Skip to main content

Fraud Detection & Prevention Secures Digital Payments

The digital payments arena is undergoing rapid change, owing to a combination of factors. Transactions are growing rapidly year-on-year as convenience improves, and regulatory changes help to drive adoption. Meanwhile, the scope of different payment types is increasing.

Traditionally, payments were made via Card Not Present (CNP) transactions, or through digital wallets such as PayPal. Presently, the wallet landscape has expanded dramatically since the early days of PayPal, while new pay-by-bank schemes such as SCT Inst in the EU, or Zelle in the U.S. market have created more choice for consumers.

Additionally, the banking world is becoming more open -- an API-driven world has created banking-as-a-service opportunities and enabled new financial service firms to enter the market as a result.

Digital Payments Market Development

According to the latest worldwide market study by Juniper Research, retailers across the globe are now forecast to lose $130 billion in digital CNP fraud between 2018 and 2023.

The study findings highlight that increasingly complex approaches by fraudsters, alongside retailers’ inertia in adapting to new fraud prevention requirements, would be key factors behind the increases in fraud transaction value.


Juniper's analyst claimed that as cybercriminals seek to monetize their knowledge to a wider, less tech-savvy audience, complex cross-channel fraud will become the ‘new normal’, with retailers ill-prepared to fight it.

Established point-of-sale (POS) vendors such as Verifone and Ingenico will therefore increasingly look to mPOS as an area for future growth, expanding their market reach to previously unaddressed markets.

"A layered Fraud Detection and Prevention (FDP) solution naturally helps to directly stop fraud, but it also offers major gains in terms of recovering potentially lost revenue through false positives. This is something about which retailers remain under-educated, and has allowed fraudsters to capitalize on relatively low FDP spend," said Steffen Sorrell, principal analyst at Juniper Research.

Outlook for FDP Applications Growth

Juniper found that the current retailer perception of FDP return on investment is hampering global FDP solutions spending. Juniper anticipates that digital payment companies will spend $9.6 billion annually on FDP solutions in 2023, although the bulk of growth over the forecast period is likely to be driven by financial institutions and payment service providers.

This situation is due to awareness of FDP benefits, as well as a requirement to deal with complex challenges such as open banking systems and instant payment mechanisms.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Credit Scoring Service Spending will Reach $44B

Credit scoring is a method that lenders use to predict the probability a borrower or counter-party will default on loans, or incur additional charges for repayment -- also known as measuring credit worthiness. The method is a key tool in making credit affordable for individuals and businesses. It links credit products to risk potential, connecting borrowers to secondary capital markets and increasing the amount of funds available. This securing process establishes risk predictability dependent on a number of factors, determined by financial indicators and other publicly available information reported by the credit bureaus. Credit Score Market Development According to the latest worldwide market study by Juniper Research, they now forecast credit scoring services will grow by 67 percent to $44 billion by 2028. Juniper anticipates that emerging markets will experience the greatest growth -- projecting the African & Middle Eastern region to grow by 117 percent over the forecast period