New research conducted by a payments provider suggests the British are increasingly educating themselves in security matters, and rapidly so, with the GDPR around the corner and Brexit also not too far off.
The UK is making notable strivings in aligning itself with new rules and regulations taking effect next year. And if a recent survey by Paysafe is any indication, both businesses and customers are becoming well acquainted with cyber security.
According to the payment processor, 52 percent of UK consumers think fraud is an inevitable part of shopping online. 60 percent are willing to accept any security measures needed to eradicate fraud, and 65 percent are open to the introduction of more secure payment processes such as two-factor authentication (TFA), contradicting the belief that online shoppers value convenience over security.
In fact, the results from Paysafe’s survey seem to completely invalidate findings from a similar survey conducted by Visa Inc. earlier this year.
Analyzing the spending habits of 1,000 UK shoppers, Visa Inc. reported in August that as many as 72% of online shoppers abandoned their carts mid-purchase. The respondents cited two main reasons: 1) fear of having their credentials stolen, and 2) the buying process was too tedious.
But going by the Paysafe survey, this is not at all the case. What really drives one to abandon their shopping cart, according to 43 percent of respondents, is hidden transaction fees and delivery charges. Only 1 in 10 consumers said they abandon online shopping carts due to payment security taking too long.
That’s two very contrasting sets of results by any measurement!
Furthermore, the report mentions that almost a quarter of consumers reported experiencing credit card fraud in the last year, with one in five receiving no reimbursement – definitely a motivating factor to ask for tighter security.
Other findings include:
- 32 percent of UK businesses believe their customers would favour tighter security
- 59 percent think longer verification processes increase their risk of losing customers (which, apparently, isn’t the case)
- 69 percent of businesses want to increase customer sign-ups and transaction volumes by reducing risk thresholds for ID verification
- 78 percent also want to produce more effective verification measures to reduce fraudulent transactions
- 42 percent of merchants say that over 5 percent of their transactions are fraudulent
- 8 out of 10 businesses expect to increase spend on fraud by at least 10 percent in the next year
- 40% of UK businesses would like to see a decline in payment by credit and debit cards
- credit cards are the most vulnerable to fraud according to 54 percent of respondents, followed by debit cards (45 percent) and then cheques (36 percent)
- A quarter of businesses have plans to introduce voice-activated systems in the next 24 months
- 1 in 5 have embraced biometric payment
- 14 percent are looking to introduce cryptocurrencies
- 26 percent are planning to introduce mobile wallets.
- Consumer-wise, 1 in four 4 a mobile wallet, 1 in 6 has used biometric and voice activated systems, and 12 percent are already using cryptocurrencies for payments
“In many ways it is surprising to see such a consumer focus on security features rather than more convenient checkout processes,” said Andrea Dunlop, CEO Acquiring and Card Solutions, Paysafe. However, it’s clear that protection against fraud is top of mind, and merchants will need to focus on delivering the right balance of fraud protection and frictionless experience.”