Recently, I sat down to answer three questions for “The Year of Payments – 2015: One Quarter in” for PYMNTS.com on the topic of mobile payments in regards to:
- How Q1 2015 is different than Q1 2014
- What’s the most significant development so far this year?
- If “Payments 2015” were a brand and had a tagline, what would it be and why?
A significant factor in shaping the next frontier in fraud management is the continued rapid growth in online and mobile payments as the preferred methods of doing business for many consumers. With more than a third of customers interacting with a single business in five or more channels and more than 85 percent of consumers using online or mobile to conduct business, the need for omnichannel fraud prevention becomes a requirement. These trends make mobile-device intelligence as important to the authentication process as traditional personally identifiable information.
As a result, the need to integrate device intelligence into the authentication process to associate a consumer to a known device is critical. Companies already are beginning to incorporate device intelligence into their authentication strategies. The ability to verify a customer through his or her device is a huge benefit to the overall customer experience and not only makes it easier for the customer to do business with you, but also adds an additional layer of validation. The challenge with any new emerging business or new technology is maintaining a frictionless customer experience foremost because fraudsters are always the early adopters.
Make sure to read our perspective paper to see why emerging channels call for advanced fraud identification techniques and what myself and other industry leaders had to say on the topic of mobile payments: