Barriers to adoption of e commerce today

Author: panfiloff Date of post: 20.06.2017

BI Intelligence This story was delivered to BI Intelligence " Payments Briefing " subscribers. To learn more and subscribe, please click here. Concerns about data and information security remain a barrier to online shopping, according to new data from PayPal. But in order to continue growing their e-commerce volume, merchants and payment providers will need to work together to find a solution.

To solve the card fraud problem across in-store, online, and mobile payments, payment companies and merchants are implementing new payment protocols that could finally help mitigate fraud. John Heggestuen, senior research analyst for BI Intelligence , Business Insider's premium research service, has compiled a detailed report on payment security that looks at how the dynamics of fraud are shifting across in-store and online channels and explains the top new types of security that are gaining traction across each of these channels, including on Apple Pay.

The choice is yours. You are using an outdated version of Internet Explorer.

Barriers to E-Commerce Adoption in SMEs: A Comparison of the Perception of Barriers in a Developed and a Developing Country: Business IS&T Book Chapter | IGI Global

For security reasons you should upgrade your browser. Please go to Windows Updates and install the latest version. Trending Tech Finance Politics Strategy Lifestyle Sports Video All. You have successfully emailed the post. Security issues are a barrier to e-commerce adoption. E-commerce fraud is rising rapidly. Both the number and average monthly value of fraudulent retail transactions rose in , according to LexisNexis. Fraud in international channels is 2.

barriers to adoption of e commerce today

Solving cross-border fraud is complicated. Merchants obviously want to ease consumer fears, or risk losing business. But fraud protection solutions, including increased manual review, often add layers and steps to the purchasing process, which could increase cart abandonment and decrease conversion rates. And they can also cause false declines, which are costly to merchants and can alienate consumers.

But there are solutions that can be implemented to help ease fears without impacting the consumer experience too drastically. Here are some of the key takeaways from the report: EMV cards are being rolled out with an embedded microchip for added security. The microchip carries out real-time risk assessments on a person's card purchase activity based on the card user's profile.

Security issues are a barrier to e-commerce adoption - Business Insider

The chip also generates dynamic cryptograms when the card is inserted into a payment terminal. Because these cryptograms change with every purchase, it makes it difficult for fraudsters to make counterfeit cards that can be used for in-store transactions. To bolster security throughout the payments chain encryption of payments data is being widely implemented.

barriers to adoption of e commerce today

Encryption degrades valuable data by using an algorithm to translate card numbers into new values. This makes it difficult for fraudsters to harvest the payments data for use in future transactions.

Point-to-point encryption is the most tightly defined form of payments encryption. In this scheme, sensitive payment data is encrypted from the point of capture at the payments terminal all the way through to the gateway or acquirer. This makes it much more difficult for fraudsters to harvest usable data from transactions in stores and online.

Tokenization increases the security of transactions made online and in stores. Tokenization schemes assign a random value to payment data, making it effectively impossible for hackers to access the sensitive data from the token itself. Tokens are often "multiuse," meaning merchants don't have to force consumers to re-enter their payment details.

Apple Pay uses an emerging form of tokenization.

One difficulty in fighting online fraud is that it is hard to tell whether the person using card data is actually the cardholder. Merchants who implement 3D Secure risk higher shopping-cart abandonment. In full, the report: Assesses the fraud cost to US retailers and how that fraud is expected to shift in coming years Provides 5 high-level explanations of the top payment security protocols Includes 7 infographics illustrating what the transaction flow looks like when each type of security is implemented.

Analyzes the strengths and weakness of each payment security protocol and the reasons why particular protocols are being put in place at different types of merchants. To get your copy of this invaluable guide, choose one of these options: BI Intelligence BI Intelligence Content Marketing Payments Payments Security E-Commerce.

Recommended For You Powered by Sailthru. Security issues are a barrier to e-commerce adoption Security issues are a barrier to e-commerce adoption This story was delivered to BI Intelligence Registration on or use of this site constitutes acceptance of our Terms of Service , Privacy Policy , and Cookie Policy.

Stock quotes by finanzen.

Rating 4,9 stars - 839 reviews
inserted by FC2 system