Commerce

andPaymentTrendsReport

Fivetrendstowatch

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GlobalPayments2024CommerceandPaymentTrendsReport

EXECUTIVEINSIGHT

CameronBready

President,ChiefExecutiveOfficer,GlobalPayments

Transformationandadaptationhavealwaysbeenattheheartofbusiness,andthat’sespeciallytruenow.Anun-predictableglobaleconomyhasforcedmanyleadersintoaction.Andwiththerapidadvanceofnewtechnologies,thosewhogetoutinfrontofmajortrendsareinthebestpositiontobenefitfromthem.

Incommerce,businessesofallsizeshaveexperienced

ayearofdisruptionandrapidchange.Mostnotably,

generativeAIiscatalyzingtransformationandinnovation.Already,manybusinessesaredeployinggenerativeAItorapidlyimprovecustomerserviceandsupport,enhancesecurityandfrauddetection,andsupporttheintegrationscriticaltomakingpaymentsefficientandpowerful.

Withoutadoubt,generativeAIrepresentsoneofthemostimpactfultrendswehaveseenindecades.

Thisandothertrendspresentnewopportunitiesto

rethinkandreinventtheentirepaymentandconsumer

experienceatthebusinesslevel.Whetherit’sembeddedpayments,behavioralbiometricsorgamificationof

payments,businessesareonanongoingjourneyof

innovationandcreatingfreshexperiencesforconsumers.Theresultislessfrictionandmoreengagement,andtheexpectationthatbusinesseswillkeepraisingtheirgame.

Ofcourse,thatexpectationisnotjustfornewwaysofhandlingandprocessingpayments.Somerelatetothebasics.Taketheissueofsecurityandfightingfraud.

Businessescan’taffordtositonthesidelines.The

technologiesanddigitalizationthatdrivesomanyofthe

improvementsinthepaymentprocessarealsodriving

greaterexposuretobadactors.Aswebuildnew

enhancements,weneedtothinkaboutmakingtheentirecommerceandpaymentprocessevenmoresecure.

Thesetrendsformthecenterofthisyear’sreport.We

havespokenwithleadingindustryexpertsandconductedaglobalmarketresearchstudyamongbusinessesand

issuerstoidentifyfivekeytrendsthatwebelievewillmakeamajorimpactinthecomingyear.Theseare:

?GenerativeAI

?Embeddedpayments

?Securityandfraudprevention

?Livecommerce

?Next-gendigitalexperiences

Eachofthesetrendsreflectsamovetowardmakingeachtransaction—whetherinpersonoronline—simpler,moresecureandseamless.Andallofitisinformedbydatathatmakestransactionsmorepersonalized.

Consumerneedsandexpectationsaredrivingthese

trends.Businessesthatwanttoleadthecompetition

needtounderstandthesetrendsandfindwaystoapplythemtotheirownstrategies.Thatkindofproactive

approachwillputeveryorganizationinapositiontostay

outfront,meetingconsumerswheretheywanttogonext.

Readontodiscoverhowtotakeyourbusinesstothenextlevel.

In2023,theglobaleconomywasflashingredinkeymarketsashighinflationand

interestratespersisted.Butthathasn’tdisruptedthetransformationweare

seeingincommerceandpayments.

ThattransformationwascatalyzedbytheintroductionofgenerativeAI,atechnologywithsignificantimplicationsfortheglobaleconomy.WithAIandseveralother

majortrendsyearsinthemaking,globalcommerceispoisedformassive

innovationandcreativityacrossevery

stageoftheconsumer’sbuyingjourney.

Andit’snonetoosoon.Consumer

expectationsarechanging.Thebarishigher.Peoplewantseamlessbuyingexperiences.Andconsumerswant

protectionfromincreasinglysophisticatedfraudsters.

Howdoyoumeetexpectationsand

balanceprioritiesintheyearahead?

Our2024CommerceandPayment

TrendsReporthighlightsfivetoptrends

thateveryleaderneedstounderstand

andappreciatetopropelbusinessgrowth.

