Frictionless payments threaten security for online merchants

Biometrics will help online retailers protect themselves from fraud – but maintaining customer experience at the same time may be a challenge.

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By Anna Fedorova

According to a report by Paysafe, 52% of small to medium-sized enterprises (SMEs) across the globe that operate online worry that the move to frictionless payments, such as transactions taking place via apps, is leaving them open to fraud and will have a negative impact on revenues.

The report, ‘Lost in transaction’, also found that in the UK, 66% of respondents believe they are being more aggressively targeted by fraudsters now than they were a year ago. 

It is not surprise, then, that 59% of e-commerce businesses consider security their top priority. 

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Oscar Nieboer,
Paysafe

But according to Paysafe Group’s chief marketing officer, Oscar Nieboer, online merchants are reluctant to make the necessary security changes. 

This is in part due to worries that longer authentication processes could scare away customers – a concern for 70% of respondents to the survey.

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