CNP Expo Wednesday Keynotes: Of Marketplaces and Markets
May 20, 2015
The second full day of the CNP Expo featured a prominent e-commerce startup applying cutting-edge technology to a business that’s been around for centuries and a payments veteran trying to explain to a card-not-present audience the implications of a card-present technology.
Instacart, a San Francisco-based technology company enables online grocery ordering and delivery within an hour in 16 major U.S. cities. According to Nilam Ganenthiran, the company’s head of business development and strategy, Instacart expects that number to grow to 75 in the next 18 months.
Ganenthiran explained Instacart’s retailer marketplace model and told attendees at the Orlando, Fla. conference how retailers could apply the model to their businesses. He cautioned retailers that, if they want to sell through marketplaces as an e-commerce strategy to be mindful that the marketplace collects consumer data, to be sure the marketplace is as concerned about security as the retailer is and to remember the marketplace becomes an extension of their brand and to be protective of that.
Ganenthiran turned the stage over to Trent Voigt, CEO of JetPay, who reiterated some of the points made yesterday in one of the more popular breakout sessions. Despite the fact it is a technology aimed squarely at card-present fraud, once merchants begin accepting chip cards at their tills, EMV will figure significantly in the lives of e-commerce and mobile fraud executives as the fraud migrates from physical stores to online.
Voigt did say that ascribing all the blame of an increase in CNP fraud to EMV would be inaccurate. The explosive growth of online commerce would have caused a significant growth in fraud anyway. EMV, however, will not be helping, as merchants all over the world have found.
One way the payment industry in the U.K. and Europe controlled the rise in fraud was by mandating 3D Secure. U.S. merchants have balked at the technology because they think it negatively affects conversion, but Voigt predicts the various versions of 3D Secure will see a resurgence in the U.S., simply because it is so effective. He also warned companies that accept CNP transactions in their call center to beware. The next CNP fraud threat vector will be the phone.