The payments industry is seeing major disruptions in fraud trends, securing online channels, the consumer shopping experience and mobility payments in transit, industry experts shared last week at Secure Technology Alliance’s 13th Annual Payments Summit. The Summit, held jointly with the U.S. Payments Forum Member Meeting, brought together hundreds of industry experts looking to find new ways to overcome challenges impacting the adoption, security and usability of emerging and developing payments technologies.
News release / Secure Technology Alliance
Globenewswire , March 09, 2020
Payments Summit 2020 Recap: Executives Explore Disruptions in Fraud Trends, Securing Online Channels and Mobility Payments in Transit
PRINCETON JUNCTION, N.J., March 09, 2020 (GLOBE NEWSWIRE) — The payments industry is seeing major disruptions in fraud trends, securing online channels, the consumer shopping experience and mobility payments in transit, industry experts shared last week at Secure Technology Alliance’s 13th Annual Payments Summit. The Summit, held jointly with the U.S. Payments Forum Member Meeting, brought together hundreds of industry experts looking to find new ways to overcome challenges impacting the adoption, security and usability of emerging and developing payments technologies.
Changing fraud trends and a focus on securing online channels
With counterfeit card fraud down 87% for merchants that have implemented chip technology, many in the industry are now shifting focus from protecting card data to protecting personally identifiable information (PII) in the digital space. This is because PII is poorly protected, often with insecure methods such as passwords, and can be easily monetized. This is especially a concern to consumers when linked to payment data.
Synthetic identity, where a new identity is created with false information, and account takeover are among the fastest-growing types of fraud today. One speaker shared that loss as a result of synthetic identity fraud costs more than $10,000 on average per account for financial institutions – more than double the average loss for an account due to other types of fraud.
Another speaker highlighted false declines of payment transactions as an additional challenge, attributing this to fear of fraud and limited available transaction data. False declines negatively impact the consumer experience, often causing them to shift preference to a different card or store for future purchases. EMV 3-D Secure (EMV 3DS) was cited as a possible solution as it provides more than 135 new data fields for merchants and issuers to help with risk decisioning while providing a seamless experience for the customer.
In addition to EMV 3DS, additional online authentication tools including FIDO authentication, biometrics and others are frequently being used to improve the state of online payments security. While many within the industry have questioned which solution will become prominent, speakers shared that these technologies are largely complementary – each one a piece of the online authentication puzzle.
Consumer experience is a key component to the future of payments
Consumer experience was another leading theme throughout the event, with discussions ranging from experiences in stores to online.
Speakers highlighted contactless payments as a leading technology to improve the customer experience in stores. Data shared from Phoenix Marketing International showed awareness of contactless cards increased from 81% in Q2 2019 to 84% in Q4 2019, the number of consumers with a contactless card increased from 23% to 26% last year, and 34% of contactless card users elected to pay with contactless within the past month.
To move adoption forward, speakers said that addressing consumer confusion about where and when to tap was a priority. One speaker highlighted a U.S. Payments Forum initiative that provides best practices for communicating about contactless acceptance and use in stores. Resources through the initiative include a white paper and webinar series, “Consumer Experience at the Point of Sale,” and the www.GetContactless.com website.
In the online environment, Secure Remote Commerce (SRC) was cited as a way the industry is looking to streamline the checkout experience while providing enhanced security. Speakers said the industry is at the beginning of the journey but expects the one-click consumer experience will appeal to consumers and will bring benefits to online merchants, such as reduced cart abandonment rates.
Is MaaS the Future of Transit?
In a world where consumers are doing everything through a single click or tap, this demand for convenience is now being seen in transit with payments paving the way, speakers said. The industry is evolving from closed-loop payment systems to open-loop, account-based contactless payment environment and speakers said Mobility-as-a-Service (MaaS) is the logical next step in this evolution.
Now in the early stages, MaaS typically consists of a consumer crafting a journey, accessing multiple modes of transportation through different applications. To realize its full potential, the consumer experience needs to be streamlined through an exchange of data and straightforward payment process.
Speakers shared a vision in which MaaS will create a dynamic, seamless experience with intelligent offerings that factors in things like traffic and ride schedules while considering the consumer’s preferences. Removing friction from the planning, booking and payment experiences, as well as the development of standards and open interfaces, are foundational to the success of this vision.
For continuing updates on the Secure Technology Alliance, visit www.securetechalliance.org and follow @SecureTechOrg on Twitter. For more information about the cross-industry U.S. Payments Forum and adoption of secure payments in the U.S., visit www.uspaymentsforum.org, and follow @USPaymentsForum.
TWEET THIS: The @SecureTechOrg #PaymentsSummit recap is out! Key themes included changing #fraud trends, securing online channels, #contactless payments and #MaaS. Read the recap here https://www.securetechalliance.org/payments-summit-2020-recap-executives-explore-disruptions-in-fraud-trends-securing-online-channels-and-mobility-payments-in-transit