NEWS


IBS Journal October 2017


07


Online cavemen costing SMEs £8.7 billion in lost sales, says Barclaycard


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espite SMEs now having an unprecedented range of tools available to help them meet customer demands, many are still missing out on boosting their bottom line by


not offering the technology shoppers expect at the check-out. A recet study by Barclaycard found that lack of payment technology online and in-store is costing small retailers £8.7 billion a year in lost sales.


The Barclaycard study revealed that a number of SMEs are failing to capitalise on modern payment technology to capture consumer attention:


• SME retailers estimate 1 in 10 (12%) of transactions are abandoned because shoppers can’t pay the way they want to.


• As many as 65% of SME retailers say they have lost customers because of a lack of modern payment technology, including contactless, online payments and mobile.


• One in two purchases of £30 and under are now made via contactless – demonstrating the desire from customers to pay this way.


• SMEs should lean on their payment providers who are available to support the third of small businesses who hold off on introducing new payment methods because of a lack of know-how.


• The average amount lost by retailers every time a consumer walks away from a transaction is £59.60.


Greg Liset, head of Small Business at Barclaycard, said: “Although September marked 10 years since Barclaycard first introduced contactless to the UK, our figures show that SMEs are losing sales by not adopting this increasingly popular payment technology. While it’s encouraging that many smaller retailers are becoming aware of the importance of new payment innovation, they need to turn their ambition into action to keep up with consumers both now and in the future.


“Making these changes needn’t be complicated or time- consuming – with support from their payment provider, SMEs can ensure they have the right solutions for their business, whatever technology they use, and satisfy the ever-growing group of tech- savvy, digitally-minded shoppers.”


Mastercard aims to prevent data breaches with new system


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astercard has announced the launch of its Early Detection System, a new service that provides banks with a unique advanced alert for high-risk cards and


accounts that are exposed in security incidents or data breaches.


According to its data, it can take as little as nine minutes for stolen card and account data to be used on the dark web. Just last month, 143 million identities were reported as compromised in one data breach.


Mastercard developed Early Detection System to help banks take action faster, and pre-empt more serious attacks. Predictive capabilities and a combination of internal and external data sources let the system determine if a card or account is at risk then sends an alert to the relevant bank, quantifying the risk level.


“Knowledge is power, and this service helps banks act significantly faster and with greater precision to stop potential


fraud before it occurs,” said Ajay Bhalla, president of enterprise risk and security at Mastercard.


“Our card issuers can now proactively target the fraudulent activity resulting from previously breached or hacked data, helping them reduce costs and maintain the best possible cardholder experience.”


Early Detection System is available to issuers globally and detects all types of fraud across all transaction channels. The system identifies everything from active criminal trading of account data, to identification of cards being tested prior to being used for fraud, to account data that appears at-risk but without sufficient evidence to declare an Account Data Compromise event.


Mastercard has invested in other technologies in the past in order to secure every transaction, such as EMV, tokenisation, physical and behavioural biometrics, and artificial intelligence.


www.ibsintelligence.com


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