Compass Plus Survey At CARTES Reveals Payment Fraud And The Rise NFC Payments As The Key Industry Challenges In 2012

Published on Nov 21, 2011

A survey conducted by global payments software provider Compass Plus at the international payment and digital security event CARTES has revealed that payment fraud and the rise of mobile will be the key industry challenges in 2012. The survey took in the views of more than fifty respondents from the payments ecosystem including financial institutions, mobile operators, payment processors, digital security providers and the media.

 

The biggest issue for the payments industry today, according to 31% of respondents, is fraud, closely followed by the growth of NFC technology at 27%. The picture changes subtly as we move into 2012 with the majority respondents expecting mobile and NFC payments to take centre stage. Fraud will, however, remain a significant concern. Respondents also cited the following as critical issues in 2012: the ‘dematerialization’ of payments, the global economic crisis as well as either an increase or decrease in regulation following the arrival of new payment players.

 

When asked about fraud 29% of respondents consider Internet banking hacking poses the greatest threat in their region. Customer not present fraud at 26% was also a concern. The two key measures that will help in the fight against fraud are consumer education (29%) and the deployment of advanced fraud protection systems (27%).

 

The projected growth of mobile payment and NFC technology delivered contrasting results. Respondents were polarised on growth of NFC technology. 29% of respondents expected NFC technology to reach mass adoption in just 1-2 years while 27% believed this will take more than four years. In contrast there was more agreement among industry professionals regarding mobile payments. 42% of respondents expect mobile payments would reach critical mass in 2-3 years.

 

“The industry is clearly concerned with not only how to deal with new innovations such as mobile and NFC, but also how to guard against fraud as new payment technologies sit side by side with existing ones,” commented Maria Nottingham, Global Marketing Director, Compass Plus. “The survey results point to a wider trend. The proliferation of new payment technologies and industry players is creating an increasingly complex and competitive industry environment. To be successful in such an environment we believe service providers need to deliver customised innovative payment services to market quickly and cost effectively without compromising security and reliability. We look forward to helping service providers meet these challenges in 2012 and beyond.”*

Great NFC Infographic from NFC Rumors

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U.S. Leads the World in Credit Card Fraud, states The Nilson Report

November 21, 2011 03:30 AM Eastern Time 

The Nilson Report: Global Credit Card Fraud Losses Increased 10.2% over 2009

CARPENTERIA, Calif.--(BUSINESS WIRE)--The U.S. currently accounts for 47% of global credit and debit card fraud even though it generates only 27% of the total volume of purchases and cash, according to Global Card Fraud, from a recent issue of The Nilson Report, a respected trade newsletter on the payments industry.

“Competition among U.S. issuers, which has resulted in the average cardholder having four credit cards in their wallet, makes any issuer reluctant to decline an authorization. The consumer will just pull out a competitor’s card”

Payment card fraud losses totaled $3.56 billion last year in the U.S. from all general purpose and private label, signature and PIN payment cards. “The U.S. has a disproportionate percentage of the global total losses for two reasons . . . U.S. banks have been slow to adopt newer technologies such as EMV chip cards, and issuers are reluctant to decline card authorization from merchants because they don’t want to alienate their cardholder,” said David Robertson, publisher of The Nilson Report.

“Competition among U.S. issuers, which has resulted in the average cardholder having four credit cards in their wallet, makes any issuer reluctant to decline an authorization. The consumer will just pull out a competitor’s card,” said Robertson.

Banking institutions in Europe, Latin America, the Middle East, Africa and Asia, however, have adopted stricter security procedures inherent in payment cards with computerized chips, as well as the use of dual factor and dynamic authentication (one-time passwords) for cards-not-present (CNP) transactions.

As a result, global card fraud worldwide as a percentage of total volume has actually decreased. In 2010, total fraud losses equaled 4.46¢ per $100 in total volume of purchases and cash, down from 4.71¢ per $100 in 2009. And, this amount has been steadily declining over a decade.

Total global fraud losses, at $7.60 billion, however, increased in 2010 by 10.2.% over the prior year, because the rate of spending is outpacing losses. The payment card industry is expected to continue to grow sales volume at a faster pace than thieves can compromise the system.

