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Almost $ 2 trillion in transactions are carried out every year around the world and fraudsters would like nothing more than to get their hands not only on every penny, but also every byte of personal data associated with them. These bad actors deploy a wide variety of tactics for these purposes, ranging from rerouting online e-commerce traffic to their own pages, to impersonating customers and using fake payment cards to mark claims. goods for free.
Authenticating these payments has traditionally been done through usernames and passwords, but these methods are remarkably inefficient due to both their inconvenience and the efforts of legitimate customers to avoid this friction. Federated identity systems could be the key to reducing password dependency, allowing users to enter a unique username and password which then allow access to all related services.
In May Authenticated Payments Report®, PYMNTS explores the latest innovations in the world of payment
s authentication, including how fraudsters target payments, the authentication methods payment providers use to verify those payments, and how federated identity solutions like single sign-on (SSO) are winning rapidly gaining ground in the financial world.
Developments from the world of authenticated payments
Facial recognition is rapidly gaining ground as the preferred authentication method. A recent study projected that 1.4 billion consumers worldwide will use this technology by 2025, up from 671 million in 2020, this growth being attributed to easy access to front cameras on smartphones. Fingerprint scans are also very popular, with the technology expected to be equipped on 93% of biometrically equipped smartphones by 2025.
Other forms of biometrics are also gaining popularity due to their convenience and security capabilities. A full 73 percent of businesses in a recent study said biometrics was “very important” to ensure a good customer experience and 64% prioritized biometrics for user authentication. Forty-five percent of companies surveyed said COVID-19 had led to growth in their biometrics programs and 62% said they prioritized onboarding and remote authentication due to the remote nature of these interactions.
All of these authentication systems are designed to reduce customer reliance on passwords, which were found in a recent study to lead to reduced safety competence and increased customer abandonment. About 65% of consumers abandon websites when asked to create a username and password and 92% of users said they would rather quit a website altogether rather than try to recover or to reset their forgotten login details. Another 87.5% of customers said they were unwillingly banned from websites due to too many failed login attempts.
To learn more about these articles and other news on payment authentication, download this month’s Tracker.
How Single Sign-On Solutions Can Improve Compliance and Avoid Customer Churn
Payment authentication often walks a tightrope between transparency and security, with companies sacrificing one for the other. This is not the case with single sign-on systems, which allow users to effortlessly log into multiple services through a single secure password administered by a third party. In this month’s payment authentication follow-up, PYMNTS spoke to Clay mcdaniel, CEO of Ripl, on how SSO solutions can strike the perfect balance between usability and security.
In-Depth Analysis: How Federated Identity Can Reduce Reliance on Password-Based Payment Authentication
Billions of dollars in payments roam the world every year, and they all require authentication to ensure transactions aren’t fraudulent. Many of these payments rely on passwords for verification, a known security risk due to data breaches and poor customer safety hygiene. This month’s Deep Dive explores how federated identity solutions like single sign-on can lead to more secure and convenient payment authentication by reducing password dependency.
About the report
the Authenticated Payments Report®, a PYMNTS and Connection identifier collaboration, is the go-to monthly resource for updates on trends and changes in payment authentication.
