According to research conducted by payments provider Paysafe, 59% of Americans think fraud is an inevitable part of shopping online.
In addition, 58% of consumers surveyed told Paysafe they are willing to accept any security measures needed to eradicate fraud and 71% stated that they are open to engaging more secure payment processes such as two-factor authentication.
In contrast, only 39% of businesses in the U.S. believe their customers would favor tighter security, according to the Paysafe research, and 67% think longer verification processes increase their risk of losing customers. Only 12% of American consumers abandon online shopping carts due to payment security taking too long, Paysafe noted.
In balancing risk and revenue generation, 67% of businesses surveyed indicated that they want to increase customer sign-ups and transaction volumes by reducing risk thresholds for ID verification. But 76% also want to produce more effective verification measures to reduce fraudulent transactions. In the research, 47% of merchants said that more than 5% of their transactions are fraudulent. As such, eight out of 10 businesses expect to increase spending on fraud in the next 12 to 24 months, typically by at least 11%.
Todd Linden, CEO of Paysafe Payment Processing, North America, said, “For years consumers have had to overcome the apprehension that businesses know too much about them from shoe sizes to food preferences. But as the payment world evolves, it is this knowledge that will make individuals more secure. The evolution of big data will make payments smarter and easier, and help to redress the balance between security and convenience. Big data will be the ultimate key to tightening up security at point of sale, online and in brick and mortar environments.”