Nearly all UK merchants have experienced an increase in payment declines following the introduction of Strong Customer Authentication (SCA), according to research from Nuapay.
The report found that 99% of merchants have seen a rise of at least 5% in declines, with businesses seeing an average of 37% of transactions being declined.
Worryingly, it found that 35% of merchants have seen a jump in payments fraud, compared to two years ago.
When asked if current payment security measures were enough, 62% of merchants said they were dissatisfied and felt there was room for improvement.
Other findings in the report were that 29% believe regulations need to go further to prevent fraud and 33% think regulations have a negative impact on the customer experience. However, 39% believe regulations are fit for purpose.
Security looks set to be a continuing challenge for merchants. Its report found that 33% of merchants agreed that payments security would be their biggest challenge and a further 29% said data protection would be a primary concern.
Nuapay CEO Brian Hanrahan said, “As the research shows, SCA regulations have been far from the silver bullet that regulators might have hoped, creating serious checkout friction and frustration for consumers and lost sales for businesses.
”Open banking payments offer a clear solution because they’ve been designed since Day 1 to comply with SCA while giving a great mobile-native user experience. They are inherently far more secure than other forms of payment as they don’t require a customer to share their card details with the merchant.”
Nuapay recently released another findings report, which found that 35% of payments professionals predict open banking to become the most popular payment method among customers in the next five years.
FinTech Global recently spoke to a number of FinTech professionals about the level of support in the sector for the LGBTQ+ community. Marie O’Riordan, global director of public relations PayTech company Nuapay, told FinTech Global, “Given my experiences of homophobia over the years, including being physically gay-bashed on several occasions and being physically assaulted in broad daylight just before joining EML in 2017, I’m cynical of corporate bandwagons in the wider world latching onto anything LGBT+-related with no substance.
“Diversity and inclusion policies and awareness make a real difference in an organisation and help everyone to feel accepted. It’s refreshing to be myself at work with no backlash. Culturally, the buy-in at all levels across the organisation is reassuring.”
Read that full article here.
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