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How does this work in practice?

When using a card linked to the app online the user needs to check the app to find out what the dynamic CVV is? (which the bank then validates at authorisation time)

If true presumably that means that the consumer has to have their mobile and a data connection in order to make online purchases with the card? Appreciate that the majority of the time that will be the case but I do wonder whether lost transactions when its not (e.g. phone doesnt have internet transaction) would make up for the fraud savings

haha yes I was going to say the same - unless he is talking about other non card types of payment enabled by NFC technology overall but I doubt it as there is no specific reason for them to take off now compared to in the past 5 years

Any thoughts on why it is a different story in the UK? https://www.finextra.com/news/fullstory.aspx?newsitemid=27850

This seems very high - do you have a link to the original research? Is this just an online poll? I would be surprised if half of 18-30 year olds own a wearable that enable any banking transactions?

Well I suppose offering consumers more ways to pay is still better for them if it encourages more business (or makes for happier customers). I guess its unclear whether that theverge arcticle really knows whats going on but it does say no loyalty integration. If that is the case then I would guess they are just upgrading to EMV standard contactless payment and just calling it ApplePay acceptance?

Actually from looking a little further it does seem to just be that Starbucks US are adopting contactless in order to take ApplePay - this article refers specifically that there is no linkage to the loyalty system (which is a shame!). To me though it kind of makes sense that there is no link between the systems - I believe Starbucks loyalty is in exchange for they payment being off their prepaid card whereas ApplePay is running off normal card payment rails - Starbucks wouldnt really want people to move off.

http://www.theverge.com/2015/10/8/9483425/apple-pay-vp-starbucks-will-soon-accept-apple-pay

I am guessing this is focusing on the US market as ApplePay is already accepted in Starbucks in the UK (as it is as anywhere that supports NFC)?

I like the no-charging and no-pairing aspect of this. I guess it is a virtual prepaid card but in ring form factor? In that case is it like Barclaycard bpayband but just the form factor is different? (other than the further configurability in the video such as transmitting contact details)

Thanks Andrei and thanks for the research - I do have one question though - even for complex products (e.g. mortgages) where I agree most customers will want to go and discuss in person with bank staff, do you not think the 'initial' part of the search for the product will actually be online/via a comparison site? Though I did go and see a bank in person when getting a mortgage, I only went to visit the 'winning'  bank (e.g. had the best product). Currently my relationship with the bank is pretty much irrelevant to me when deciding who to go to, just the terms on their products. I see the future of bank offerings being in more personally tailored products (where banks can capitalise on a relationship with an individual and having a physical location would be part of that). Thanks, James

Haha I wasn't meaning to tow the party line, was just meaning to point out its another thing in the consideration of 3DS on top of Stripes FAQ. Personally I am no fan of 3DS however the 'passive' 3DS does not intercede on the UX as much (it only challenges if it considers it risky)