GlobalPayments2024CommerceandPaymentTrendsReport

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TRENDSOVERVIEW

TREND1

Artificial

intelligence

Takescenterstage

TREND2

Embeddedpayments

Makethemworkforyourbusiness

TREND3

Securityand

fraudprevention

Risetomeet

freshchallenges

TREND4

Livecommerce

Makesanimpression,andthesale

TREND5

Nextgendigitalexperiences

Quick,convenient,fun

Globalinsightsfromtheexperts

Forthisreport,weheldin-depthdiscussionswithinnovationleaders,technologistsandindustryexpertsfromleadingfinancialinstitutions,businessesandpaymentnetworks.Wealsosurveyed541globalprofessionalsimmersedinadvancingcommerce.What

theysharedwithussuggeststhatwhateverdirectiontheglobaleconomymaytake,businessesofallsizesaretakingtheinitiativetoremovefrictionfromthepayment

process,deploythelatesttechnologiestoreducefraud,anddeepentheirrelationshipwithconsumerswitheachtransaction.Thisreporthighlightsinsightsfrompaymentexpertsacrosstheglobe—Europe,NorthAmericaandAsiaPacific—whoaretrackingthelatestinnovationsandtrendsinpaymentsandcommerce.

GlobalPayments2024CommerceandPaymentTrendsReport

TREND1

Artificial

intelligence

takescenterstage

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GlobalPayments2024CommerceandPaymentTrendsReport

AI’semergenceasaleadingbusinessdriverisclear.

NowthatAIhascapturedthepublic’sattention,itcanbeusedtoaddressmanybusinessopportunities—fromsalesforecastingandcustomerservicetofraudmitigationandmore.Businessleadersnowhaveaccesstounprecedentedanalyticalandpredictivebrainpower—thequestion

ishowtouseittogainacompetitiveedge.

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GlobalPayments2024CommerceandPaymentTrendsReport

TheAIrevolution:Asbigastheinternet?

AfterChatGPTintroducedtheworldtothepowerofgenerativeAI,BillGatessaidAIwouldbearevolutiononparwiththeinternet.Aboldprediction,butthenumbersbearitout.

Incommerce,generativeAIcouldrewritetherules.AccordingtoMcKinsey,this

technologycouldadd$2.6trillionto$4.4trillioninvaluetotheglobaleconomyannually

acrossthe63differentbusinessusecasestheyanalyzed1Ofthefivegreatestimpacts

bydollarsize,threewouldbeinsales,marketingandcustomeroperations,McKinseysays.

“It’snotveryofteninone’slifetimethatatechnologylikethiscomesalongwithsuchawidevarietyofusecases,”saysVanessaColella,headofinnovationanddigital

partnershipsatVisa.

ButwhichapplicationsofAImakethemostsense?That’saquestionbusinessleadersarebusytryingtoanswer.

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GlobalPayments2024CommerceandPaymentTrendsReport

“Virtuallyeverybusinessistryingtounderstandhowtoincorporateorintegrategenerativeartificialintelligence.”

GuidoSacchi

GlobalPayments,SEVPandChiefInformationOfficer

globalpayments

ofcompaniesareenthusiasticaboutAI

Andorganizationsarerecognizingtheopportunity.

?Sixty-onepercentofcompaniessurveyedareenthusiasticabouttheimpactofAIontheirbusiness.However,thereisanenthusiasmgapbetweenthetypesofbusiness-es:Forty-ninepercentofsmallandmedium-sizedbusinesses(SMBs)areenthusiasticversus80%oflargeandmultinationalenterprises.

?Forty-sevenpercentofbusinessesand37%ofissuersindicatethistrendisextremelyimportanttotheirbusinessin2024.

?Amongbusinesses,thetopthreeexpectedapplicationsforAIarecustomerservice(43%),frauddetection(43%)andmarketing(40%).

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GlobalPayments2024CommerceandPaymentTrendsReport

AIisabusinessforcemultiplier

ForSMBs,enterprisesandmultinationals,generativeAIisaforcemultiplier.Itamplifies

existingtechnologiesandinvestmentsaimedatimprovingproductivity,efficiencyand

customerengagement.Itliesbehindsomeofthemajortrendsrevolutionizingcommerceandpayments.

