In the world of the ‘anytime, anywhere’ consumer, it’s important for merchants to adopt a multi-channel approach to sales. Unfortunately, the threat of omni-channel fraud stands as a significant barrier for many retailers. The good news is that with the right tools, retailers can mitigate these risks.
Omni-channel payments refer to the ability of a merchant or retailer to “take payments in a variety of ways without a jarring difference in convenience, service or even branding,” Business.com says. That means that customers should have a consistent buying and payment experience, whether they are making a purchase in-store, or online; whether they are paying with cash, or ‘tapping’ their debit card; whether they are providing card details over the phone, or ordering off Amazon Alexa.
These various payment options fall under three main omni-channel sales categories:
- Brick2Click – where there is seamless integration between the offline (‘bricks’) and online (‘clicks’) store; this may include the customer buying online and collecting in-store.
- Device2Web – a device-centric payment method, where the customer can interact with the online store at multiple touchpoints, e.g. smartphones, tablets, or IoT devices.
- eAve2Web – where purchases are serviced via a third-party, such as Amazon, eBay or Groupon. This sales method can exist alongside either of the above methods.
It is not essential for a retailer to cater to every single payment possibility; however, the more choice and convenience you can offer a consumer, the more opportunities you have to complete a sale. Retailers are quickly cottoning on to this. Considering that £133 billion was spent online in the UK in last year, you can understand why. According to ACI Worldwide and Ovum’s 2017 Global Payments Insight Survey, 79% of retailers and merchants said omni-channel payments are key to creating seamless customer experiences. To address that, 55% of EMEA retailers and merchants say that are planning to invest in new payment capabilities within the next 18 to 24 months.
“Most retailers have moved away from seeing payments as purely transactional and now understand that payments are crucial to the overall customer experience and success of their businesses,” Andrew Quartermaine, ACI Worldwide’s Vice President SaaS Customer Management said.
However, despite growing understanding of the importance of omni-channel strategy, a whopping 87% of EMEA retailers say they have security concerns about adopting new payment capabilities. In addition, 65% of retailers worldwide do not believe they currently have adequate tools to support effective fraud management.
Certainly, their concerns are understandable. Fraud losses on UK-issued payment cards totalled £568 million in 2015, and of this, 70% was fraud in card-not-present payments, including mail-order, telephone, and online purchases. Unfortunately, as retailers offer customers more purchasing options, they also offer fraudsters more opportunities to hijack the sales process.
So, how can businesses keep up with demand for multiple customer touch-points, while protecting themselves from omni-channel fraud? It all comes down to data.
By effectively collecting and monitoring customer data, merchants can keep an eye on transactions which seem out of line with usual purchasing behaviours.
Like consumers, fraudsters operate across a number of channels, and their methods are fast-changing and constantly adapting to technological changes. That’s why it’s essential for retailers and merchants to employ omni-channel fraud management tools which are also smart, adaptive, and flexible.
Regardless of how you’re doing business (online, face-to-face, mobile, etc.), you’re protected with Verifi. To learn more about our solutions, please get in touch.