Your Friday fix for global fintech and payments news
This week’s payments news is focussed on consumer payment habits. Visa announced that it has processed an extra one billion contactless payments, Mastercard released research into the amount spent on e-commerce transactions in 2020, and Experian released information on how customer authentication preferences are changing.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- One billion additional touch-free Visa payments made as consumers embrace contactless commerce
- Mastercard Recovery Insights: E-commerce a Covid lifeline for retailers with additional $900 billion spent online globally
- Consumers no longer believe passwords are the most secure method for authentication
Visa has announced that it has processed an additional one billion touch-free payments in less than a year. The rapid increase is mainly due to 29 European countries increasing the contactless payment limit when the COVID-19 pandemic hit.
Visa’s research shows over 80% of in-store Visa payments now being touch-free. Of the additional one billion payments, 400 million were in the UK where further growth is expected once the UK contactless limit increased to £100 from £45.
Visa’s Chief Executive Officer, Europe, Charlotte Hogg, said: “The demand for touch-free payments indicates that contactless has become the norm for European consumers and retailers. Contactless payments are popular because they combine speed and convenience with security.”
According to the Mastercard Recovery Insights report, an additional $900 billion in e-commerce transactions was spent worldwide in 2020. This increase means that an estimated out of every £5 spent on retail, £1.50 was through e-commerce.
“While consumers were stuck at home, their dollars travelled far and wide thanks to e-commerce. This has significant implications, with the countries and companies that have prioritized digital continuing to reap the benefits. Our analysis shows that even the smallest businesses see gains when they shift to digital.” Said Bricklin Dwyer, Mastercard Chief Economist and Head of the Mastercard Economics Institute
According to research from information services company, Experian, the three most preferred options for authentication are: physical biometrics, (face recognition, fingerprint etc.), PIN codes sent to a mobile device and behavioural analytics (passively observed signals that require no effort from the consumer). This marks the first time in four years that passwords have not ranked as one of the top three methods of authenticating identity.
“Businesses must be able to properly identify their customers from fraudsters otherwise they are not only risking financial loss but also customer trust, which is critical for today’s digital consumer. There’s an opportunity for companies to modernize their authentication that doesn’t require heavy customer involvement and doesn’t take away from a seamless digital journey.” said Eric Haller, Experian’s EVP and General Manager of Identity, Fraud and DataLabs.