?AI-poweredbiometricshelpsspeedcustomersthroughcheckout.

?AIoffersthepotentialtogreatlyincreasetheaccuracyoffrauddetection.

?AI-supportedAPIintegrationsarefasterandlesslabor-intensive.

SPOTLIGHT

AI’simpactoncustomerservice

McKinseyestimatesthattechnologyhandlesroughlyhalfofcustomercontactsalready.

GenerativeAIcouldhandleanotherquarter.Acustomerservice“bot”poweredbygenerativeAIcouldusedetailsprovidedbyacustomertoresolvesimpleissuesimmediately,retrieveimportantinformationforacustomersuccessrepresentativeandrecommendnextsteps.Productivityat

customerservicecenters,McKinseyestimates,couldriseby30%to45%.2

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GlobalPayments2024CommerceandPaymentTrendsReport

WhygenerativeAIistransformative

GenerativeAImarksanewera:WhilebusinesseshavebeenusingAIforyears,generativeAIrepresentsanentirelynewtypeoftechnology.

“GenerativeAIisself-learningandoffersimprovedpredictivecapabilitiesovertime,”saysSacchi.“It’safeedbackloopthatcontinuouslyvalidatesresultsandfeedsthemintothemodel.Themodelkeepsrefiningitselftoproducebetterresults.Thegenerativeaspectofitiswhatisnew.”

Here’showbusinessesareputtinggenerativeAItowork.

Enhancingoperationalefficienciesforclients.APIintegrationsforbusinessesareoftenrigorousandtime-intensive.“ApointoffrictionforalotofcompaniesintheirintegrationsistakingthetimetobuildAPIstocaptureandpushallthenecessaryinformation,”says

AdamMitchell,EVPofproduct,technologyandenablementatGlobalPayments.

“GenerativeAI’sabilitytostreamlineandautomatesoftwaredevelopmentwillleadtomoreintegrationslikeshoppingcarts,CRMsandemailmarketingtools.”

Boostingcustomersupport.Chatbotshavebecomecommonplacecustomerservicetoolsformanybusinesses.GenerativeAI-poweredchatbots,however,arepoisedtomakesignificantstridesinmeetingandanticipatingcustomerneeds.3They’llbeabletoanswercommonqueriesaboutpaymentbalances,orderstatusesandreturns,freeingup

customerserviceteamstoaddressmorecomplexorsensitiveissues(seeSpotlight).

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GlobalPayments2024CommerceandPaymentTrendsReport

“Ithinkyou’regoingtoseeahugereductionincallvolumeat

customerservicecenters.AIwillfreeupsupportteamstodigintoreallyhard-to-solve,complexproblems.”

AdamMitchell

GlobalPayments,EVPofProduct,TechnologyandEnablement

globalpayments

Managingfraudandrisk.GenerativeAIopensthedoortobetterfrauddetection.4

Rightnow,frauddetectionsystemshavetoofew“genuine”orstrongfraudcasesto

analyzeandlearnfrom.WithgenerativeAI,youcouldproducesyntheticexamplesof

fraudbasedonthepatternsestablishedbyactualcases.5Thesesequenceswould,

inturn,helpimprovefraud-detectingsystems.GenerativeAIislikeacoachtoanathletewhoneedstotrainforrarebutcriticalgamesituations.

Deliveringfriction-freepaymentsandauthentication.Amazon’s“pay-by-palm”

technologyallowscustomerstopaybyscanningtheirpalmsonapoint-of-sale(POS)

deviceinsomeofthecompany’sWholeFoodsstores.Usingbiometricauthentication,

generativeAIandmachinelearning,pay-by-palmcanspeedshoppersthroughcheckout.6Behindthescenes,AI-poweredtechnologyisauthenticatingthecustomer’sidentityandprocessingtheirpayment,anothersteptowardsmakingthepaymentexperience

“invisible”forcustomers.“Theauthenticationspaceisripeforfurtherinnovation,”saysSacchi.“Peoplewantmaximumsecuritywithminimumfriction.”

