MASTERCARD-7
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🛠️
LifestyleTranscript
00:00 Welcome JK to Khalid's Times.
00:02 I think this is a very challenging time that we live in.
00:04 Maybe you can tell us a little bit more on what's happening in digital front payment systems and financial services.
00:10 You know with great power comes great responsibility.
00:12 Exactly.
00:13 You cannot just roll out stuff and expose people to, you know, new threats.
00:17 Welcome JK to Khalid's Times.
00:24 We are basically having a very small, very nice chat about, you know, the future of digital payments, financial services with Mastercard.
00:31 Maybe you can tell us a little bit more on what's happening in the whole digital front payment systems and financial services.
00:37 That is tied to Mastercard of course.
00:39 No, absolutely.
00:40 I think the biggest change is that the widening of choice that the consumers have today, right?
00:46 Consumer choice on the payment side has gone from literally only being able to pay with a piece of plastic to being able to pay with their phones,
00:54 using a piece of plastic, directly from their accounts on the account to account side.
00:58 And that's just not only in terms of transactions.
01:01 Today you're going to be, as open banking regulations come into play, you're going to be more exposed to, you know, being able to choose banks,
01:10 choose products from different banks, being able to see all your activity across all banks on one app.
01:16 So the future is actually rosier for the consumer, arguably more challenging for the providers because now they have to kind of scratch their heads a bit harder
01:24 to come up with the next best innovation, the next best product and the next best features.
01:28 So I think it's, you know, the future is interesting for sure for consumers, more exciting and more challenging for banking providers.
01:37 And also allows more participation from fintechs to provide either better use cases, better user experiences, better customer journeys,
01:46 and really help develop the industry where probably for banks, for whatever reason, the ROIs were not justified.
01:54 For fintechs probably it is, and they will try to commercialize and try to scale.
01:58 So we think that the change that we're about to see on the financial services front, driven by these technologies, is going to be nothing short of magnificent.
02:07 Do you also think that, you know, there is this acceptance and adoption of contactless payment systems?
02:13 Yeah, I think, look, what we have seen since COVID was an acceleration of people's preferences towards paying with contactless means.
02:24 Like I said, whether they're using contactless cards, their phones, paying using QR codes, paying using, you know, one-click checkouts.
02:35 People's preferences have changed significantly because of COVID initially.
02:39 But then that behavior, because people were kind of made to be aware of how convenient it is to pay using contactless and kind of new payment methods, they've been converted.
02:52 So there's no turning back.
02:54 And what we're seeing today is eight, nine out of 10 consumers in the UAE have been using or shifting to contactless and they're not gone back.
03:02 MasterCard is also working on ensuring the whole security and cybersecurity of the space.
03:07 Can you please tell us a little bit more on that side?
03:09 Yeah, that's a great question, because actually, if you think about it, as the digital economy expands and digital kind of payments develop, you're exposing more consumers, but also more merchants to more fraud risks.
03:22 So it's been our responsibility ever since we were a network, but not even more so because of how complex the payment matrix has become, to provide all these cybersecurity assets, these services, solutions to our partners.
03:38 That's why we've invested billions of dollars over the last few years in acquiring assets to help protect consumers and protect our partners in that space, but also government regulators and so on.
03:47 There's a lot of consumers and customers basically who are facing a lot of issues with fraudulent activities through their cards and whatnot.
03:56 I'm pretty sure that MasterCard is advancing in that area specifically with this.
04:02 Is there anything you can tell us about it?
04:03 Oh, absolutely.
04:04 I mean, I think this is a very challenging time that we live in.
04:09 As digital payments is accelerating multiples year on year, we have to be providing and we have to be assuring that the network continues to be trusted by its consumers.
04:19 So we've invested in technologies such as new data where you can help a bank tell from how the consumer is using the wallet, whether it is them or not.
04:29 So there's been some really huge advances in technology driven by AI, driven by pattern recognition technologies that allow us as participants in the financial services and digital payments industry to be able to really mitigate and reduce the risk.
04:44 Now, is it going to be zero?
04:45 Not today.
04:46 Is authorized frauds unfortunately a trend that we're seeing that's increasing and banks are worried about, especially in an era of what you call T plus zero, so instant real payment systems?
04:57 Absolutely.
04:58 So we should all be more cautious, more responsible and new technologies sometimes take time.
05:03 People sometimes get frustrated.
05:05 Why are these technologies taking forever to get implemented?
05:07 Because with great power comes great responsibility.
05:10 Exactly.
05:11 You cannot just roll out stuff and expose people to new threats.
05:15 So you have to be very mindful, be very careful, very cautious in your implementations and make sure that this very highly trusted environment of digital payments remains risk free.
05:25 Amazing.
05:26 Thank you, JK.
05:27 Thank you.
05:28 Thank you.
05:29 Thank you.
05:30 Thank you.
05:31 Thank you.
05:32 Thank you.
05:33 Thank you.