Online shopping and transactions are the backbone of the economy. They’re also a weak spot, being vulnerable to errors and data breaches. Secure payment systems are thus a high priority for both shoppers and merchants. Secure payment options include solutions for verification and authentication.
The need for secure payment systems
Collection agencies, call centers, e-commerce businesses and financial products and services all rely on secure payment systems. As consumers increasingly turn to online shopping and other financial transactions, these transactions are also at risk because of inaccurate information, security breaches and more. Secure payment solutions can help to reduce the risk of online security breaches, identity theft and other problems.
Global e-commerce takes off
Global e-commerce sales have quickly reached a high volume, generating $931,490 worth of sales every 30 seconds via desktop computers and $269,683 worth of sales via mobile devices like tablets and smartphones. Shoppers know exactly what they are looking for, having first researched products and stores online.
In 2015 Statista reported that customers often buy in bulk when shopping online, since there are incentives for doing so. The average amount spent by a shopper in the U.S. on an online purchase is $78 on each order.
Fraud grows apace with online transactions
The world of online financial transactions is also highly vulnerable to various forms of fraud. As of 2014, worldwide losses due to payment card fraud totaled $16.31 billion. By 2020, this figure is projected to reach $35.45 billion. In the U.S. alone, the costs of credit card fraud total more than $8 billion each year.
As well as credit card fraud, online transactions are susceptible to data breaches, which can lead to identity theft and other types of loss. As of 2104, data breaches numbering 1,540 worldwide in 2014 led to more than one billion data records being compromised. This figure is actually up by 46% from the preceding year.
The purpose of the data breaches can be identity theft, financial access and account access. In about 12 % credit or debit card fraud cases, the initial point of contact for the hackers is a website.
Secure transactions prevent data breaches
Secure transactions using data encryption techniques can prevent data breaches, identity theft and credit card fraud. The strongest security is provided by a 256-bit encryption, which even the most accomplished hackers find difficult to break.
As e-commerce continues to grow, secure payment solutions will benefit both consumers and merchants. For a whole range of industries and services, such as tech support, software support, membership, discount, and coupon clubs, magazine subscription centers, dating services, direct marketing, auto discount / warranty services, online art and auction companies, penny auction companies, tobacco sales, bitcoin sales, medical marijuana sales, airlines, travel, and credit monitoring services – secure online payments are essential to their functioning.