<p class="text-node" id="neisjlb30"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/06/main-banner.webp" alt="Turn access control into your top revenue driver" title="" id="oyb1k4epd" width="100%" height="362">In today's interconnected world, our digital lives are a complex web of data and transactions. From online banking to managing business operations, we are constantly accessing and exchanging sensitive information. This raises a critical question: how do we ensure that only the right people have access to the right information at the right time? The answer lies in a foundational element of cybersecurity: Access Control.</p><p class="text-node" id="93dxz7mbm">M2P Fintech is at the forefront of building the secure financial infrastructure of tomorrow. Our core mission is to empower banks, fintechs, and businesses across more than 20 markets to rapidly deploy digital banking, lending, payment and other value-added solutions.</p><p class="text-node" id="lnvjd6rkh">A deep understanding of access control is essential for anyone building or using payment(card) solutions. This post will demystify the core models of access control, explore the critical challenges in modern payments, and show how advanced systems like M2P's own Access Control Server (ACS) turn security from a checkpoint into a revenue engine.</p><h2 class="heading-node" id="s5f3115vl">What is Access Control? The Gatekeeper of the Digital World</h2><p class="text-node" id="ek8cr35dq">At its core, access control is a security process for managing who is authorized to access corporate data and resources . It functions much like a digital gatekeeper, ensuring that every request for access is legitimate and permissible . This process is built on two key pillars:</p><ul class="list-node" id="j4tdc0psz"><li><p class="text-node" id="q2cblhjov"><strong>Authentication:</strong> This is the act of verifying a user's identity to ensure they are who they claim to be. Common methods include passwords, PINs, biometric scans, or security tokens.</p></li><li><p class="text-node" id="al6mdrgfw"><strong>Authorization:</strong> Once a user is authenticated, authorization determines the specific level of access they are granted. This dictates what data they can see and what actions they can perform.</p></li></ul><p class="text-node" id="8qiuiy20r">Together, these principles form the basis of a secure digital environment, protecting everything from personal files to critical enterprise systems and forming a key part of security standards like PCI-DSS.</p><h2 class="heading-node" id="plthedu2p">The Evolution of Access Control Models</h2><p class="text-node" id="zt21ye4kz">Over the years, several models have been developed to implement access control, each with its own strengths and ideal use cases.</p><ul class="list-node" id="noxxbslgd"><li><p class="text-node" id="ru9fk2tbl"><strong>Discretionary Access Control (DAC):</strong> In this flexible model, the owner of a resource has the discretion to decide who can access it. While simple, its decentralized nature can become a security risk in larger organizations.</p></li><li><p class="text-node" id="5ekk8tync"><strong>Mandatory Access Control (MAC):</strong> In stark contrast, the MAC model is highly restrictive and centrally managed. Access is granted based on security labels assigned to both users and resources, making it the model of choice for government and military organizations.</p></li><li><p class="text-node" id="en1qlezxr"><strong>Role-Based Access Control (RBAC):</strong> As the standard for most businesses, RBAC grants access based on a user's defined role within an organization (e.g., 'Sales Representative,' 'HR Manager'). This simplifies administration and enhances security through the Principle of Least Privilege.</p></li><li><p class="text-node" id="v1cgdf4cl"><strong>Attribute-Based Access Control (ABAC):</strong> Representing the next leap forward, ABAC is a highly granular and context-aware model that grants access by evaluating rules against the attributes of the user, the resource, the environment, and the requested action. By evaluating attributes like time of day, location, or device type in real-time, ABAC can make highly intelligent and dynamic access decisions.</p></li></ul><h2 class="heading-node" id="0e7z2w3dw">The Challenge: Balancing Security and Experience in CNP Payments</h2><p class="text-node" id="8saxbwnxg">The world of financial payments, particularly Card-Not-Present (CNP) transactions, perfectly illustrates why advanced, attribute-based access control is so critical. The convenience of online shopping has led to explosive growth in CNP payments; in the U.S., CNP debit card transaction volume grew at an <a class="link" href="https://www.federalreserve.gov/paymentsystems/files/debitfees_costs_2023.pdf" target="_blank">8.2% annual rate</a> between 2021 and 2023.