The payment news we focus on this week covers payment fraud, digital B2B payments, and emerging payment methods.
Cybercriminals Continue to Commit Payment Fraud
eCommerce and digital payments are convenient, but they continue to be a target for cybercriminals. According to TotalRetail, cybercriminals are looking to take advantage of consumers and businesses by “compromising payment credentials, harvesting data, and attacking trusted online systems.”
Payment fraud trends include curbside pickup fraud, enumeration attacks (scalable and programmatic testing that attempts to guess payment details at checkout), and e-skimmers (malware that attacks payment platforms to get consumer information).
ISVs looking to integrate payments should work with a trusted payments processor that can help them stay PCI compliant. Here’s what ISVs need to know about recognizing and managing payment fraud.
Gaming and Gambling Industry Look to Instant Payments
PYMNTS reports that explosive growth in e-gaming and online gambling is fueling demand for instant payments.
The industry is looking to keep customers happy by avoiding manual and traditional payouts, which tend to be slow and full of logistical hurdles. But strong demand is leading to growing pains - companies find it challenging to navigate regulatory hurdles and cross-border payouts involving other currencies.
As we continue into the 2020s, we will keep an eye out for progress on the infrastructure that is needed to make real-time payments a reality, making instant payments the norm in the future.
Accounts Payable Automation Encourages Back-Office Digitization
The disruption in B2B payments is real. CPA Practice Advisor shared some eye-opening insights from MineralTree’s 2021 State of Accounts Payable Report.
While COVID accelerated digitization, B2B digital payments continue to lag. For example, 45% of respondents claim they still make more than half of their business payments via check because of ease of use. Even more surprising, 32% of respondents believe their current processes are fine as-is. However, some AP departments want to undergo a digital transformation, but barriers such as lack of budget or disagreement over potential ROI persist.
Digital B2B payments have benefits such as being more efficient and secure than paper checks. Visit our guide to digital B2B payments to learn more.
For Credit Cards, It’s Not Easy Being Green
Physical credit cards are convenient, but an unfortunate side effect is that they are not eco-friendly. Recycling old credit cards is a challenge, as they include chips, some of the plastic is not reusable, and consumers don’t know how to dispose of them properly. Making credit cards out of recycled plastic is relatively expensive without mass adoption.
With the rise of digital payments, will it make sense to ditch the card altogether? According to Payments Dive, “many companies issued digital-first cards to customers, with an option to add a physical card.”
Experts predict it will be years until consumers are ready to go digital-only. Until invisible payments become the norm, ISVs should stay on top of commerce trends by enabling their customers with contactless payments.
Consumers Are Coming Around To Cryptocurrency Payments
PYMNTS and BitPay recently published the Cryptocurrency Payments Playbook. One of their findings was that consumers believe digital currencies should be used to make everyday purchases despite current obstacles in acceptance.
They also discovered that both holders and non-holders perceive cryptocurrency payments as more secure than traditional credit cards or bank payments. They also claim to be “very” or “extremely” interested in using crypto to make online purchases or major purchases.
Still, crypto continues to have barriers in acceptance due to consumers not knowing enough about them, in addition to their tax implications. For a crash course in crypto, consider reading our blog on cryptocurrency payments.
We hope you find this roundup helpful in staying ahead of the latest payment trends! Keep informed on the payment industry by subscribing to our email newsletter or following us on social media.