Improving mobile payment channels and reducing fraud

The Mobile Payments and Fraud Survey report by Kount is the fifth edition of this annual study which analyses the state of mobile payments and the mobile channel fraud.

More than 800 respondents participated in the Mobile Payments and Fraud Survey, of which nearly one-third of merchants surveyed overall had annual revenues greater than $500m. Participants of the study analyse the future of mobile commerce and the challenges that are presented by fraud, detecting fraudulent transactions in real time and analysing false-positive transactions.

It’s clear that the world of payments and fraud is dynamic and fast-moving, especially through digital and mobile channels. The mobile industry has significantly grown in revenue over the past few years, with more people turning to digital and mobile payment methods as a means of paying than ever. This growth, however, has also sparked further concerns with payments fraud, which has continued to migrate to the mobile channels and transactions.

As the mobile payment ecosystem has evolved over recent years, digital and mobile wallets are diversifying beyond in-store transactions and embracing the everyday commerce, enabling seamless payments for transportation, event ticketing, ordering food and sending money to friends.

Key findings from the Kount report show that Visa Checkout, MasterCard’s MasterPass and Samsung Pay are the next most commonly accepted major mobile wallets, with all three enjoying significant growth in merchant acceptance over the past year.

Consumer adoption in mobile wallets has grown significantly, and merchants need to continue to innovative and keep up to support the variety of different payment types across the various mobile operating systems and platforms, whether it’s within a mobile app or mobile-optimized site, merchants can accept multiple payment methods.

Nearly all participants surveyed—97 percent—accepted credit cards via mobile devices. PayPal, accepted by 56 percent of merchants for mobile commerce, was the third most supported payment method after credit and debit cards. More than one-in-five merchants accepted mobile wallets, but few accepted ACH (8 percent) or Bitcoin (2 percent).

On average, merchants accepted 3.4 different mobile payment methods. This included nearly 70 percent of merchants that supported 3 or more mobile payment methods, 47 percent that supported 4 or more, and 20 percent of merchants that accepted at least 5 mobile payment methods.

Find out more on the global state of mobile commerce and digital wallets by downloading your complimentary copy of the report.

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