</p><p class="text-node" id="0pz4xdvvo">However, this growth has been shadowed by a costly surge in fraud.</p><ul class="list-node" id="xsy0ge356"><li><p class="text-node" id="4wqb2dqit"><strong>Massive Financial Losses:</strong> In the U.S. alone, CNP fraud losses were projected to hit <a class="link" href="https://www.fraudpractice.com/post/cnp-fraud-losses-represent-nearly-three-fourths-of-total-card-payment-fraud-losses-in-the-us" target="_blank">$10.16 billion</a> in 2024, accounting for nearly three-quarters of all card payment fraud. Globally, online payment fraud losses could reach a staggering <a class="link" href="https://www.mastercard.com/global/en/news-and-trends/Insights/2025/362-billion-in-fraud-how-insights-can-help-reduce-losses-and-improve-the-digital-experience.html" target="_blank">$362 billion</a> by 2028.</p></li><li><p class="text-node" id="qnrhmzqld"><strong>High Merchant Costs:</strong> The impact on merchants extends beyond the initial loss. For every $1 of fraud, merchants can <a class="link" href="https://risk.lexisnexis.com/about-us/press-room/press-release/20220802-true-cost-of-fraud-study" target="_blank">lose up to $3.75</a> when factoring in chargebacks, fees, and operational costs.</p></li><li><p class="text-node" id="fdos9w3e8"><strong>Poor Customer Experience:</strong> Overly restrictive security can lead to "false declines," where legitimate transactions are mistakenly rejected, frustrating customers and leading to lost sales. The original 3-D Secure 1.0 protocol was notorious for this, using disruptive browser redirects that led to high cart abandonment rates.</p></li></ul><h2 class="heading-node" id="krg9qrmwm">The Solution: EMV 3-D Secure 2.x and M2P's Intelligent ACS</h2><p class="text-node" id="zzwfa0cj8">To combat this, the industry evolved to EMV 3-D Secure 2.x (3DS2), a paradigm shift in authentication that M2P's Access Control Server (ACS) is engineered to master.</p><h4 class="heading-node" id="nyo0xqa8z">A Leap Forward in Data and Intelligence</h4><p class="text-node" id="jw2qxrl3m">The most profound advancement of 3DS2 is its ability to exchange over <a class="link" href="https://www.mastercard.com/gateway/expertise/insights/emv-3ds-benefits.html" target="_blank">150 data points</a> between the merchant and the card issuer—a tenfold increase from the 15 data elements in the 1.0 version. This rich data includes device information, transaction history, shipping details, and other behavioral patterns.</p><p class="text-node" id="fkoevhcks">This massive data exchange is the engine behind the "frictionless flow," which is powered by sophisticated Risk-Based Authentication (RBA) engines. M2P's ACS is a real-world application of this intelligent, attribute-based security, designed to maximize both safety and sales.</p><h4 class="heading-node" id="scn84gutv">Risk-Based Authentication (RBA): ABAC in Action</h4><p class="text-node" id="07opzndrr">At the heart of our <a class="link" href="https://m2pfintech.com/acs/?utm_source=blg&amp;utm_medium=in-lnk&amp;utm_campaign=org" target="">ACS</a> is a powerful, hybrid risk-based authentication (RBA) engine that combines a configurable rules engine with AI and machine learning. This engine is a sophisticated form of ABAC that analyzes hundreds of data points from the 3DS2 protocol in real-time, with response times under 400 milliseconds.</p><ul class="list-node" id="g7ct8yhuy"><li><p class="text-node" id="n034ycyp2"><strong>Transaction Signals:</strong> The engine scrutinizes the payment context, including transaction history, merchant risk profile, transaction value, and purchase frequency.</p></li><li><p class="text-node" id="8e8lpmpfr"><strong>Device Signals:</strong> We utilize device fingerprinting and analyze data points like OS, screen size, IP reputation, and geolocation to recognize trusted devices and flag high-risk attempts.</p></li><li><p class="text-node" id="xv6oqza5j"><strong>Behavioral Signals with Transaction Behavioural Intelligence (TBI):</strong> Through our acquisition of Goals101, a leader in Transaction Behavioural Intelligence (TBI), our capabilities are significantly enhanced. The platform uses advanced AI/ML to provide deep insights into consumer transaction patterns, allowing our ACS to build detailed behavioral profiles, more accurately detect anomalies, and enable hyper-personalized experiences.