PIN ONLINE: CONTACTLESS PAYMENT WILL EVOLVE


Among the technologies that are revolutionizing the world of payment is Pin Online. This is a system allowing contactless payments over 50 euros to be made. Recently appearing in France, this innovative technology means that the user no longer has to insert their bank card into a POS to pay for purchases. How does this Pin-based contactless payment solution work? What about its advantages and limitations? Big angle !

HOW DOES CONTACTLESS PAYMENT BY PIN ONLINE WORK?


Halfway between classic payment and “contactless” payment, Pin Online is a payment system with which the customer does not need to insert their bank card into an electronic payment terminal to carry out transactions. Today, to make a purchase of more than 50 euros in contactless mode, you must insert your bank card into a POS.
However, with the deployment of the “contactless +” functionality, the payment process for transactions over 50 euros has evolved. Like NFC payment with PayWish, Pin Online allows purchases to be paid in contactless mode, thanks to online verification of the PIN code with the card issuer. Concretely, for transactions over 50 euros, the customer will only have to bring their bank card closer to the TPE, then enter their confidential code.
If this functionality, which excludes the systematic insertion of a bank card in a TPE, is already operational in certain Parisian taxis, it is necessary to qualify. Indeed, in practice, with Pin Online, inserting the card into the TPE remains possible, at the customer's convenience. He can consider it if he does not wish to pay contactless, or if this functionality is not active on his card.

WHAT ARE THE ADVANTAGES OF PIN ONLINE?


The online PIN is an innovation with multiple advantages. In fact, this payment system will make it easier to check out. For merchants and customers alike, the payment process for items and services will be much smoother. The in-store customer experience will be improved.
Also, it must be said that Pin Online is a solution that offers more security. As bank cards are in the hands of customers, the risks of credential theft are clearly minimized. The PIN code entered is verified in real time by the customer's bank. As a merchant, this is a great way to secure your payments.
In addition to this, with the online PIN, bugs like debit dropout will be resolved. When they occur, simply enter the PIN code without inserting the bank card. In addition to making payments faster and smoother, the Pin Online functionality makes contactless payment widespread, regardless of the amount. With this innovation, the issuer is certain of being able to pay for their purchases in contactless mode, without having to re-do their payment.
If the French are already experiencing these contactless features with G7 Parisian taxis, the trend should become the norm. Also, for the moment, this system is only operational on bank cards operating on the Visa, Mastercard and CB network. However, in the near future, it should be generalized to all cards and payment terminals.
Moreover, in France, since mid-2023, Pin Online has been available on new TPEs put into service. For older VSEs, in 2024, updates will be made to certain terminals to integrate contactless functionalities. For other small businesses, it will be necessary to consider migrating to new equipment allowing payment via an online PIN code.

WHAT ARE THE CURRENT LIMITS TO THE USE OF CONTACLESS PAYMENT?


The European banking authority has defined the rules below to govern “contactless” payments within the European Union:
We see that there is no limit for making a “contactless” payment in Pin Online mode. However, under certain conditions, the implementation of strong authentication (PIN code for example) is required. This is particularly the case when you carry out more than 5 contactless transactions in a row, you will be asked to enter the PIN code even for an amount less than €50.
If you pay with your phone, strong authentication is carried out by your fingerprint. This explains that all payments made by your phone can be accepted by a payment terminal without needing to insert your bank card and enter your PIN code.
On the other hand, when you use your card to pay via Pin Online, you are never asked for your PIN code. This entry is only possible when the card is inserted into a payment terminal. You are then asked to enter the PIN code. The terminal checks the PIN code with the information encrypted in the inserted card. This verification method is called “Offline PIN” because the verification is carried out directly by the terminal.
As you will have understood, these are not in reality limits associated with contactless payments with Pin Online. On the contrary, they are measures aimed at guaranteeing the security of operations between merchants and customers.

PILOTS ARE UNDERWAY


Merchants have started to try this innovation of the online PIN. Thus, the Taxi G7 group offers this functionality to their merchants. Market Pay also offers this solution with PayWish. Customers are asked to enter their PIN code after a contactless payment of an amount exceeding 50 euros.

WHEN CAN WE EXPECT TO BENEFIT FROM IT?


To implement the Pin Online revolution, all players in the payment chain must be ready. For this, a schedule was imposed in France on all stakeholders. The goal is for the functionality to be available everywhere by the end of 2024, to meet the need for innovation in payment at points of sale.