PayU Says Better Security Will Drive eCommerce Growth

As payment methods become increasingly digital, there is a need for greater security and online fraud prevention, Daniel Cohen, CPO at PayU Global Payments, writes in the new PYMNTS eBook, “2023 Payments New Year’s Resolutions.”

2023 will be an exciting year for digital payments. In recent years, the rapid growth of eCommerce called for a global transformation of the digital payments ecosystem. This year, payments will once again be top of mind for FinTechs, merchants and consumers alike.

As we enter the new year, I expect a number of noteworthy developments within the payments industry.

Going Digital Securely

First, the payments sector will continue its path toward digitization, but in a more secure manner. Whether traditional or newly introduced, payment methods are becoming increasingly digital, hence raising the need for greater security and online fraud prevention.

In fact, industry research has found that the cumulative merchant losses to online payment fraud globally between 2023 and 2027 will exceed USD 343 billion. As the importance of digital sales increases, a reliable anti-fraud solution, compliance with local regulations and up-to-date security protocols (network tokenization, 3DS, secure fields) are crucial components of providing customers with a safe and high-quality online shopping experience.

Innovation and Money Rails

Another key focus will revolve around continuing to drive money rails transformation. The benefits of blockchain and crypto as payment rails are clear to all. However, adoption by governments, financial institutions and regulators is limited. Furthermore, regulation will play an increasingly significant role, to foster trust in the crypto space and address the need for consistent regulatory compliance oversight across crypto markets around the world.

The FinTech industry must continue to lead the charge to democratize money movement and make it more accessible, affordable and efficient for all. Against this backdrop, the next global payment rails will enable industry players to develop innovative payment products and services, that follow customers everywhere and at all times.

Cross-Border Payments and Innovation

As enterprises increasingly engage with online consumers across geographical borders, they continue to focus on streamlining business operations and reducing costs. New business models and innovative payment rails can enable less expensive and more efficient cross-border payments, addressing the industry need for delivering funds efficiently, as part of a payment experience that meets the requirements of international businesses and consumers.

A Move Toward Better Transparency

The industry will continue to promote transparency in FinTech products and services, particularly credit offerings. With the economy in its current state, lending has become increasingly significant, but at what cost? Enabling innovative lending schemes is key but they must be responsible and transparent to protect consumers from bottomless debt pits.

As the buying experience is no longer a linear journey, it will be essential to drive innovation in order to provide consumers with more options and to continuously align with their needs, experiences, and expectations regarding their online shopping experience, in order to play the winning card in the eCommerce game in 2023 and beyond.