Your Friday fix for global fintech and payments news
This week’s news focus is on the European card market, with special focus on France and Belgium. We also take a look at biometric card market and the uptake in revenue due to the touch-free society we now live in, and how e-commerce and card-not-present fraud is once again on the rise.
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.
- Belgian and French card payments data show tough signs of recovery
- Fingerprint cards will generate $5bn in bank revenues by 2026
- Having exhausted Covid scams, criminals are returning to e-commerce fraud and malware attacks
According to monthly card volumes from STET, a European payments solution provider, the Belgian and France card payments markets have had a difficult start to 2021, with card volumes decreasing by 9.6% and 13.6% in France and Belgium respectively compared to the same time last year.
With COVID restrictions still in place and non-essential retail only just opening up in January in both countries, STET were not expecting card volume recovery to be smooth sailing.
Other countries in Europe saw tough restrictions in place over the holiday period, causing potential further problems for the European card industry.
According to analysts at Swiss bank UBS, biometric cards could soon hold a 15% stake in the card market. Successful pilots, reduced production costs, and the increase in a touch-free society due to COVID are just some of the reasons that UBS estimates fingerprint sensor cards will see an uptake in revenue of $5 billion by 2026.
UBS said: “In the past few years more than 23 pilots were reported with three commercial launches ongoing. In conclusion, despite the rise of mobile payment threat to the total cards volume, we believe biometric cards can fuel some growth within the payment cards market."
Data from Visa’s Biannual Payment Ecosystem Report show that, once again, the number of e-commerce fraud related incidents have seen a sharp increase. This is unsurprising due to the number of consumers making purchases online due in the last year. Research from Aite Group predicts the total loss of CNP fraud to be $7.9 billion in 2021, up from $7.2 billion in 2020.
Julie Conroy from Aite Group said: “There is a whole class of merchants that have had to contend with e-commerce and card-not-present transactions that never had to prior to the pandemic, so it’s no surprise that this type of fraud is rising.”