A leading high street bank has described the secure electronic transaction (Set) standard to protect credit cards on the Internet as 'a technically elegant solution, but a logistical nightmare', writes Jan Howells.
Barclays Bank emerging markets head Roger Alexander said banks waiting for Set to solve their online banking problems should forget it.
Alexander told delegates at the IDC ecommerce forum in Monte Carlo this week that Set is proving expensive to develop and support, while interoperability is a challenge. 'Set is likely to have a short life,' he predicted.
This is the primary reason why Visa and Mastercard are looking for token-based solutions, he claimed. The threat of fraud also has financial institutions 'running scared' from the Internet. 'They have no control,' he said.
Some US retailers are refusing to sell to overseas customers because they cannot verify their addresses and are worried about duties and customer service, according to Alexander.
The biggest concern for banks right now is security, and finding ways of adding value for consumers.
Alexander believes that secure Internet trading systems can be built, but said that banks have to experiment and get their hands dirty.
'The chance of success gets less day by day. The further down the road, the harder it is to change the business model,' he said.
From Computing, 17 June 1999
Some parts of Atacama have not received rainfall for 500 years - but a sudden deluge of water upset the Desert's delicate biological balance
Spitzer Space Telescope could not spot Oumuamua, suggesting that it is actually pretty small
Greenland crater one of the 25 largest impact craters on Earth
This long-sought progenitor star was identified in an image captured by Hubble in 2007