Bi-Weekly Roundup 8/26: Latest Payments Industry News and Trends

This week’s roundup of news from the payment industry takes a look at the impact of digital transaction experiences on in-person retailers, new mobile commerce statistics, the latest news in chargebacks, and more.

Digital Tools Key To Helping Salons Grow Loyalty, Cut Payment Friction

In payments industry news, there has been a large focus on the “digital shift” that developed over the past year and a half when it comes to how consumers complete transactions. While consumers are now returning to in-person retailers, they are bringing those new digital preferences with them.

In their latest Seizing The Digital-First Retail Renaissance report, noted that it’s now essential for retailers to combine the digital convenience customers now expect with the in-person experiences they’re now returning to. A key statistic supporting this notion is that 57% percent of consumers indicated they chose to shop with certain merchants because those retailers offered the right combination of digital payment methods.

The report also noted that customers expect digital experiences to be available from in-person beauty retailers such as salons. Salon owners need to make the full customer journey convenient and frictionless to keep their customers satisfied - for example, by offering online appointment booking and contactless payments. Global Payments Integrated’s commerce enablement solutions can help businesses in these areas and more.

Too Soon to Gear-Up for the Holidays? Not When it Comes to Chargeback Management

Chargebacks experience a post-holiday spike each year between January and March, and next year’s “chargeback season.” In 2020, ecommerce sales increased 24% compared to 2019.

While consumers enjoy the convenience, remote commerce entails a higher chargeback risk. One survey found that a third of respondents in the US committed “friendly fraud” in 2020 by either claiming that a product was unsatisfactory or falsely claiming a purchase was never delivered to them.

While January 2022 may still seem far away, businesses should start preparing now for chargeback season. PaymentsJournal provides a list of questions businesses should ask themselves in order to help prevent chargebacks, such as “Are you proactive about fraud threats by keeping defenses up-to-date with new fraud tactics?” and “Are you applying lessons from past returns, complaints, and chargebacks to improve the customer experience?”

For more information on chargebacks and additional tips to prevent them, see our blog entry Managing Chargebacks: What ISVs Should Know.

New PYMNTS Data Show Voice-Enabled Commerce Is A Business Winner For 40 Pct Of Consumers

As digital offerings across the payments landscape continue to evolve, PYMNTS discovered that more than 41% of surveyed consumers would be “more likely to do business with a company that would let them use voice commands to manage money or payments.”

When looking at the age demographics, millennials and “bridge millennials” are the most likely to engage with businesses that offer voice assistance features. Over 60% of each of these age groups responded that they were either somewhat or much more likely to do business with firms that offer this form of payment technology.

Credential Stuffing Remains Fraudsters’ Favored Form of Attack, Says Arkose Labs

Digital Transactions analyzed a recent fraud trends report from Arkose Labs. The report found that across Arkose’s network, credential stuffing accounted for 285 million attacks during the first half of 2021. Digital Transactions defines credential stuffing as “a type of cyberattack that bombards a Web application with stolen username and password combinations to fraudulently gain access to, and take over, an account via login requests.”

The report also noted that credential stuffing attacks cost affected businesses $6 million per business per year on average, and nearly half of victimized businesses spend up to five hours remediating each incident of a compromised user account.

To learn more about different types of fraud and data breaches, as well as tips to help ISVs and their merchants prevent it, read Recognizing and Managing Payment Fraud.

Mobile commerce sales will double to $700+ billion by 2025: eMarketer

Morning Brew took a look at the recent rise in mobile commerce, which is buying goods using a mobile phone. They shared notable statistics from eMarketer and Deloitte, including:

  • Mobile commerce sales increased by 41.4% in 2020 and will grow another 15.2% this year, hitting $359.3 billion.
  • Mobile commerce is expected to almost double its share of annual US retail sales by 2025, to 10.4% - or $728+ billion.
  • During the pandemic, 56% of American consumers used apps or mobile websites to order food (up from 36%) and 51% ordered products for pickup (up from 31%).
  • A 2021 Deloitte survey shows that 70% of 2,000+ US teens and adults will continue these habits post-Covid.

Stay tuned for more payment news, and to stay up to date on the latest payment trends, subscribe to our blog.