Online transactions volumes are increasing, but at the same time fraudulent activity is becoming more sophisticated and more prevalent, growing at a rate of 15% from $400 million in Australia in 2014. It’s no wonder that consumers are wary when they are asked to provide their card details online.
Significantly for online merchants, highly engaged consumers are abandoning
their carts 70% of the time on PC devices and 97% of the time on mobiles.
On PCs, 18% of abandoned carts can be attributed to payments related issues, namely trust and additional charges that appear at checkout. Presumably this figure is at least this high on mobile devices where the trust issue is further amplified and there are further issues including visibility on smaller screen sizes, worries about getting credit card details correct, and concerns about security on wireless networks.
Apple Pay has made some progress in Safari usability by deferring payments to the app. But this does not help the 86% of the mobile market using Android or other devices, nor does it address e-commerce gateways. It’s time for the payments industry to step up and innovate to help recapture this massive potential uplift in online revenue from otherwise highly engaged customers.
Bluechain addresses fraud associated with card-not-present (CNP) transactions and provides a secure and safe payment system for all transactions whether made in-store, online, over the phone, billed, or peer-to-peer.
Card fraud, most often associated with CNP transactions, exploits a long-standing flaw in the current payments paradigm. Bluechain closes this hole by identifying the requesting entity, by controlling and authorizing transactions, and by binding the requestor and payer in authorization requests.
The Bluechain process puts the buyer in control of the payments process, assured that only they can authorize payments, even if their card details are stolen. Providing their card details no longer carries any risk of fraud. They can be confident that any fraudulent activity will be identified and stopped immediately a payment attempt is made.
Importantly, this also means that transactions cannot be disputed because the risk of fraud is removed. Merchants reap the rewards of reduced cart abandonment and can trust that a payment, which is received immediately, is legitimate. And so charge-backs, which are a significant side effect of fraud in CNP transactions, are eliminated.
Banks can trust in Bluechain transactions, confident that CNP transactions have been completed with as much, if not more, security that card-present transactions. And, by dealing with costly fraud issues, banks are able to offer more competitive rates on processing transactions to both retain and lure new customers.
Where other payment platforms only solve part of the problem, and do so by competing with the banks, Bluechain addresses all payment scenarios and works with the banks in partnership to put trust into e-commerce purchases.