buyers to completely skip the “annoying” authentication challenges in certain cases

If you are using WAY4 3-D Secure v1, we offer a licensed upgrade to WAY4 3-D Secure v2. After the upgrade both protocols can co-exist in your payment processing until IPS stops processing the old version of protocol.

WAY4 3-D Secure v2 also works as a stand-alone solution. It can integrate via APIs into any 3rd party e-commerce infrastructure.

Instant Settlement within WAY4

<New set of product options, separately licensed>

Customers can now launch new types of real-time payments on WAY4 as we have enabled instant posting. When users accept or initiate money transfers, their accounts are immediately credited or debited. WAY4 also calculates tariffs and charges transactional fees without delay. 

The new functionality benefits all parties:

  • New business models for you to seize. With instant posting you can target multiple customer segments. WAY4 supports person-to-person, person-to-business, person-to-government payments and mobile transfers. For example, friends can split a bill in a restaurant right after dinner. Cardholders are able to pay fines and taxes immediately upon receipt. Service providers – plumber, babysitter or gardener – can be paid once the service is delivered.

  • Superb experience for credit card users. For instance, credit card holders will not be charged late fees even if they pay on the last day of the grace period. If the issuer blocked a credit card due to delinquency, WAY4 can unblock it automatically as soon as the customer discharges their debt. 

  • Instant settlement for merchants. Acquirers can guarantee their merchants immediate settlement, even for new transaction types, e.g. QR-payments. This functionality can particularly benefit small merchants and individual entrepreneurs who have a short production cycle and shortage of funds.

New POS Protocol for Expansion in Oceania, Africa and Asia

<New set of product options, separately licensed>

WAY4 now supports the AS2805 POS authorization protocol for electronic funds transfers and payments. This opens doors to new acquiring opportunities in Australia and New Zealand, where this protocol is widely used. Other applicable regions are South Africa and Southeast Asia.

Native Interconnection Hub

<New set of product options, separately licensed>

OpenWay has developed a new solution for seamless migration to a new switching system. With WAY4 Native Interconnection Hub you can avoid integration between the old and new processing infrastructure. In most cases there is no need to involve the legacy system vendor. You can execute large-scale migration projects at your own speed and avoid unnecessary costs. This solution also helps financial institutions arrange an interrupted data flow between switching systems from several vendors. If one system is undergoing changes, it will not impact the others.

WAY4 Native Interconnection Hub routes transactions between the IPS and multiple processing systems. You can configure routing rules that depend on the card, operation and other parameters. The hub supports a variety of ISO8583-based messaging protocols, including different native Visa, Mastercard, and other international payment systems’ formats.

WAY4 Native Interconnection Hub benefits financial institutions in two particular cases:

  • Phased migration to WAY4. WAY4 Native Interconnection Hub helps launch WAY4 (or another payment platform) and have it working in parallel with a legacy system. It is an alternative to the ‘Big Bang’ approach which shuts down the old system as soon as the new one goes live.

    With the phased approach, the hub captures all the data traffic from the IPS and splits it between legacy and WAY4, according to your pre-defined rules. Eventually all the transactions will be switched to WAY4, and you can disconnect the obsolete system and the hub. 

  • Interoperability of multiple processing systems. If you permanently use several switching systems from different vendors, WAY4 Native Interconnection Hub can distribute the transaction flow between them. For instance, when a company acquires a division that runs its own payment infrastructure, that infrastructure can stay in place as long as needed. The hub can route IPS transactions between both processing systems – the main one and the acquired one.

WAY4 Native Interconnection Hub also works as a stand-alone solution. It can be used by payment players who do not run any other WAY4 solution and have no previous experience with our platform.

 

Merchant Wallet: Q1 2019 update

iOS Version Has Arrived

<A new product, separately licensed>

The WAY4 Merchant Wallet app now works on iOS – with the same functionality that we introduced last year in the Android version. Merchants can:

  • Generate a QR-code for a particular purchase and accept mVisa and Alipay payments from customers

  • Share the generated QR-code (via email, i-message, messengers. etc.)

  • See and filter the transaction history 

  • Receive real-time notifications (SMS, push)

  • Reverse transactions (fully or partially)

WAY4 Merchant Wallet helps decrease the cost of payment acceptance, which is especially attractive for SMEs.

QR-Code Sharing

<Enhancement to the existing product>

Merchants can now share the generated QR-code via channels supported by their mobile device (SMS, email, messengers etc). They can also print out the code and display a physical version of it at checkout. The update applies to both static and dynamic QR-codes. The dynamic QR-code allows merchants to pre-define some parameters of the transaction, for example apply a discount or offer a product bundle at a fixed price.

