Customers use digital payment method at a store. — Photo courtesy of Visa
Person-to-person payment methods will require a new approach to fraud prevention, Visa, the leading payment solution provider, has predicted.
“As consumers increasingly use person-to-person payment methods for speed and convenience, it cannot come at the expense of security. Financial institutions will need to think differently and collaborate with trusted partners in payment security to address the challenge,” the company said.
This is one of many issues that Visa mentioned in its 2020 vision about payment solutions. Visa said data breaches would force adoption of smarter and more dynamic security to protect data and manage fraud.
“Headline grabbing data breaches seem to be never ending. To combat this threat, there will be growth in financial institutions adopting tokens and updated EMV 3-D Secure (3DS) specifications globally,” the company said.
Visa explained that tokens replace consumer card information, such as the cardholder’s account number, with a unique set of values, which protects transactions when a card or shopper is not present.”
Meanwhile, 3DS is a messaging protocol encouraging simple consumer verification by allowing consumers to identify themselves with their card issuer when making online purchases without a physical card.
The other issue is that users will continue to be the weakest link.
“Fraudsters will continue to steal personal information such as bank account data. Organisations need to empower users with education and tools since they are often the first line of defence,” Visa advised.
In addition, stores and banks will use digital identities to deliver a better customer experience
As fraud threats increase, digital identity biometrics such as facial recognition, fingerprint scanners and voice recognition may mean the end of passwords.
Visa revealed that it is exploring the use of biometrics for payment verification to new mobile applications like digitally issued cards at the Tokyo 2020 Olympic and Paralympics Games.
Last but not least, Artificial Intelligence (AI) will be used in the battle between good and evil.
“AI will continue to introduce tremendous challenges due to its potential use by hackers. The challenge of AI will require a collective effort across industries to ensure it is used to deliver opportunities and improvements to society.”
“By drawing on lessons from the last decade, we can address future challenges and capitalise on opportunities stemming from our increasingly digitalised society,” the company said. — VNS