Cultivating Consumer Trust

To get ahead in the competitive ecommerce landscape, merchants have invested hugely to provide a seamless and frictionless user experience, with speed and convenience the main objective. The success of brands such as Amazon and Uber, which lead the way in user experience, suggests that consumers have embraced frictionless, one-click payments.

However, there has been a lot of recent press reports about whether online businesses compromise the security of consumers   to improve user experience.

If so, are consumers aware of this trade-off? It also makes us question if we have now gone too far, and whether consumers would actually welcome and feel more positive towards a brand with more visible security measures.

Given the recent reports about increased levels of fraud across the likes of Amazon Prime, Uber, eBay and Vodafone, this debate has gained further attention. The rising fraud levels can be attributable to the ‘fragmented’ approach that the FinTech industry takes in dealing with fraud. As the industry innovates further, creating new technologies and solutions for consumers to purchase and pay with, it is also creating potential vulnerabilities which fraudsters can exploit.

Businesses are also becoming increasingly concerned about their exposure to a data breach, with 57% of UK companies now admitting they expect to fall victim.[1]

MYPINPAD is passionate about enabling strong authentication for digital payments and helping retailers, banks and other financial institutions improve their security solutions and best practices.

One key vulnerability is credit or debit card information, which hackers are able to gain access to through data breaches and then sell online to fraudsters, a common occurrence on the ‘dark web’.

However, what is less accessible to a hacker, is the cardholder PIN. Thanks to PCI, PINs are never stored, and hence have never been breached en masse. Introducing PIN verification for online transactions would add a layer of security, one which is not vulnerable to mass breach, extending a consumer proven, tried and tested, familiar process to digital channels. Utilising a smartphone device as part of online payments is the first step toward secure multi-factor authentication.

Solutions like MYPINPAD’s are already leading the way in multi-factor authentication by using the cardholder PIN for devices such as mobile phones and tablets; combining first class security practice, user experience and technology that empowers consumers.

[1] ITGovernance, 2016