Frictionless payments threaten security for online merchants
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Treasury

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. Some 65% admit they simply do not know how to balance security with an acceptable customer experience.

“This was despite nearly 80% of respondents confirming their customers were happy to accept improved security measures such as two-factor authentication,” Nieboer says.

Biometrics

With demand from customers growing and fraud becoming more sophisticated, online merchants cannot afford to ignore this threat and must look for innovative methods that combine security with a frictionless customer experience.

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