Tap and pin has been the most popular method of payment for the last decade. However, it has been limited to in-store payments… until now. Welsh software provider Burbank has completed the first online card-present payment.
This technology, known as ‘Card-Present over Internet’ (CPoI), saw payment executives from around the world come to Wales to witness the first payment using it. CPoI will bring a variety of benefits to the payments world, tackling issues such as fraud and false positives.
Chargebacks are proving to be extremely costly to businesses, and they don’t seem to be declining as reports of chargebacks have risen by 52 per cent. In fact, combining the total amount of money merchants have to pay customers in addition to dealing with fraud, firms are facing costs of around $40billion annually.
With payment fraud rising by 69 per cent year-on-year, Justin Pike, CEO, Burbank, said: “With CPoI, we are aligning in-store and digital payments. Our goal is to transform e-commerce by significantly reducing fraud and eliminating false positives—issues that have long plagued online sellers.”
“CPoI will open up internet purchases to all ages and give consumers the highest level of protection when shopping online, whilst revolutionising online commerce for merchants by mitigating fraud, setting a new standard for secure online transactions.”
“With our technology, online shoppers simply tap their payment card against their own mobile device and securely enter their PIN to complete payment, just as they do in-store. The physical card and PIN confirm the true cardholder’s identity, therefore significantly reducing the opportunity for fraud.”
Tackling false positives
Fraud isn’t the only issue CPoI will address. False positives have plagued online businesses for a while, flagging legitimate transactions incorrectly as fraud and, in turn, costing organisations sales. With CPoI, these problems will be much less common.
Pike commented: “These erroneous actions cost merchants $443billion per year, with 65 per cent of blocked transactions being false positives. Worse still, 41 per cent of affected customers never return to the retailer. With CPoI enabling card-present payments online, merchants no longer need anti-fraud technology, effectively eliminating false positives and improving the customer experience, whilst costing the merchant nothing to deploy.”
Online retailers may experience other benefits with CPoI as it removes barriers to online shopping by enabling consumers to pay online the same way they do in-store. Great news for consumers wary of entering and storing card details online or who may struggle with convoluted online checkout experiences.
By making online payments as seamless and secure as in-store transactions, CPoI has the potential to drive greater consumer confidence, increase conversion rates, and enhance the overall online shopping experience.
As the retail landscape continues to evolve, this breakthrough technology paves the way for a future where fraud is minimised, false positives are eliminated, and shopping online is more accessible.