</p></li></ul><p class="text-node" id="5dcviw0kx">Based on the real-time risk score, the ACS makes an instant, intelligent decision:</p><ul class="list-node" id="zlqgum5fi"><li><p class="text-node" id="m7u7x3aeg"><strong>Frictionless Flow (Low-Risk):</strong> For low-risk transactions, the payment is approved seamlessly without any cardholder interaction. Industry data shows that with RBA, over 90-95% of transactions can be processed this way, dramatically reducing cart abandonment.</p></li><li><p class="text-node" id="v3a6gu2s0"><strong>Challenge Flow (Medium/High-Risk):</strong> If attributes flag a potential risk, the ACS initiates a "step-up challenge" using multi-factor authentication (MFA). This ensures legitimate but unusual transactions can still be approved securely.</p></li><li><p class="text-node" id="9equk2ay4"><strong>Decline (High-Risk):</strong> In clear cases of fraud, the transaction is proactively declined.</p></li></ul><p class="text-node" id="wtl19b6i2">This intelligent approach also provides a crucial <strong>liability shift:</strong> for transactions authenticated through 3DS2, the financial liability for fraudulent chargebacks typically shifts from the merchant to the card-issuing bank.</p><h4 class="heading-node" id="67wb6k6zu">A Multi-Layered Approach to Step-Up Authentication</h4><p class="text-node" id="q7xagdzhw">When a challenge is necessary, our ACS employs a range of modern, user-friendly MFA methods:</p><ul class="list-node" id="iuph4dbww"><li><p class="text-node" id="r37zkfu1k"><strong>One-Time Passwords (OTP):</strong> Delivered via SMS and email.</p></li><li><p class="text-node" id="fhkvy6lqs"><strong>Biometric Verification:</strong> Seamless facial recognition and fingerprint scanning native to the user's device.</p></li><li><p class="text-node" id="30z6l7kle"><strong>Out-of-Band (OOB) Authentication:</strong> Secure push notifications ("swipe to pay") to a trusted, pre-registered banking app for approval.</p></li><li><p class="text-node" id="00mqtgph2"><strong>Soft Tokens:</strong> Application-generated codes for an added layer of security.</p></li></ul><h4 class="heading-node" id="cgudj3x1t">Built on a Bedrock of Modern Architecture and Compliance</h4><p class="text-node" id="qmhfvcaph">Our ACS is engineered from the ground up for performance, flexibility, and reliability.</p><ul class="list-node" id="ngnz4cl4f"><li><p class="text-node" id="05khhom6r"><strong>API-First Design:</strong> A 100% API-driven, microservices-based architecture allows for flexible integration and rapid deployment.</p></li><li><p class="text-node" id="qf9l89pqz"><strong>Cloud-Native Infrastructure:</strong> Fully cloud-hosted with built-in redundancy to ensure high availability and scalability for any transaction volume.</p></li><li><p class="text-node" id="va1dfufxe"><strong>EMV 3DS Compliance:</strong> The server is fully compliant with the latest EMV 3DS 2.X standards.</p></li><li><p class="text-node" id="7hqn9stgt"><strong>PCI Certified and Pre-Certified:</strong> Our ACS is compliant with PCI-DSS and PCI-3DS standards and comes pre-certified with major card networks like Visa, Mastercard, American Express, and RuPay, allowing partners to go live up to five times faster.</p></li></ul><h2 class="heading-node" id="hmx5b8isk">The M2P Impact: Quantifiable Business Improvements</h2><p class="text-node" id="gkmenswjn">By harnessing the power of EMV 3DS2, M2P's ACS delivers tangible results. A senior manager at major Bank reported a "significant improvement in our authentication success rate" and "higher customer satisfaction" after migrating to our platform. Another case study with a client in Mauritius highlighted a 90% faster merchant onboarding and a 60% reduction in operational inefficiency, demonstrating the platform's broad ecosystem benefits.</p><p class="text-node" id="0pgn7zlmc">These client experiences are reflective of the powerful industry-wide impact of this technology:</p><ul class="list-node" id="0bm6zan0t"><li><p class="text-node" id="1gp7j22f6">Checkout times reduced by 85%</p></li><li><p class="text-node" id="f7vj5dns1">Cart abandonment rates lowered by up to 70%</p></li><li><p class="text-node" id="ghdt6brho">95% of transactions approved straight away in a frictionless flow</p></li><li><p class="text-node" id="teps7mkk5">Fraud reduced by 40%</p></li></ul><h2 class="heading-node" id="n6rvt1wlt">Conclusion</h2><p class="text-node" id="boyrkumq3">Access control has evolved from simple Discretionary (DAC) and Mandatory (MAC) models to the business-standard Role-Based Access Control (RBAC) and now to the highly intelligent Attribute-Based Access Control (ABAC). In the high-stakes world of Card-Not-Present (CNP) payments—where fraud losses have already exceeded <a class="link" href="https://stripe.com/in/resources/more/what-is-card-not-present-fraud-what-businesses-need-to-know" target="_blank">$10 billion</a> annually in the U.S. alone—ABAC is not just a security measure, but a core revenue driver.