There will be significant changes in payment technology by the end of 2023, when Finland joins the other Nordic countries in using Online PIN technology. This will have implications for payment terminals, merchants, and customers.
Differences between Offline PIN and Online PIN technologies
Offline PIN is a method of cardholder identification that takes place between a payment card and a payment terminal. The PIN entered by the cardholder is verified by the card itself. The microchip in the card contains encrypted information about the PIN and the payment terminal uses this to check whether the PIN entered is correct.
Online PIN is a cardholder identification method where the PIN entered by the cardholder is verified in real-time by the payment terminal communicating with the issuer of the payment card, which checks the correctness of the PIN.
Advantages of online PIN technology
Introducing Online PIN in Finland will bring positive changes to the payment experience. It will harmonise the payment experience with the Nordic countries and much of Europe. Online PIN also facilitates local payments, as a local payment of more than €50 can be made by using Online PIN to identify the cardholder.
How will the switch to Online PIN affect payment terminals?
The move to Online PIN presents both challenges and opportunities for payment terminal vendors. They need to be ready to offer upgraded devices and meet increasing demands for security, speed, and compatibility.
Payment terminals supporting Online PIN will require upgrades to both firmware and card readers. This means that payment terminal vendors will have to offer new updates or even new devices that are compatible with Online PIN technology. This can increase costs and require technical expertise.
The introduction of Online PIN technology may require new certificates and approvals for payment terminals. Payment terminal vendors must ensure that the equipment and software they offer meets the necessary security and regulatory requirements before it can be deployed.
It will not be possible to upgrade some of the terminals currently in use to meet the Online PIN requirements. For these terminals, the only option is to purchase a new terminal.
Online PIN at Seitatech
All Seitatech payment terminals have supported Online PIN for a long time. The end of the year is expected to see an accelerated trade in payment terminals, as a large number of existing payment terminals on sale that support only Offline PIN will be discontinued. The Castles payment terminals sold by Seitatech will continue to work seamlessly after the renewal.