Five methods the digital payments landscape changes in 2021

Although time seemed to stand still in many ways through the pandemic, in the areas such as digital payments change was accelerated, with a long lasting effect on consumer behaviour, fraud patterns and a have to mitigate risk. A number of these changes will carry on into 2021 and beyond. Moreover, the activities of 2020 will accelerate innovation and force corporations to understand from their mistakes to make sure they are not repeated.

Listed below are my five predictions as to the way the digital payments landscape will change this year:

According to Visa’s client security study, on an average, nearly 60 % of consumers surveyed in UAE, Saudi, Egypt and Kuwait explained they will continue steadily to use contactless obligations more in-store even following the pandemic, even though over 50 per cent said they will continue steadily to opt paying on line using cards or digital wallets, instead of cash-on-delivery.

This shift in consumer behaviour will drive merchants to innovate to meet up changing customer preferences. Investments will include developing new methods to onboard clients and accept payments on the net, in-app, contactless and through IoT gadgets (such as for example wearables, in-car, good speakers, smart appliances). They'll be rewarded through different customer acquisitions, existing customer retention and a rise in sales.

But as merchants move online, so can be fraudsters. Payment reliability is difficult rather than everyone gets the expertise to do it very well. Merchants should revise their fraud prevention ways of support omnichannel commerce and if in-house expertise is not available, merchants should switch to proven, reputable companions.

Accelerated by Covid-19, demand for dynamic security solutions that help merchants ensure their buyers engage in safe online shopping practices will be increasing. A Visa consumer reliability study revealed that almost two-thirds of buyers in the UAE (66 %) and Saudi Arabia (70 per cent) would like a convenient authentication process that doesn’t need them to enter a one-time-passcode (OTP) for standard and recurrent transactions. In the same way, for 59 % of customers in Kuwait and 88 % in Egypt, an authentication method that doesn’t require them to enter an OTP was considered to be more convenient.

A growing number of central banking institutions and FinTechs are challenging tradition and exploring fresh and faster methods to send funds, settle payments and show information. Real-time repayments, digital currency and available banking support creativity that matches the expectations of digitally-savvy buyers and will help travel digital commerce for many years to come. However, faster payments start opportunities for more rapidly fraud and the posting of customer information will need to have data privacy at heart.

FinTechs and central banking institutions have to have mechanisms in location to spot atypical habits that can be an indicator of fraud. It is also important that the principles of wide open banking and the sharing of data is employed responsibly and ethically across all items, services and technology. 2021 will dsicover payment volumes instantly payments continue steadily to grow, digital currencies continue steadily to become mainstream, client and data personal privacy at the forefront of several discussions and sector players working together to solve new vulnerabilities.

Globally, fraud activities spiked during the first phase of the pandemic. For instance, in the US, government benefits designed for vulnerable citizens affected by the pandemic were targeted by fraudsters. By using stolen identities to apply for benefits, fraudsters could actually effectively siphon aside the money making fewer funds available to individuals who wanted them the most.

If government agencies want in order to avoid further losses, they will have to revisit their processes and technologies used to aid the verification of eligibility and distribution of benefits. Strengthening authentication functions to better determine government benefit eligibility is a priority in 2021.

The move from passwords and knowledge-based authentication will accelerate with adoption of strong customer authentication standards like FIDO (Fast ID Online, a protocol now available for all major browsers and cellular devices).

Plans for federal government and bank-led electronic identity schemes (e-ID) will progress along with trust frameworks and regulation to inform how various parties may interact. Accelerated by Covid-19, demand for devices that help banks and merchants to digitally verify consumer identification will grow. Relying celebrations who cannot manage identities will effectively become targets for fraud.