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GlobalPayments2024CommerceandPaymentTrendsReport

BUSINESSTAKEAWAY

WhilegenerativeAIfirstwowedaudiencesbygeneratingpoems,essaysandeven

websitesfromthesimplestprompts,itsfullimpactwillbefeltascompaniesturntheirpoweronbusinessusecases.

“Everytimewegetabig,fundamentally

differenttypeoftechnology,theinitialuse

casesstartoutkindofclunky.Yetovertime,itraisesthebarforwhatcustomersexpect,”saysVisa’sColella.“Thoseexpectationsseepintoconsumers’heartsandmindsandoncethey’rethere,theydon’tgoaway.”

GenerativeAItoolsarealreadyfindingtheirwayintomanyplatformsandapplicationsusedbybusinessesofallsizes.Thesetools

arepowerful,andwhenthoughtfullyappliedtokeybusinessfunctions,AIcanboostteamproductivityandpotentiallytransformthe

wayyourcustomersexperienceyourbrandandbusiness.

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GlobalPayments2024CommerceandPaymentTrendsReport

TREND2

Embeddedpayments:

Makethemworkforyourbusiness

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GlobalPayments2024CommerceandPaymentTrendsReport

Thepandemicpushedmillionsofconsumerstorelyon

embeddedpayments,wheretheycanmakeapurchase

withoutleavingtheirfavoritewebsite,socialmediachannelormobileapp.It’satrendwe’vebeenwatchingforseveralyears.Butnow,embeddedpaymentsareexplodingacrosscommerceandinunexpectedindustries.Inthefive-year

periodendingin2026,theglobalmarketforembedded

paymentsisexpectedtosurpass$138billion,amorethanthreefoldincrease.7Thevalueofembeddedpaymentstoconsumersisclear.Andbusinessescantakeadvantageofatroveofcustomerdatathroughastreamlined

paymentexperience.

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GlobalPayments2024CommerceandPaymentTrendsReport

Meetingconsumerswheretheyare

Today,businessesbeyondcommerceareputtingembeddedpaymentstowork:In

everythingfromhealthcaretoutilitiestorealestate,enterprisesrecognizethatconsumerswelcomethelow-frictionprocess.Andincertaincases,embeddedpaymentsareessentialtothesector’sfuture.Forinstance,softwarevendorsforresidentiallandlordshave

evolvedfromprovidingpropertymanagementsolutionslikeparkingormaintenancetohandlingpayments.8

“JustaslifeonEarthseemedtosuddenlyburstonthescene,we’regoingtosee

aCambrianexplosionofembeddedpayments,”saysVanessaColella,globalheadofinnovationanddigitalpartnershipsatVisa.“It’stheconfluenceofthreeelements:

consumerbehavior,newtechnologiesandindustrieseagertointegratethattechnology.”

Whythetechnologymatters

Thelinchpintowidespreadadoptionisthesophisticationandreliabilityoftheunderlying

technology.Thankstoadvancesinfintech,businessesofallsizeshaveaccesstoagrowingsuiteofembeddedpaymentproducts—whethertheircorebusinesshasanythingtodo

withfinanceornot.Forinstance,businessescantapintotechnologypartnersthatcanactaspaymentprocessors.Throughcollaborationsandinnovation,businessescanconvert

theironlineplatformsintoone-stoppaymentgateways.9

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GlobalPayments2024CommerceandPaymentTrendsReport

“Thetechnologyisthere,”saysLucTeboul,partner,transactionbankingengineering

atGoldmanSachs,wherehefocusesondigitalfirstcorporatecashmanagementandpayments.“Wehavealotoffinancialengineeringaroundtheflowoffunds,andwe

maketheclient’slifeeasierbybringingpaymentsintooneplace.”

Thatworkinthebackgroundtranslatesintoatransformedcustomerexperience.

“Thisiswhatwecallcontextualcommerce,allowingthebusinesstomeetthecardmemberwheretheyare,reducingthefrictionin

thecheckoutprocess.Whetherit’sbuyingsomethingthroughyourfavoritesocialmediaapp,ormakingapurchasedirectlyinyour

vehicle,thepaymentexperiencewillbenativelywovenintothecustomerjourney.”

