Payment fraud continues to be a major area of concern for businesses and consumers alike in the wake of the Covid-19 pandemic. According to a new report from Paysafe, businesses have to go the extra mile to reassure customers that their systems are safe and secure during online transactions.
Data from the report shows that 55% of online businesses are worried about the increasing risk of fraudulent payment transactions. Many see it as a potential barrier for attracting more potential customers from shopping online. The report also reveals that 76% of businesses have noticed a change in the way consumers are making payments, with customers opting for more secure methods wherever possible.
Some 40% of the 1100 small to medium-sized businesses questioned for the report said they felt that customers were looking for more robust payment options before making a purchase. However, business owners reported that it was proving difficult to implement more secure processes while at the same time providing a smooth customer experience.
Commenting on the research, Danny Chazonoff, Chief Operating Officer at Paysafe, said: “Protecting ourselves from fraud has long been reported as a concern among businesses and consumers, but our research shows that security has become more of a priority than ever, and there are a few reasons for this.
The economic impact of COVID-19 has led to a natural desire from both consumers and businesses to protect their finances. Coupled with that, we know that criminal activity such as fraud historically rises during national and global crises, and this pandemic has been no exception.”
Paysafe also conducted research among 8,000 consumers in April of this year. The findings revealed that 34% of people wanted adequate protection against loss from fraud, while 32% said that keeping their financial data safe from fraudsters was a key factor on choosing their payment method.
Meanwhile, 51% stated that they would use any type of security measure if it ensured their purchase was secure. A further 25% said they’d be happy to put up with more inconvenience during a purchase rather than jeopordise the security of their financial data.
Chazonoff added: “We’re also seeing more consumers than ever shopping online, given shielding, lockdown restrictions and less desire to leave the house. The 18% of consumers who told us they’d shopped online for the first time following the initial lockdown may have concerns around trying new payment methods.
Other consumers who are perhaps already used to shopping online might be interacting with new businesses, which they’re unfamiliar with, affecting their willingness to share financial details. For online businesses which want to attract and retain customers from these two groups offering greater choice at the checkout will be essential.”