The digital shift has brought a rapid increase in fraud along with it. In the PYMNTS eBook, “Endemic Economics: 32 Payments Execs on the ‘Next Normal’ That Never Happened,” TreviPay CEO Brandon Spear discusses why understanding digital identity theft should be a top priority in any CX strategy.
Looking back over the past two years, the global B2B payments landscape experienced notable changes in sales channel strategies as eCommerce accelerated. B2B buyers became more digitally influenced — akin to their B2C preferences — which required merchant payments offerings and capabilities to evolve to better secure the sale. Without a digital commerce channel, B2B sellers now risk being left behind as their competitor offerings provide easy opportunities for buyers to shift their loyalty. According to Gartner, B2B organizations with digital commerce offerings will see 30% more revenue and a 20% reduction in costs by 2023, compared to competitors without B2B digital commerce sites.
But this rapid shift to digital also brought about a rapid increase in fraud. More than 60% of payments decision-makers within merchant companies cited their most urgent customer concerns include increased scrutiny on security and fraud prevention, more digital payment options and more flexible payment terms. But while companies are recognizing the need for technology-driven advantages, they must also consider the risks. Businesses using manual processes to underwrite and make determinations as to which businesses deserve credit and which do not, have had to make a shift with the increase in remote workforces and digital technology has pushed businesses to boost their digital interactions and acquisitions as well. This is an area that is ripe for digital fraud because so much business information is searchable by the public.
Understanding the risk and resilience around digital identify theft and other forms of digital fraud will continue to be a priority for us to ensure our clients, and their customers, are protected. TreviPay recently collaborated with PYMNTS to survey 150 businesses across three sectors to learn how they’re planning to boost their fraud-fighting approaches. Confirming the need for sophisticated anti-fraud measures, 98% of B2B retailers, manufacturers and marketplaces surveyed had experienced financial losses (averaging 3.5% of a B2B business’s annual revenue) due to successful fraud attacks last year. This loss increased to 5% for small businesses, the likes of which feel an even greater sting. Businesses that reported using proactive, automated anti-fraud solutions tend to see fewer fraud impacts, as automated anti-fraud technology tends to increase onboarding efficiency and speed.
Beyond revenue, slow and inefficient anti-fraud methods can also have a negative on customer experience. In fact, almost half (46%) of organizations using manual anti-fraud solutions reported that fraud concerns made it difficult to work with them. This can lead to unsatisfied customers and lost new business.
B2B merchants and manufacturers must be closely in tune with the revolutionary changes to customer experience, engagement and convenience embraced by the rising digital generation and accelerated by COVID-19. As B2B companies continue to expand their online offerings in 2022, supporting safety and security in payments remains a key priority in payments innovation.
Leveraging data and automated anti-fraud solutions to offer instant decisioning and credit will remain an important driver of B2B business growth by strengthening the relationship between buyers and sellers.
Those that embrace digital expectations and strengthen antifraud solutions will ultimately provide a better customer experience. This can establish stickiness and loyalty with customers, and offer cost savings, increased revenue potential and better cash flow.