</p><p class="text-node" id="fzx0atzog">As one of the largest Banking infrastructure company, M2P Fintech operationalizes ABAC through our Access Control Server (ACS), which is built on the EMV 3-D Secure 2.x protocol. This protocol enables the exchange of over 150 data points per transaction, a tenfold increase over its predecessor.</p><p class="text-node" id="2x45ggsfl">Our ACS uses a hybrid risk-based authentication (RBA) engine that combines a rules engine with AI, machine learning, and Transaction Behavioural Intelligence (TBI) to analyze these data points in real-time. This intelligent analysis enables a frictionless flow for over 95% of legitimate transactions, combating cart abandonment and false declines. For riskier scenarios, it triggers a multi-layered step-up challenge using methods like:</p><ul class="list-node" id="u0rtkwx60"><li><p class="text-node" id="4yiu1x7q3">OTP (SMS/email)</p></li><li><p class="text-node" id="d5e4qg29k">Biometric Verification (Face/Fingerprint)</p></li><li><p class="text-node" id="923f21hmf">Out-of-Band Authentication (Push notifications)</p></li></ul><p class="text-node" id="nbg66pwmt">This approach delivers significant, quantifiable results, including improved authentication success rates, higher customer satisfaction, and dramatic reductions in cart abandonment and fraud. Built on a 100% API-driven, cloud-native architecture and pre-certified for PCI-DSS, PCI-3DS, and major card networks, M2P's ACS empowers our partners to protect their customers while maximizing revenue.</p><p class="text-node" id="f1ov5ck52">Curious to see our Risk-Based Authentication in action? <a class="link" href="https://m2pfintech.com/contact-us/?utm_source=blg&amp;utm_medium=acs&amp;utm_campaign=org" target="">Request a personalized demo</a> of M2P's ACS.</p><p class="text-node" id="81qrifd68"><em>Follow us on&nbsp;</em><a class="link fui-Link ___1q1shib f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1s184ao f1mk8lai fnbmjn9 f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener"><em>LinkedIn</em></a><em>&nbsp;and&nbsp;</em><a class="link" href="https://twitter.com/m2pfintech" target="_blank"><em>Twitter</em></a><em>&nbsp;</em><span style="color: rgb(85, 85, 85);"><em>for insightful fintech bytes curated for curious minds like you.</em></span><br></p>

The Invisible Shield: How Smart ACS Boosts Payment Approvals

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Blog-Banner_Wearable-in-Banking-payment.webp" alt="M2P Fintech" title="" width="100%" height="383"><p class="text-node" id="ztlkyphsq" style="text-align: justify"></p><p class="text-node" id="hbu9b73an" style="text-align: justify">The global wearable market size is projected to reach USD 931.31 Billion by the end of 2030, and wearables are here to stay.</p><p class="text-node" id="haxhg0j36" style="text-align: justify">Not just in healthcare, retail, and telecom, but also in banking and payments. Changing customer priorities and fintech advancements accelerated the market for wearables in the pandemic era. With millennials, gen X, and gen Z consumers wanting secure, convenient, instantaneous transactions, contactless wearables are the way to go.</p><p class="text-node" id="e74d" style="text-align: justify">Projected to grow at a CAGR of 11.5%, the future of wearables is likely to evolve further as consumers and financial institutions transition into the cashless, digital universe. Some wearable payment devices have the potential to become a “one-stop-shop” for several services.</p><p class="text-node" id="3d8c" style="text-align: justify">Disney’s Magic Band for instance is a wearable that Disney Land provides its visitors. Designed in the form of a funky wristband, the magic band functions as an access key, a payment device, and a personalized tracker. And it is also compatible with diverse smartphones and technologies.</p><h2 class="heading-node" id="7ff3" style="text-align: justify"><strong>What are wearable payment devices?</strong></h2><p class="text-node" id="cxro0jqkv" style="text-align: justify">Wearable payment devices are apparel, gadgets, and accessories we use to make contactless payments. The most common types are smartwatches, belts, jackets, fitness trackers, and even rings. They use services like Apple Pay, Samsung Pay, and Google Pay to connect the device with the consumer’s bank account.