Report: Payments Security Driving IT Investment for Merchants, Banks
April 28, 2016
Security is the biggest factor driving additional investment in corporate IT environments, and especially so for merchants, according to a new survey from payment processor ACI Worldwide. In its 2016 Global Payments Insight Study , ACI and research partner Ovum found 72 percent of merchants, banks and billing organizations cited security as a top concern when considering technology investment. Merchants alone were even more worried about security, with 77 percent indicating it as a primary driver of new payment investment. The survey also found that nearly 60 percent of merchants were concerned or very concerned about e-commerce fraud.
Reputational damage from data breaches, customer accounts being taken over and potential fines and costs associated with excessive chargebacks are some of the fears driving merchants to spend on security and fraud prevention, according to the report.
“Security will always be a critical consideration for merchants, and the changing nature of technology means the challenges and solutions facing retailers are continually evolving,” David Bannister, principal analyst for Ovum’s financial services technology practice and the report’s author, wrote. “The U.S. push into EMV is likely to drive up e-commerce and card-not-present fraud, much as it has in other EMV regions. New technologies such as point-to-point encryption and tokenization are creating new opportunities to secure sensitive consumer data and limit retailer exposure to risk. Regardless of how fraud develops, protecting consumers will remain the top priority.”