PaulMartin

AmericanExpress,VP,GlobalEmergingPaymentsandStrategy

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GlobalPayments2024CommerceandPaymentTrendsReport

Massmomentum

Industryexpertspredictembeddedpaymentswillgainevenmoremomentumin2024andbeyond.Asbusinessesrecognizehowembeddedpaymentscandriverepeatsales,promotebettercashmanagement,enableseamlessreconciliationandreducepaymenterror,10weexpecttheirinteresttoriseevenfurther.

Forty-fourpercentofbusinessessaidembeddedpaymentswouldbeextremelyimportanttothemin2024.

Somehigh-profileusecasesaredrivingawarenessofthetrendanditspower.

Starbucksloyaltyapp,whichallowscustomerstoloadfunds,earnrewardsand

pre-orderdrinks,heldmorethan$1.8billionindepositsasofthesecondquarterof

2023.Bythiscalculation,thatmakesStarbucksbiggerthan90%ofindividualUSbanksbydepositsize11

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GlobalPayments2024CommerceandPaymentTrendsReport

“NolongerdoIstandinlinetoorder:Paymentsareembedded,andIdon’teventhinkaboutthem.Iwalktothecoffeeshop,thecoffee’ssittingtherereadytogo,andIpickitup.Thesechangesallfeelsmall,buttheyaretransformative.”

VanessaColella

VISA

Visa,HeadofInnovationandDigitalPartnerships

Inthebackground,creatingdeeperconsumerconnections

Embeddedpaymentsfostercustomerloyalty.Asthetransactionfadesintothebackground,companiescancreatepositivebrandexperiencesanddeeper

connectionswiththeircustomers.

Oneexampleofthisisinpersonalvehicles,ascompanieslikeMercedes-Benzare

exploringwaystoturncarsintopaymentdevices.In2018,thecompanylaunchedits

ownpaymentscompany,Mercedespay.Customerscannowpayforcar-related

products,servicesandupgradesfromtheirvehicleusingabuilt-inbiometricfingerprintsensor.Mercedespayisoperationalinmorethan40marketsglobally12

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GlobalPayments2024CommerceandPaymentTrendsReport

$600b

marketsizeofconnectedvehiclecommerceby2030

?ArecentstudyfromPtolemusConsultingGroupsaystheconnectedvehiclepaymentsmarketcouldreach$600billionby203013

“Anythingthatremovesfrictionisbeneficial,”saysLathaYoungren,chiefmarketing

officer,Tripleseat,aneventmanagementplatformforhotels,restaurantsandspecial

venues.“Whenyoutakeaflightnow,theyhaveyourcreditcardinformationassociatedwithyourseat,soyoucanorderadrinkandtheyjustbringittoyou,andthere’sliterallynoissueaboutpayment.”

Ofcourse,theadvantageofofferingembeddedpaymentsisnotjustaboutremovingfriction.Now,businesseswillhaveapipelineofdataandanalytics,collectedautomatically,toenhancecustomerexperiences14

MarkSmith,headofpaymentsandmarketdevelopmentatAmazonWebServices,saysthechallengeistakinghugedatarepositoriesandturningthemintogrowth

opportunities:“It’saboutminingthatdatatofindthenewproductorbusinessopportunitytosetthemapartfromtheircompetitors.”

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GlobalPayments2024CommerceandPaymentTrendsReport

BUSINESSTAKEAWAY

Tapintotheconvenienceofembeddedpayments

Embeddedpaymentscanboost

customersatisfaction—andyourbottom

line.Theseamlessprocesscanbuildtrust.Thelackoffrictioncanreducecart

abandonment.Andtheconveniencecanencouragerepeatpurchases—allthankstoevolvingtechnologythat’sreadilyaddedtoyourcurrentpaymentsystems.

Youdon’thavetobeanexpertinpaymentstotakeadvantageoftheriseofembeddedpaymentsolutions.Thetechnologyexists

toallownon-financialbusinessestoofferaseamlessbuyingexperiencewithinthecustomerjourney.