Transaction History Filters

<Enhancement to the existing product>

Now users can filter transaction history by operation type and period. It simplifies sales analysis for business owners and their personnel. 

  

 

Online Interface For Capturing Financial Documents From External Devices to WAY4

<New set of product options, separately licensed>

If your POS terminals run on a third-party platform, you can receive financial documents from those terminals without delay. The new WAY4 interface accepts data from external device controllers immediately after each payment. This feature eliminates batch file uploads that may jeopardize processing performance and prevent acquirers from scaling up their business.

nexo ISO20022

<A new set of products, separately licensed>

Now WAY4 supports the nexo protocol for POS transactions based on the open universal ISO20022 standards. Nexo makes you as the acquirer less dependent on terminal manufacturers. You can exploit new-generation POS devices from multiple suppliers and develop flexible cross-border acquiring services. Nexo-compliant systems guarantee better time-to-market, smart transaction routing and higher payment security and efficiency. 

Read the press release.

Fraud Prevention Platform

<Product under development>

We are developing a new-generation stand-alone fraud prevention platform. It’s designed for issuers and acquirers who use WAY4 or 3rd party CMS, core banking, or e-commerce gateway.

The solution will support rule-based transaction scoring with minimum impact on the processing system and provide a user-friendly interface. To make a decision, it can use data from internal and external databases. 

SEPA Instant Payments Platform

sepa_scheme.png

<Product under development>

We are developing the WAY4 SEPA Instant Credit Transfer solution. It addresses the need of our customers in Europe to process the real-time SEPA payments via the major European clearing and settlement schemes mechanisms.

In parallel, OpenWay is working up a concept for a more universal platform for instant payments between bank accounts, including payments initiated online via authorized third parties. It would adapt to payment regulations of various world regions and support multiple use cases. We are ready to finalize the new platform in accordance with your specific requirements and launch it into production together.

Visa Credit Voucher and Merchandise Return Authorization

<Enhancements to the existing product>

We’ve implemented Visa Credit Voucher and Merchandise Return Authorization message flows. This functionality was mandatory for Visa issuers from April 2018.

Now WAY4 can get acquirers’ information about purchase returns and update cardholder statements in real time. The card’s available credit balance will be increased immediately, unless the issuer has configured a waiting period.

This feature improves the cardholder experience. Furthermore, for issuers and merchants, it means less chargebacks and less customer inquiries about outdated balances.

Account Updater Service

<New set of product options, separately licensed>

The Visa Account Updater (VAU) and Mastercard Automatic Billing Updater (MABU) services help merchants to process account-on-file transactions and recurring payments on renewed or replaced cards without interruption, and to get earlier notifications concerning the card closures. Now our system supports this feature for both issuers and acquirers.

After issuing, reissuing or closing a card, WAY4 generates VAU/MABU files. They are sent to the IPS network for the benefit of other scheme members.

Mobile Authentication Application

<Product under development>

OpenWay has developed a special mobile app to improve the cardholder e-commerce payment experience. The app uses biometrics and other user-friendly authentication methods, instead of OTP from SMS. It saves cardholder time and issuer's money usually spent on the SMS service. 

To complete an e-commerce transaction, buyers are usually redirected from merchant websites to the issuer’s portal (ACS). At this point you can offer authentication via mobile. The cardholder receives a push notification from the app, opens it and confirms the payment by fingerprint (or passcode).

 The solution includes:

  • Mobile application for Android and iOS

  • SDK for embedding the authentication functionality into 3rd party apps (e.g. mobile banking app)

  • Application management tools (solution back-office)

  • Interface between the app and ACS

Interchange Fee Reconciliation

<New set of product options, separately licensed>

Now WAY4 can import Visa and Mastercard reports that reflect interchange fees charged by IPS on every past transaction. Such information helps acquirers to maintain the pricing transparency on acquiring services: merchant will see prime cost of transaction and how much they pay on top of it. In particular, this transparency is a must for SEPA acquirers who should comply with the MIF regulation in Europe. All fees are presented in the merchant statements and reports.

Acquirers can feed this data into their analytical systems in order to identify the most common gains and losses, measure the profitability of merchant accounts and develop customer portfolios more strategically.

If you are using WAY4 Fee Prediction,

The new feature also reconciles your predicted interchange fees against the actual values. WAY4 records the difference (if any). A wide discrepancy may signal that IPS overcharged the acquirer for some reason. Now you can be alerted to such instances and investigate such issues in timely manner.