Note:This blog was written by an independent guest blogger.
Digital payments are the future of commerce, but security concerns have created a major barrier to their popularity. A study of businesses conducted by the influential PCI Security Standards Council found that 67% of respondents cited a lack of visible security options as a reason for not adopting a digital payments service. A paucity of viable security options, both in terms of product quality and the level of protection that can be offered, has been a stumbling block in the digital payments sector; however, industry indicators suggest that this is beginning to change and good quality products will soon be widespread.
Big businesses tackling fraud
Financial fraud directed at small businesses will have effects felt most acutely the business itself. However, the mechanisms through which businesses reclaim fraud-related losses have impacts on the institutions that provide banking and credit to these businesses. Insurance payouts, charge backs and voided credit transactions all have a significant overall impact on big financial institutions. According to the annual American Express Digital Payments Survey, 82% of businesses feel threatened by fraud via digital payments; as a result, big business has moved forward to provide bespoke security solutions, and have put their name forward for many digital payment platforms to enhance that security. Growing businesses looking towards digital payments can now cater for a huge range of digital payments platforms and the financial security that they offer.
An improving data climate
Front-end security services are the most crucial step in ensuring the viability of integrating digital payments. Promoting an overall culture that values customer private and financial data will promote the long term change that the payments needs to hold customer confidence. This is a factor well recognized, both by regulatory bodies and international governments, and has been exemplified by the roll-out and response to GDPR. Most recently, Forbes have noted the business trend towards data assurance being king, and have advocated for businesses having dedicated specialists to monitor breaches. The move of businesses to becoming more tech savvy is driving innovation in data security products, and crucially creating capacity to deal with the influx of data-related breaches and security complaints.
Future payments
All of this good work is culminating in collaborative efforts, the most recent of which has seen payments giant TAS USA develop security solutions with startup Super Processor. This venture is to pair with the potentially transformative Mastercard CARD 3.0 IE system. According to Bobs Guide, this is a clear signal of how technologists are combining their new and innovative products to the benefit of the customer and the wider industry.
With collaborative efforts will come better technology and better growth for all types of business. Digital payments are clearly the way forward in the super-mobile digital era. Making them safe is the key challenge of this.