Kount launches annually the Mobile Payments and Fraud Report. What are the 2017 highlights of this edition regarding the evolution of fraud in mobile payments?
One thing that is standing out now over years past is the fact that many more online merchants are realising that mobile fraud is different; it requires different tools and strategies to detect and deter, unlike traditional ecommerce fraud through browsers. More merchants are recognising that they need to pay attention to their fraud-fighting methods for both apps and mobile browsing.
A significant percentage of merchants cannot tell what type of device is transacting with them or what type of mobile device. This lack of insight leads to fraudsters breaking through payment systems undetected or detected too late. The importance of the mobile channel to overall revenue is growing, albeit slower than in years past, but how much merchants are relying on revenue from the mobile channel in the future is still a bit of a mystery.
Payment types are another area of confusion for merchants. While many new payment methods have been introduced including several new “wallets” merchants are at a loss in determining which payment methods are most important to their customers. Another uncovered bit of information is that half (50%) of merchants do not know whether their payment service provider offers special tools for managing mobile fraud.
What current issues are influencing the mobile channel? Have you identified a significant difference compared with 2016 results?
The issues have not changed that much, what merchants are doing about them has been where we see some changes in attitude and behaviour. For instance, more merchants are planning to add a complete fraud platform solution than merely adding more tools to help them minimise and manage mobile payment fraud.
Wallets are starting to drive more adoption as consumers look for an easier method to pay for their purchases. Some 22% of all merchants now support at least some wallets. Making it easy to pay makes it easy to choose a mobile device for shopping instead of just browsing. Adoption of mobile wallets is a current trend but how this trend will affect fraud is unclear to merchants across the board. There are mixed reviews as to whether merchants are feeling more secure with wallets as a payment method. Until that uncertainty is addressed, traditional payment methods like PayPal and credit/debit cards will remain the preferred method of payments via mobile.
There has been a jump in the number of merchants detecting when mobile devices are transacting with them, but unfortunately, 65% of merchants still cannot detect the type of device that is transacting with them. Having visibility into whether a device is an Xbox, a smart TV or an Android or iPhone device makes a big difference in buying behaviour, fraud patterns, and so on.
In this particular context, how are merchants managing both payments and fraud mitigation on mobile devices?
Some merchants are implementing fraud systems that operate side-by-side with their payment system. Others are looking for payment service providers (PSP) that offer a pre-integrated solution that works simultaneously when a payment goes for authorization. Unfortunately, 50% of merchants surveyed could not confirm whether their PSP offered special tools or services to help mitigate mobile fraud specifically.
What anti-fraud technology do you think has the biggest potential in the mobile commerce space?
According to the survey, more merchants are looking to add a complete fraud prevention and management platform than in years past. I think this is due to the rapid change in fraud, technology the fraudsters use, new technology to detect and prevent fraud, not to mention all the changes in the payments landscape.
This amount of change can be intimidating to even the most savvy online merchant. Having a platform, typically SaaS-based, makes it much easier to maintain an edge over the criminals, add new features and services that help merchants prevent fraudulent transactions, and allows merchants to minimise time spent on building and maintaining an in-house system.
This year you closed several deals with solution providers, like Chargebacks911 and WhitePages Pro, to help online merchants reduce fraud losses. Can you share the current results of those partnerships?
One thing is for sure, our collaboration with the premiere solution providers has given our customers several options in their fraud-fighting strategy. We want merchants to open the sales funnel as wide as they would like while maintaining the safety and security of a fraud prevention system that minimises risk. The partners we have chosen to integrate into our platform join us in our mission to boost sales and beat fraud.
Our customers have reported success at very high levels, whether they sell shippable goods or digital goods. We provide them an easy-to-use platform to detect fraud at all stages of the purchasing cycle, even after the transaction is complete.
Our partners provide deep insight into reducing chargebacks, false positive rates and manual reviews all while allowing more good transactions, from more legitimate customers from more places around the world than ever before.
About Donald Bush
Don joined Kount as the Director of Marketing in October 2010 and became Vice President of Marketing in December 2012. Prior to joining Kount, Don was the Director of Marketing at CradlePoint, a leading manufacturer of wireless routing solutions in the mobile broadband industry. Don has worked in several management roles within the technology segment for over 20 years with both hardware/software manufacturers and as a partner in two top technology-marketing agencies.
About Kount
Kount is an innovator of solutions for fraud and risk management. The companys “decision engine” platform is ideal for managing fraud in online/telephone channels that process payments and onboard new customers. Kount is committed to offering an end-to-end, single-source solution focused on speed, simplicity and ease of use.
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