Fraud and Mobile are Key Challenges Facing 2012 Payments Industry, Finds Survey
Payment fraud and the rise of mobile will be the key industry challenges in 2012, according to a survey conducted by payments software provider Compass Plus at the international payment and digital security event Cartes. The survey took in the views of more than 50 respondents from the payments ecosystem including financial institutions, mobile operators, payment processors, digital security providers and the media.
The biggest issue for the payments industry today, according to 31% of respondents, is fraud, closely followed by the growth of NFC technology at 27%. The picture changes subtly as the industry moves into 2012, with the majority respondents expecting mobile and near field communication (NFC) payments to take centre stage. Fraud will, however, remain a significant concern. Respondents also cited the following as critical issues in 2012: the ‘dematerialisation’ of payments, the global economic crisis, as well as either an increase or decrease in regulation following the arrival of new payment players.
When asked about fraud, 29% of respondents consider Internet banking hacking poses the greatest threat in their region. Customer-not-present (CNP) fraud at 26% was also a concern. The two key measures that will help in the fight against fraud are consumer education (29%) and the deployment of advanced fraud protection systems (27%).
The projected growth of mobile payment and NFC technology delivered contrasting results. Respondents were polarised on growth of NFC technology. Twenty-nine percent of respondents expected NFC technology to reach mass adoption in just one to two years while 27% believed this will take more than four years. In contrast there was more agreement among industry professionals regarding mobile payments. 42% of respondents expect mobile payments would reach critical mass in two to three years.
“The industry is clearly concerned with not only how to deal with new innovations such as mobile and NFC, but also how to guard against fraud as new payment technologies sit side by side with existing ones,” said Maria Nottingham, global marketing director, Compass Plus. “The survey results point to a wider trend. The proliferation of new payment technologies and industry players is creating an increasingly complex and competitive industry environment. To be successful in such an environment we believe service providers need to deliver customised innovative payment services to market quickly and cost effectively without compromising security and reliability. We look forward to helping service providers meet these challenges in 2012 and beyond.”