About The Nilson Report

The Nilson Report is a highly respected source of global news and analysis of the credit, debit and prepaid card industry. The subscription newsletter provides in-depth rankings and statistics on the current status of the industry, as well as company, personnel and product updates. Nilson Report Publisher, David Robertson, is a recognized expert in the field, and is a frequent speaker at industry conferences. Over 18,000 readers in 90 countries worldwide value The Nilson Report to track industry trends and market information.

Jollibee launches its online payment service with AsiaPay

Jollibee, the country’s largest and leading fast-food chain, launches its online payment service with AsiaPay, an electronic payment solution and technology provider in Asia and the company behind PesoPay, allowing Jollibee’s online delivery website to accept and collect credit card payments online.

November 21, 2011, Philippines – Jollibee Foods Corporation, the country’s largest fast-food chain, launches its online payment service with AsiaPay, an electronic payment solution and technology provider in Asia and the company behind PesoPay, to allow Jollibee’s online delivery website (www.jollibeedelivery.com) to accept and collect credit card payments online.

“AsiaPay’s industry experience combined with the robust PesoPay platform and ready-made shopping cart integration, made them our ideal partner for online payment processing,” said Sarwar Faruque, Project Manager – Digital Media Group of Jollibee Foods Corporation.

The integration of AsiaPay’s payment platform for the Philippine market, PesoPay, allows Jollibee to offer its customers to pay online using their credit cards with confidence and ease, therefore complementing Jollibee’s three-step ordering process. Additionally, PesoPay’s anti-fraud management tools will enable Jollibee to facilitate online payments securely, thereby detecting and preventing fraud before it happens.

“Our mission to provide secured and advanced online payment technologies to the market has been achieved with the successful launching of Jollibee’s online payment service for its online delivery website. Enabling Jollibee customers to make payments online, completes the whole electronic ordering cycle while adding value by providing security and ease of use. PesoPay is a powerful tool to all businesses regardless of nature and size, it is the only online payment service with fraud monitoring and other value-added features that are substantial to the security and productivity of online businesses,” comments Mr. Joseph Chan, CEO of AsiaPay.

The organic growth of AsiaPay is paving the way to more geographic and industry coverage as it starts to penetrate the Food and Beverage industry. AsiaPay currently has 11 offices in 9 countries servicing the Airlines, Hospitality, Bank / Financials, Retail, Non-profit Organizations, Telco, Insurance, Group Buying, and many other industries.

About AsiaPay

Founded in 2000, AsiaPay, a premier electronic payment solution and technology vendor and payment service provider, strives to bring advanced, secured, integrated, and cost-effective electronic payment processing solutions and services to banks and e-businesses in the worldwide market, covering international credit card, debit card and other prepaid card payments. AsiaPay is an accredited payment processor and payment gateway solution vendor for banks, certified IPSP for merchants, certified international 3D-Secure vendor for Visa, MasterCard, American Express, and JCB. AsiaPay offers its variety of award-winning payment solutions that are multi-currency, multi-lingual, multi-card, and multi-channel together with its advanced fraud detection and management solutions. Headquartered in Hong Kong, AsiaPay offers its professional e-payment solution consultancy and quality local service support across its other 9 offices in Asia including: Thailand, Philippines, Singapore, Malaysia, Mainland China (3), Taiwan and Vietnam. For more information, please visit www.asiapay.com.ph and www.pesopay.com.

About Jollibee Foods Corporation

Jollibee is a phenomenal success story: what began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus was born the company that revolutionized fast food in the Philippines.

Through the years it worked its way up to become the country’s leading fast food chain and in 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalization and laying the groundwork for sustained expansion locally and beyond the Philippines. Jollibee has grown exponentially on all aspects on operation. From a handful of stores 32 years ago, Jollibee now boasts of more than 700 stores and over 50 international stores.

Jollibee has dedicated its continuous success to the Filipinos who have been there from the very start.
Jollibee is so well-loved – that every time a new store opens, especially overseas, Filipinos always form long lines to the store. It is more than home for them. It is a stronghold of heritage and monument of Filipino victory.

For more information, please visit www.jollibee.com.ph.