</p><h2 class="heading-node" id="0774" style="text-align: justify"><strong>Top wearable payment devices in the market</strong></h2><h4 class="heading-node" id="peflro9so" style="text-align: justify"><strong>Apple Watch</strong></h4><p class="text-node" id="vt4va9bs4" style="text-align: justify">The Apple Watch is one of the most popular smartwatches on the market, and it features NFC (Near Field Communication) technology. This technology allows the watch to communicate with other NFC-enabled devices, such as smartphones, to exchange data, make mobile payments, and do other contactless transactions.</p><h4 class="heading-node" id="zefu7xngv" style="text-align: justify"><strong>Samsung Galaxy Watch 6 Classic</strong></h4><p class="text-node" id="tr7o6hwvt" style="text-align: justify">Samsung Galaxy Watch 6 Classic offers contactless payment services through Samsung Wallet. This smartwatch enables users to make contactless payments at stores that accept NFC-enabled transactions.</p><h4 class="heading-node" id="7zin33oqj" style="text-align: justify"><strong>7 Ring</strong></h4><p class="text-node" id="kgp9oixfs" style="text-align: justify"><a class="link" href="https://seven.ooo/">7 Ring</a> is India's most advanced form of making contactless payments, utilizing Near-Field Communication (NFC) technology. Co-certified by EMV, 7 Ring has the same security standards as the payment instruments used worldwide by leading banking networks.</p><p class="text-node" id="rpc0seonr" style="text-align: justify">7 Ring uses <a class="link" href="https://www.livquik.com/">LivQuik</a>&nbsp;(powered by M2P)&nbsp;as their wallet provider, which works seamlessly with a tap at the PoS terminal, enabling convenient payments without the need for a phone or Bluetooth connection.</p><h4 class="heading-node" id="vknjub99i" style="text-align: justify"><strong>Ringly</strong></h4><p class="text-node" id="14e2" style="text-align: justify">Ringly offers rings and bracelets that connects to your phone via Bluetooth. Partnering with MasterCard, they allow you to make contactless payments apart from tracking your activities. They allow you to make contactless payments with just a wave of your hand.</p><p class="text-node" id="f1a9" style="text-align: justify">Now we’ve seen only a sample of wearable devices. Belts, jackets, and even shoes are used as wearable payment devices today.</p><h2 class="heading-node" id="f558" style="text-align: justify"><strong>How do wearable payment devices work?</strong></h2><p class="text-node" id="zx7lxhc92" style="text-align: justify">To use a wearable payment device, say a smartwatch, the user needs to link the device to a credit card or bank account. Once the device is linked, the user can make payments by simply tapping the device against a payment terminal. The payment is then processed through the credit card or bank account that is linked to the device.</p><h2 class="heading-node" id="cb0d" style="text-align: justify"><strong>Wearable payment technologies</strong></h2><p class="text-node" id="psqu3se3b" style="text-align: justify">Wearable payment systems are quite commonly used in e-banking and payment platforms. They operate on technologies such as HCE, Barcode, Contactless Point of Sale, Radio Frequency Identification (RFID), and Near-field Communication (NFC) to enable payments and cash transfers.</p><h4 class="heading-node" id="8264" style="text-align: justify"><strong>Host Card Emulation (HCE)</strong></h4><p class="text-node" id="5c98" style="text-align: justify">Host Card Emulation (HCE) enables payments that are activated by NFC technology. ​​It allows a device to emulate the functionality of a smart card to provide contactless payment capabilities using the ISO/IEC 7816–4 APDU command set. It communicates with a reader and stores data in the same way that a smart card would. A key benefit of using HCE is that it does not require a physical smart card or a built-in NFC reader. And it can be used for loyalty programs and access control too.</p><h4 class="heading-node" id="387a" style="text-align: justify"><strong>Barcodes</strong></h4><p class="text-node" id="e90e" style="text-align: justify">Some wearables are encoded with scan-and-go application barcode scanners for payments. It allows the customer to check out quickly without conventional processes. Barcode technology offers several advantages in wearable devices. They are secure, can be read quickly and easily, and can store a large amount of data. Newer barcode standards, such as QR codes can be deeply encrypted to prevent unauthorized access.</p><h4 class="heading-node" id="aae0" style="text-align: justify"><strong>Contactless Point of Sale (CPOS)</strong></h4><p class="text-node" id="5380" style="text-align: justify">The contactless point of sale (CPOS) is a new technology that uses Radio Frequency Identification (RFID) technology to communicate with the POS terminal and make payments. The CPOS system is fast, convenient, and secure. You just hold your card near the POS terminal, and the payment will be processed automatically. It uses the latest encryption technology to protect personal information.