Research and Markets has added a Javelin Strategy & Research report on digital payment authentication to its roster of offerings. Entitled “Online And Mobile Retail Payments Authentication: Preventing Fraud in the Age of Data Breaches and Malware”, the report suggests that advancing security in physical payments will push fraud into the digital sphere, where sophisticated authentication will be increasingly in demand accordingly.
The report, first issued in 2013, helps to illustrate that online retail payments have been on the rise for some time, with transactions reaching 7.4 percent of the retail market even back in 2012. Now, with America’s payments industry transitioning to EMV (also known as ‘chip and PIN’) security, fraud at the POS can be expected to take a sharp downturn over the next couple of years, while fraud in online and mobile payments is likely to rise.
Accordingly, older online security mechanisms such as passwords are becoming increasingly ineffective as online fraud evolves; meanwhile, newer security technologies are on the rise, including (according to a report synopsis) “out-of-band one-time passwords, biometrics, and technologies using non-intrusive back-end data.”
This is already increasingly apparent in the rise of mPayment platforms, most of which employ biometric authentication and tokenization of user data. It’s also increasingly on the rise in the world of eCommerce, with newer hardware featuring built-in biometric scanners that could be used to authenticate payments through online merchants. Javelin’s early predictions were clearly prescient, and these trends are likely to continue going forward.