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PIN by SMS - A White Paper by SPA - December 2011

Smart payment association - article blog


In stark contrast to today’s ultra-connected online lifestyles, the primary method for distributing credit and debit card PIN codes to cardholders remains the postal service. It is slow, outdated, with inherent security weaknesses.


There is, however, an opportunity to change all this.


 12-11-06 WP PIN by SM Distribution Final Copie.pdf 



As detailed in this paper, PIN by SMS distribution offers the opportunity for card issuers to get PINs into the hands of their consumers faster, more cost effectively and more securely than ever before.


Today’s consumers will not wait. They can access their bank accounts online, download apps wherever and whenever they are, and manage their lives on the move. Having to wait 2 to 3 days for a PIN to come through the mail is something of an anachronism in the digital world.


PIN by SMS offers a wholly customer-centric solution to this problem – increasing loyalty and enabling an instant response to customer requests.


From a balance sheet perspective, getting the PIN to the cardholder with the minimum of delay increases the speed of card activations, and eliminates revenue leakage of unused and dormant cards. Models within the paper suggest issuers are able to gain additional revenues of up to and above 750,000 USD annually.


Security is also enhanced. SMS adds a crucial secondary distribution channel to the card issuance process – eliminating the risk of PIN theft.


And then there’s the high cost of conventional distribution – from the environmental wastage of paper-based PIN mailers, through to the financial burden of postal charges.


The technology is available and opportunities are immense. It is time to take PIN distribution into the digital age. This paper delivers all the information you need to make the smart choice.



 12-11-06 WP PIN by SM Distribution Final Copie.pdf