Predicted payments trends for 2023
Summary
Our lives are becoming increasingly digitised, as connected devices and services proliferate. Keeping pace with this rapidly evolving landscape is vital, argues Fime CEO Lionel Grosclaude, and 2023 promises a host of new use cases and innovations, as new technologies coming to market offer an enhanced user experience without compromising on security.
Innovative solutions such as SoftPOS are challenging traditional payment methods, while account-to-account payments have the potential to shake up the entire payments ecosystem.
One of the key trends for 2023 is the continued evolution of the ever-expanding fraud industry. Gone are the days when simple fraud-management strategies sufficed. An entire ecosystem now exists exclusively dedicated to buying, selling, and exploiting sensitive data.
Instances of fraud have increased 20% in the past year. But new authentication frameworks offer a workable compromise between strong security and seamless acceptance. Combining active and passive authentication can ensure that the payments flow is secure, while limiting the impact on customer experience.
Biometric authentication leads the way here. Using biometrics, especially for multi-factor authentication, can expedite and strengthen the authentication process. A good example is keystroke dynamics, a behavioural biometric modality that analyses how users type their passwords. This can serve as a multi-factor authenticator, as it tests both what the password is and how it is entered, eliminating the need for an extra step of authentication.
We may yet see passwords eliminated in future, but this is not expected anytime soon. So it makes sense to harness all available data to increase security and reduce friction.
Delegating power to merchants is also helping to enhance authentication processes. Lowering authentication friction is key to a seamless user experience. Merchants across Europe are investing in advanced authentication capabilities that allow them to process SCA-compliant transactions without redirecting consumers to a banking app or using a one-time passcode.
You can read more about Grosclaude’s 2023 trend predictions by clicking on the link below.