</p><h4 class="heading-node" id="e897" style="text-align: justify"><strong>Radio Frequency Identification (RFID)</strong></h4><p class="text-node" id="6468" style="text-align: justify">RFID wearables such as rings, wristbands, and dongles comprise an embedded chip with an RFID tag. The tag is a unique identifier that an RFID reader can read. The reader can track the tag’s location or access wearer information. RFID-enabled wearables offer many advantages over traditional ID payment devices. They are more difficult to lose or misplace and can be read from a distance, making them ideal for tracking assets or people.</p><h4 class="heading-node" id="4a4c" style="text-align: justify"><strong>Near-field Communication (NFC)</strong></h4><p class="text-node" id="f65e" style="text-align: justify">NFC ​​ is a short-range wireless technology that enables two devices to communicate when they are near each other, typically no more than a few centimeters. It is a convenient way to share small amounts of data between devices and works great in wearable payment devices, such as smartwatches, fitness trackers, and clothing.</p><h2 class="heading-node" id="4re67ozcs" style="text-align: justify"><strong>Wearables, IoT, and Fintech</strong></h2><p class="text-node" id="cd7a" style="text-align: justify">As with many things to do with digital transformation, the pandemic pushed businesses to explore and invest in Point-of-Sale (POS) technology, making wearables more than just useful tools. Readily available and user-friendly in usage and navigation, payment apps such as Google Pay and Apple Wallets, have made it easy for all demographics to transition smoothly into wearable technology.</p><p class="text-node" id="6474" style="text-align: justify">In the current mobile climate, using the Internet of Things (IoT) in banking is the way to attract new customers and retain existing ones. Wearable payment devices and IoT helps the financial sector to gain deep customer insight and improve user experience. Banks implementing IoT have seen benefits in cost savings, higher efficiency in business processes, and better customer experience. They have also been able to build new revenue models.</p><p class="text-node" id="7c32" style="text-align: justify">There is no doubt that fintech needs wearables, as it opens up new opportunities to transform their businesses and remain strong contenders in the market. We see the increasing use of wearables and in a way, they may even replace mobile phones in the future.</p><h2 class="heading-node" id="51ef" style="text-align: justify"><strong>How wearables benefit banks and fintechs</strong></h2><h4 class="heading-node" id="2062" style="text-align: justify"><strong>Access to data</strong></h4><p class="text-node" id="b080" style="text-align: justify">Wearables provide banks access to voluminous data as they are worn by customers most of the time. Customer intelligence gained can be used to enhance experiences and personalize products and services. Wearables are critical to data extraction and analytics.</p><h4 class="heading-node" id="f3b5" style="text-align: justify"><strong>Personalization of customer service</strong></h4><p class="text-node" id="c318" style="text-align: justify">Financial institutions and fintechs today recognize the need to be customer centric. And data extracted from wearables have proven to personalize and optimize customer interactions. Wearables can help predict customer behavior through real-time data and target them with recommendations and personalized offers.</p><h4 class="heading-node" id="135f" style="text-align: justify"><strong>Omnichannel user experience</strong></h4><p class="text-node" id="354d" style="text-align: justify">A combination of IoT and wearables can make all the difference in omnichannel customer experience. Fintech and banks can gain a competitive edge with wearables, for example, using smartwatches to make ATM withdrawals and biometric-enabled transactions.</p><h4 class="heading-node" id="072a" style="text-align: justify"><strong>Risk assessment</strong></h4><p class="text-node" id="4956" style="text-align: justify">Banks and fintechs need to mitigate risk by assessing potential factors. Analyzing customer data extracted from wearables can help enhance risk management decisions on lending, or insurance, among many others.