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High Incidence of Payments Data Theft is Driving Investment in Payments Technology

Payments Data Theft

One in five organizations has experienced payments data theft over the last 12 months per new benchmark data, “2018 Global Payments Insight Survey: Bill Pay Services,” from Ovum.

The good news is that more than 80 percent of these organizations have introduced a new security framework and 79 percent have reduced employee access to customer data. Moreover, more than 70 percent of organizations that have experienced theft of payments data intend to increase their investment in payments technology this year.  However, while better security frameworks and data access methods are critical, companies need to balance these with the consumer experience, trying not to introduce any additional friction into their interactions.

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Covering responses from executives at billing organizations such as consumer finance, healthcare and higher education, the research also revealed that across all industries, 36 percent of organizations believe they are at a greater risk of data breach than a year ago. In fact, 44 percent of respondents agreed with the view that: “My company would not invest in fraud solutions that add friction to the customer experience,” which is down from 57 percent a year ago.

Cloud Computing and Mobile Payments

The data also showed growing popularity of the cloud and the move to mobile billing. Over 70 percent of respondents expect to move more of their organizations’ payments infrastructure to the cloud in the future, an increase of nearly 20 percent from last year. In fact, there is broad agreement on the advantages of cloud, with 81 percent citing the ability to reduce total cost of ownership as a major attraction. In addition, the cloud offers enhanced levels of security since a cloud provider serving thousands of clients can invest more in payment security than most organizations can on their own.

Improved mobile services are the focus of enhancement to advance security and the consumer experience, with just under half (49%) of all respondents adding new capabilities for mobile-optimized electronic bills and 46 percent currently improving their ability to receive payments from a mobile-optimized website. In addition, 42 percent are looking at enabling the payment process to be triggered via SMS.

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Real-Time and Voice Payments

Looking toward the future of payments, executives plan to add new payment methods such as real-time and voice that will boost security as well as consumer experience.

More than two in five organizations have reported they are developing solutions that will use the new real-time payments infrastructure. Real-time payments provide consumers the speed they expect and provide additional authentication while offering a lower cost than other ways to pay. Between last year and this year, the proportion of organizations that expect immediate payments to deliver cost benefits increased from 48 percent to 82 percent.

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While still new, the potential for voice payments will continue to grow with nearly 30 percent of enterprises currently developing the capability for consumers to trigger these kinds of payments. A further 19 percent are interested in exploring this area in the future. As smart home devices become more pervasive, voice payments will play a larger role for these organizations seeking to meet consumer demands for simplicity and security.

This research, which focused on the billing and payment experience, is one part of a broader series of new payments research, which was conducted between December 2017 and January 2018.

 

To read the full report visit: https://www.aciworldwide.com/billpayinsights

See how executives plan to improve the customer experience and security. Register for a free webinar on Thursday, May 17 at 2 p.m. ET on Top 10 New Ways to pay