Inaugural State of Payment Processing and Fraud Report Shines Light on Evolving Market

April 24, 2018

In the midst of this year’s ETA Transact Conference, Kount has released the very first State Of Payment Processing And Fraud Report, in conjunction with The Fraud Practice. The report surveyed approximately 15 percent of the worldwide payment processor community to gain a clear understanding of its strategic priorities over the next year, and the value processors place on using qualitative and quantitative analysis within their organizations.

Payment processors are disrupting the financial market space, and are often one of the easiest ways for merchants to scale up their business. With this comes great opportunity for payment processors to court merchant clients, and for merchants to choose the processor that aligns best with their business needs (and, of course, makes fraud mitigation a priority). Read on to learn more about payment processor’s needs as they continue to evolve for merchants.

Card Not Present Fraud Fear is Very Present  

63% of payment processors say they are very concerned with the card-not-present channel fraud.

Other Top Concerns Keeping Payments Processers Up at Night 

In addition to CNP fraud fear, the majority of payment processors indicate that their merchant clients care most about:

  • Chargeback rates (73%)
  • Authorization decline (60%)
  • Order approval (47%)
  • And sales conversion rates (47%)

Most Important KPIs for Merchants

Looking Toward the Future

Payments processors continue to increase support and add new offerings for their merchant clients. These offerings are considered the most critical in terms of attracting and keeping new merchant clients. According to the report, the most important value-added services, include:

  • Support for new mobile and alternative payment types followed by offering fraud prevention services are the two types of value-added services payment industry organizations consider most important for attracting new merchant clients.
  • 9 in 10 organizations that support mobile and alternative payment types are increasing support for these this year.
  • More than 8 in 10 payment processors surveyed will increase support for business reporting and analytics.
  • 75 percent will increase support for integrated rules or fraud scoring, and nearly 70 percent will increase support for fraud technology tools.
  • Nearly 60 percent of payment processors offer or support velocity checks, while 45 percent offer or support rules engines, fraud scoring and IP geolocation.

If you want to learn more about value added services that payment processors are adopting, strategies to attract, acquire and retain merchant clients, market trends for types of payments accepted, and where investments are being made in the future, please download the full report.

Payment Processing Report