</p><h2 class="heading-node" id="661d" style="text-align: justify"><strong>Banking Wearables in India</strong></h2><p class="text-node" id="7985" style="text-align: justify">India is fast catching up in the wearables market, especially after RBI increased the limit for contactless transactions to Rs. 5000. Both SBI and Axis Bank have launched their wearables Titan Pay and Wear n’ Pay, respectively.</p><h4 class="heading-node" id="92aa" style="text-align: justify"><strong>Titan Pay</strong></h4><p class="text-node" id="4cc3" style="text-align: justify">Titan Pay is a wearable collaboration between Titan and SBI that offers watches to enable contactless payments. It comprises a mobile app that allows users to send and receive money instantly. Using the watch and the app, users can transact in multiple currencies, track spending, and even set up a budget.</p><h4 class="heading-node" id="8fae" style="text-align: justify"><strong>Wear n’ Pay</strong></h4><p class="text-node" id="f8bf" style="text-align: justify">Wear n’ Pay devices include accessories like key chains and watch loops from AXIS Bank. It allows you to pay for purchases by just swiping your wrist. The system uses a special wristband that you can wear while you shop. You simply swipe your wristband across the payment terminal to pay for your purchase.</p><h4 class="heading-node" id="94vghp82w" style="text-align: justify"><strong>Indus PayWear</strong></h4><p class="text-node" id="kpwxiieoa" style="text-align: justify">By enabling consumers to easily tokenize their IndusInd Bank credit or debit card onto a chip-enabled wearable device, Indus PayWear is poised to completely change the payment experience. This will do away with the requirement for a physical card or even a payment app for purchases and enable quick and safe tap-and-pay transactions at any contactless Point-of-Sale (PoS) terminal worldwide.</p><h2 class="heading-node" id="9h5ne3vh6" style="text-align: justify"><strong>Real-time adoption of Wearables</strong></h2><p class="text-node" id="i6rkgfzw0" style="text-align: justify">During the 2024 IPL, the <a class="link" href="https://www.npci.org.in/PDF/npci/press-releases/2024/NPCI-Press-Release-RuPay-Launches-Exclusive-On-The-Go-Contactless-Payment-Collectible-for-2024-TATA-IPL-Playoffs-and-Final.pdf">NPCI launched an NFC-enabled wristband</a> for payments and access to the playoffs and finals. As a part of the “RuPay On-the-Go” series, the wristband provides seamless access management during events and functions as a versatile contactless payment device post-event.</p><p class="text-node" id="yp34kcwfw" style="text-align: justify">This first-of-its-kind initiative links access management for live events and payments into one exclusive collectible for select attendees of the playoffs and finals.</p><h2 class="heading-node" id="6f11" style="text-align: justify"><strong>Conclusion</strong></h2><p class="text-node" id="f293" style="text-align: justify">The integration of wearable &amp; contactless payments is an emerging trend in the modern payment system. While <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payment</a> trends keep on changing, the need to provide the best consumer experience across the platform is always constant for Financial Institutions and Payment Service providers.</p><p class="text-node" id="7039" style="text-align: justify">At M2P, we provide the best customizable payment experiences for businesses. Using our end-to-end API stack, we ensure that modern innovations and technology are seamlessly integrated into your ecosystem. Our APIs enable channel management and limit management across PoS, contactless payments, ecommerce, and withdrawals on your payments platform.</p><p class="text-node" id="51f6" style="text-align: justify">Want to know more about integrating contactless payments and other customizable features on your payments platform?</p><p class="text-node" id="1179" style="text-align: justify">Write to us at&nbsp;<a class="link au lo" href="mailto:business@m2pfintech.com" target="_blank" rel="noopener ugc nofollow">business@m2pfintech.com</a>.</p><p class="text-node" id="xvbgf1cni" style="text-align: justify"><a class="link" href="https://m2pfintech.com/newsletter/"><strong><em>Subscribe</em></strong></a><strong><em>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.</em></strong></p><p class="text-node" id="59q1y9rhi" style="text-align: justify"><strong><em>Follow us on&nbsp;</em></strong><a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/"><strong><em>LinkedIn</em></strong></a><strong><em>&nbsp;and&nbsp;</em></strong><a class="link" href="https://twitter.com/m2pfintech"><strong><em>Twitter</em></strong></a><strong><em>&nbsp;for insightful fintech tales curated for curious minds like you.</em></strong></p>

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