CNP Expo: The State of Affairs in Payments
May 20, 2015
Despite new regulations and new technologies, $2.8 billion is going to be lost to fraud this year and that number is expected to double by 2018, according to experts speaking at the CNP Expo in Orlando, Fla.
More secure credit cards, which go into use in October to combat fraud at the physical point of sale likely will shift fraud, based on similar efforts in Europe and other markets around the world.
“There’s clear evidence there was a migration of that fraud to the card-not-present space,” said Chris Marchand, vice president of business development at Verifi. “There’s concerns about all the fraud that is happening.”
ApplePay has seen significant publicity—and some consumer interest—since its September 2014 launch, but the transition might not be smooth for merchants. Few of them have enabled ApplePay even though it comes with the imprimatur of the world’s most successful company, according to panelists
“If I’m a merchant, it may not be something I’m concerned about,” Neeraj Gupta, product manager for fraud prevention at Vantiv, told the audience. John Faherty, product manager at OmniPay, also noted the relatively small number of iPhone 6’s and said merchants might not see it as very beneficial until penetration of the new devices increases.
In addition to Apple Pay, panelists identified Visa Checkout and Bitcoin as new players, but agreed that consumers aren’t overly excited about any of the new services.
“We forget about the consumer perspective,” said Claude Clausing, vice president of Card Not Present for Elavon. “[Those technologies are] still clunky.”