Hamburg-based secondary market research specialist yStats.com released a new report titled “Fraud and Security in Global Online Payments 2016”. The publication reveals the growing volume of online payment fraud around the world. According to yStats.com’s CEO and founder, Yücel Yelken, “Our research shows that security concerns affect the adoption of online and mobile payment methods.”
Card-not-present transactions are a major source of payment fraud worldwide. According to a forecast cited in the new report from yStats.com, global online payment fraud is growing at double-digit rates, with online retail contributing around two-thirds of the total volume. These developments spur the search for new and better ways to secure online and mobile payment transactions, resulting in multiple innovations among which biometric authentication is the current top highlight.
Security concerns affect the choice of online payment methods by consumers as well as their overall willingness to shop online, according to yStats.com’s research findings. In countries such as Germany and Spain, security is the aspect of payment methods most important to online shoppers, and also in the USA the majority of digital buyers choose security over speed for online payment transactions. Moreover, in Brazil, India and other countries concern over safety of financial information is among the top reasons preventing Internet users from shopping online.
Security is also key to the adoption of innovative payment methods, such as mobile payments. Data privacy and security were indicated as the top two criteria for evaluating new payment methods by consumers in France, Germany, the UK and the USA, as a 2015 survey cited in the yStats.com report shows. Worldwide, more than 50% of respondents had concerns about safety of their information when using mobile payment apps.
