The dollar volume of fraudulent transactions leaped 35% year-over-year in April The Wall Street Journal has reported, citing data from Fidelity National Information Services. The sharp increase arrives as consumer spending has slumped to historic lows, signaling card issuers and merchants could face significant costs as a larger share of transactions turn fraudulent. Fraud losses reached $16.9 billion last year, according to The Journal, a 15% increase from 2018 and a worrying sign for cardholders, banks, and businesses. All parties stand to lose from such a jump, whether through undetected charges or reversed purchases.
Across Europe, where HowToPay has a strong presence, contactless payment is widespread and will continue to grow this new technology protects both merchant and consumer. However, this payment method still has a way to go before it is commonplace in the USA.
With these apps, consumers link their credit and debit cards to their app of choice. When it comes time to pay, they hold up their phone to the NFC terminal, which makes an instant payment. This is a lot faster than payment via a traditional credit card, which can take 15-20 seconds to process.
JP Morgan conducted a survey and found that only 16% of US consumers had completed a payment with a digital wallet transaction. But there is good news too: the research company Forrester reports that by 2021, mobile payments will triple in the USA, reaching up to $282 billion in annual sales, HowToPay sees this trend and is at the forefront with this as an offering putting its clients ahead of the game.
Mobile payments such as the one HowToPay provides also gives increased security for merchants and consumers alike.
Many devices have their own level of security further enhancing this product making it appealing to the global marketplace.
More importantly, digital wallet users do not expose their cards to scammers, which can steal credit card information. This sort of information is stored in their phones instead
Using your phone to make payments is becoming increasingly common as a payment method. When you install a mobile payment app such as the one offered via HowToPay on your phone you no longer need to carry cash or a credit card to buy something on a whim.
HowToPay is a subsidiary of Confidia, a Swiss based group that are leading the way in the global market with this new technology.