December 21, 2020
Digital payments are made every day now, but security issues are still a major cause for concern for many small businesses. A study of businesses conducted by the 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 shortage of 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 for quite some time now. The good news is, this is beginning to change, and high-quality products will soon be widespread.
Better Ways of Dealing with Fraud
Small businesses suffer the most from financial fraud. To make matters worse, the mechanisms through which businesses reclaim fraud-related losses have impacts on the institutions that provide banking and credit to these businesses. Insurance payouts, chargebacks 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 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 to a huge range of digital payment platforms and the financial security that they offer.
Improved Data Security
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 rollout and response to GDPR. Most recently, Forbes noted the business trend towards data assurance being king, and have advocated for businesses having dedicated specialists to monitor breaches. The drive for businesses to become more tech-savvy is likewise driving innovation in data security products. And most importantly, it’s creating capacity to deal with the rise of data breaches and other major security issues.
The Future of Security is Collaboration
The push for greater security for digital payments has resulted in more collaborative efforts. The most recent example is payments giant TAS USA developing security solutions with startup Super Processor. They in turn pair up with the new Mastercard CARD 3.0 IE system. This example shows how technologists are now 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 businesses. To that end, we invite you to collaborate with us.