WEEKLY ROUNDUP - 31.01.2020
Your Friday fix for global fintech and payments news
This week has been another eventful time in the world of payments. Our weekly round-up brings you a dose of some of the latest news from the past seven days so you can keep an eye on all that’s shaping our world this week.
- 93% of mobile transactions blocked as fraudulent in 2019
- Europeans spend €4 trillion per year on payment cards
- 60% of millennials using point of sale credit finance services when shopping
“It is more than an invisible threat, it is an epidemic,” explains Dimitris Maniatis, CEO of mobile technology company, Upstream, which has this week released a report, stating that 93% of all mobile transactions across 20 countries were blocked as fraudulent in 2019. The report in question details how, last year, Upstream’s security anti-fraud platforms processed more than 1.71 billion transactions and blocked more than 1.6 billion, due to fraud. Not only is this a grave inconvenience and security nightmare for consumers on a global scale, but it is also costing the industry billions – losses to fraudulent online, mobile and in-app advertising last year alone cost $42 billion, a figure that will also likely to rise. Manitatis commented further, that: “Mobile ad fraud is a criminal enterprise on a massive scale” impacting consumers by “eating up their data allowance, bringing unwanted charges…and even targeting and collecting their personal data”. With such developments, increased mobile security should be seen as a necessity as we venture ever further into the 2020s.
According to a new report by RBR, Payment Cards Issuing and Acquiring Europe 2020, European payment cards expenditure has reached €4 trillion per year. The report showed that the growth is directly linked to increased card usage, perhaps not a surprising development, considering recent news that cash usage continues to decline, and customers are quickly adopting new alternative payment methods such as contactless and mobile based payments. The report found that in 2018, the UK, France and Germany spent the most on payment cards, with card payments in Greece growing sevenfold; due to greater card acceptance by merchants at the point of sale (POS). Eastern European markets like Ukraine, Romania and Hungary have also seen card expenditure more than double. Thomas Madden, who led the RBR report, stated that: “the increasing customer adoption of payment cards, as well as expanding acceptance networks across Europe, is helping drive the sustained growth seen in card expenditure”. While we can’t exactly predict the dizzying heights that card acceptance and expenditure might rise to in the coming years, one thing is for sure, the European card market keeps growing and it shows no sign of stopping anytime soon.
‘Buy now, pay later’ has transformed the way we pay. FinTech innovators like Compass Plus customer, Klarna, amongst other services like Clearpay and PayPal Credit are revolutionising the way consumers purchase goods, affording them the ease of being able to pay at a convenient time. According to a new report by Kearney, Credit uncrunched: why banks and retailers must develop more POS credit services, it has been found that of all demographics, unsurprisingly to some, millennials have adopted the trend with the most vigour with 67% using the service. Alongside millennials, 57% of Generation X have also used this type of service at checkout, with over 34% having used the service more than once. Sameer Pethe, Principal at Kearney, has commented that “retailers who understand their role in responsible lending can stand to benefit from offering ‘buy now, pay later’ credit services”, with retailers offering this service granting greater incentive to potential customers. While adoption of ‘buy now, pay later’ is still reasonably low at 41%, with greater merchant acceptance in the coming years, one can only expect this trend to develop.