“Paymentsolutionshaveevolvedfromjusttheacceptanceandprocessingofthe

paymenttoamuchricherofferingincludedinanoverallexperience,”saysSacchi.“It’sasoftware-drivensolution.Thepaymentisstillaveryimportantpartoftheexperience,butnowtheoveralluserexperiencereally

dominates—andthatiswhatmatterstotheconsumer.”

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GlobalPayments2024CommerceandPaymentTrendsReport

TREND3

Securityand

fraudprevention

risetomeet

freshchallenges

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GlobalPayments2024CommerceandPaymentTrendsReport

Digital,mobileandsocialcommercechannelspromise

toremovefrictionforconsumers.Butthesechannelsalsocreatemoreopportunitiesforfraud,identitytheftandothercriminalactivities.Someestimatessay35%ofecommercetransactionsaremalicious15Overthenextdecade,fraud

isexpectedtocostthecardindustryover$400billion16Andeverydollarlosttofraudulenttransactionscosts

businesses$3.75becauseofrestocking,chargebacksandotherindirectcosts17Butbusinessescandefend

themselves,helpedbynewtechnologies,andleadersareputtingthesenewtoolstowork.

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GlobalPayments2024CommerceandPaymentTrendsReport

62%

ofbusinessessayreducingpaymentfraudisanurgentconcern

Customersexpectprivacy

Anotherdimensionofsecurityisprivacy.In2021,databreachesoccurredmorethan4,100timesglobally,equatingtoabout22billionexposedrecords18TheUShasbeenparticularlyhardhit.In2022,morethan422millionUSindividuals19andtheirpersonalrecordswere

exposed,consideringthatmanyindividualsarevictimsofmultiplecompromises.Amongcreditcardusers,44%reportedtwoormorefraudulentchargesin2022.20

Thoughthreatscancomefrommanysources,consumersandpolicymakersexpect

companiestotaketheleadinprotectingtheirprivacyandsensitivedata—andbusinessleadersknowit.

?Sixty-twopercentofbusinessessayreducingtheamountofpaymentfraudisanurgentconcern,morethananyotherissue.

?Fifty-fivepercentoftotalbusinessesrank“securityofcustomerdata”asthemostimportanttrendgoinginto2024.

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GlobalPayments2024CommerceandPaymentTrendsReport

Newthreats,newresponses

Omnichannelcommercemeansomnithreats—andbusinessesrecognizetheymusttakeextrameasurestoprotectpaymentsystems.That’showadvancedtechnologieslikeAI

andsophisticatedidentityverificationsystemssuchasAWS’continuousauthenticationprotocolspointtothefuture.

“Theconceptofcontinuousauthenticationtoverifyidentitythroughoutanentiresession,ratherthanjustatlogin,isonewaywe’reworkingwithcustomerstopreventunauthorizedaccessanddecreasefraudrisk,”saysMarkSmith,headofpaymentsandmarket

developmentatAmazonWebServices.

Suchsecuritymeasuresandsolutionsaimtoenveloptheconsumerateverytouchpointofthebuyingjourney,usingdataandvariousscoringmechanisms.

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GlobalPayments2024CommerceandPaymentTrendsReport

Howtechnologyischangingthegame

WhileAIandmachinelearninghavebeenpartofthecrime-fightingtoolkitforyears,generativeAIisanewpropulsiveforceinfraudmanagement.

“GenerativeAIisparticularlypowerfulintrainingyourexistingfraud

detectiontools,becauseitcangeneratemoregenuine-lookingfraudeventstohelpcreateabroaderpoolofpotentialgenuine-lookingriskscenarios.”

KateWeiler

DiscoverFinancialServices,DirectorofPaymentServicesRisk

“ThemostprevalentusecaseforAIwe’reseeingfromcustomersisaroundfraud

preventionandcreditextension—beingabletomakequickdecisionsandcontinually

trainanddevelopAImachinelearningmodelstomaketherightdecisionsbasedon

thecustomer,”saysAWS’Smith.“We’vegotsomereallysavvyfintechsandestablishedcompaniesthatareupdatingtheirfraudpreventionplatformsrightnow.”

GenerativeAIhasalsogivenbusinessesthepowertoidentifyanddefendagainstattacksinrealtime.

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GlobalPayments2024CommerceandPaymentTrendsReport

“GenerativeAI,aswellasmachinelearning,hastheabilityformorereal-timeprocessingthananythingwecoulddoinourbackoffice,”saysWeiler.

Fraudsters,however,usethissametechnologyinincreasinglysophisticatedways,suchasinphishingattemptsandbulkemailattacks.AndwhilerulesandpracticesonusingAIresponsiblyarebeingwritteneveryday,thosedon’tmattertocriminals.

“Fraudstersaregoingtobeaggressiveinleveragingthesemodelsbecausethey’renotconstrainedbywhatwe’reconstrainedby,”saysAdamMitchell,EVPofproduct,technologyandenablement,GlobalPayments.

Theunderlyingmessage:It’saspyvs.spyworldwherethetoolsgetsharper,thestakesgethigher,andbusinessescan’taffordtositonthesidelines.

SPOTLIGHT

Usingneuralnetworkstofightfraud

Aswithanycriminalact,digitalfraudisoftenpursuedinacoordinatedwaybygroupsof

individuals.Butfindingthesebadactorsischallenging.Theyoftenhidebehindmultipledigitalidentitiesandusesophisticatedsoftwaretocovertheirtracks.AmazonNeptune,agraph

databasesolution,cancreateafraudgraphthatstoresandmapstherelationshipsbetweenmultiplepeople.Usingemailaddressesandaccounts,phonenumbers,favoredPOSlocationsandotherinformationthatfraudnetworksmightshare,afraudgraphcanquicklymapouta

connectedbutcomplexnetwork,helpingorganizations(andlawenforcement)homeinonthecriminalsbehindsomeofthemostcoordinatedanddamagingdigitalattacks.21

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GlobalPayments2024CommerceandPaymentTrendsReport

7%

morebusinessesareconsideringMFAin2024

Howbusinessesarefightingfraudnow

Globally,businessesarerespondingtothethreatoffraudinmanyways.PoliciessuchasPSD2,aEuropeanUnionruleinforcesince2019,haveincreasedsecurityaroundelectronicpayments.PSD2hasledtofurtherimprovementinverifyingconsumeridentitiesandtheiraccounts.Sincethesechangeshavebeeninfulleffect,fraudratesinEuropehavefallen

by70%andapprovalrateshavesteadilyincreased,accordingtoMastercard.

Butevenwithoutregulatoryaction,businessesareactivelyfightingfraudusingtoolsdevelopedinrecentyears.

Multifactorauthentication(MFA):Askingconsumerstousemorethanoneformofauthenticationtoaccuratelyverifytheiridentitycanbeextremelyeffectiveinblockingmostautomatedcyber-attacks,22bulkphishingattemptsandeventhree-quartersoftargetedattacks.23However,itmayrequireacustomertokeyinacodesenttotheir

emailorperhapsanswerasecretquestion.

SevenpercentmorebusinessesareconsideringintroducingMFAin2024thanthosewhointroduceditinthepast12months.

Encryption:Byencryptinginformationwhileitstransferredfromonesystemordevicetoanother,businessescanpreventfraudstersfromaccessingdataorcorruptingfiles.Ifthedataisinterceptedintransit,itisscrambledandunusable.Thecarddataisdecryptedonlyonceitreachesthemerchantprovidersothetransactioncanbeprocessed.

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GlobalPayments2024CommerceandPaymentTrendsReport

NetworkTokenization:Networktokenizationisavitalpartofsecuredigitalpayments,revolutionizinghowsensitivepaymentdataisstoredandmanagedbymajorcard

networkslikeVisa,Mastercard,DiscoverandAmericanExpress.Ithelpsenhance

security,streamlinepaymentprocesses,boostapprovalratesandreducetransaction

costs,positivelyimpactingconversionandrevenue.Networktokensarelinkedto

specificcardnetworks,notacquirersorthirdparties,andcanbeupdatedifcard

informationchanges.O