By Michael De Jongh, VP, Sale and marketing – Judo Payments
The rapid growth of mobile as a first channel for commerce offers challenges and opportunities for accepting payments. The potential for fraud on mobile is high, so what can you do to manage risk?
As we increasingly utilise mobile for so much of our everyday activities, consumers and merchants alike need to be aware of what has changed and what that means for the potential of fraud. Consumers clearly want to buy on mobile but they need assurances that their money is protected. Merchants have to constantly adapt with both technology and legislation to keep ahead of the fraudsters and offer consumer confidence. IP address monitoring, which forms much of the ecom fraud backbone world, is pretty useless as a standalone guard to fraud on mobile. Not only can IP addresses be spoofed but mobile operators often mask IP address ranges and the high availability of public wifi networks means we need to think of other methods. The card schemes are delving into partner agreements with operators to share information on location of device and location of card – At its most basic level, a card in the UK and a phone in the US could point towards a strange pattern of behaviour which could flag a potential fraudulent transaction. But this is far from ideal as a ton of false positives will prevail, leading to both merchant and consumer frustration. The card schemes and the issuing banks often suggest 3D secure, which again stems from the ecom days but on mobile, it is not fit for purpose. Not only can 3DS be potentially hacked but it will kill a merchant’s conversion rates. The merchants that decide to go down the 3DS route feel a false sense of protection as they are taken out of risk exposure but are also denied legitimate spending customers who switch off through the additional layer of friction or worse still go elsewhere. Ask yourself this important question – when building a mobile channel to attract new customers and retain loyal customers are you prepared to accept risk but manage it with a ton of new tools that can help OR do you decide to not manage any risk, push your consumers down to 3DS and accept that your sales will be crushed and app ratings be potentially damaging?
- In some markets 3DS works. It really does. It makes consumers feel confident about their purchase. But mCom is not eCom. Mobile is a new and exciting channel – it needs to be treated in a new way. So what can you do? Starbucks is the most successful mobile app and a load of information on why its so successful has been written about time and time again. In my opinion the success of that app comes down to a few easy to understand factors: Firstly a great brand with great products, secondly Starbucks makes it easy to use and engage. But importantly Starbucks are prepared to manage potential risk and weigh that with how much revenue is generated through this vital channel. With this approach they ensure the consumer journey is compelling and vitally make it secure and seamless without offloading all the potential risk. So what can you do to balance risk effectively? For the most potentially risky transactions consider 3DS but only for a small percentage. For all other transactions look at all the factors, as many as possible including but certainly not limited to: device ID, app store ID and location, longitude and latitude, velocity checks – and the list goes on.
- If we harness all of these data points we can offer an effective real time assessment of all transactions. Fraudsters will continue to try their luck and will continually pick the scab of easy target apps. Don’t let them win. Wake up to mobile fraud before it hurts you. There is a better way.
Sunak to use budget to expand apprenticeships in England
LONDON (Reuters) – British finance minister Rishi Sunak will announce more funding for apprenticeships in England when he unveils his budget next week, the government said on Friday.
Employers taking part in the Apprenticeship Initiative Scheme will from April 1 receive 3,000 pounds ($4,179) for each apprentice hired, regardless of age – an increase on current grants of between 1,500 and 2,000 pounds depending on age.
The scheme will extended by six months until the end of September, the finance ministry said.
Sunak will also announce an extra 126 million pounds for traineeships for up to 43,000 placements.
Sunak’s March 3 budget will likely include a new round of spending to prop up the economy during what he hopes will be the last phase of lockdown, but he will also probably signal tax rises ahead to plug the huge hole in the public finances.
Sunak is also expected to announce a “flexi-job” apprenticeship scheme, whereby apprentices can join an agency and work for multiple employers in one sector, the finance ministry said.
“We know there’s more to do and it’s vital this continues throughout the next stage of our recovery, which is why I’m boosting support for these programmes, helping jobseekers and employers alike,” Sunak said in a statement.
(Reporting by Andy Bruce, editing by David Milliken)
UK seeks G7 consensus on digital competition after Facebook blackout
LONDON (Reuters) – Britain is seeking to build a consensus among G7 nations on how to stop large technology companies exploiting their dominance, warning that there can be no repeat of Facebook’s one-week media blackout in Australia.
Facebook’s row with the Australian government over payment for local news, although now resolved, has increased international focus on the power wielded by tech corporations.
“We will hold these companies to account and bridge the gap between what they say they do and what happens in practice,” Britain’s digital minister Oliver Dowden said on Friday.
“We will prevent these firms from exploiting their dominance to the detriment of people and the businesses that rely on them.”
Dowden said recent events had strengthened his view that digital markets did not currently function properly.
He spoke after a meeting with Facebook’s Vice-President for Global Affairs, Nick Clegg, a former British deputy prime minister.
“I put these concerns to Facebook and set out our interest in levelling the playing field to enable proper commercial relationships to be formed. We must avoid such nuclear options being taken again,” Dowden said in a statement.
Facebook said in a statement that the call had been constructive, and that it had already struck commercial deals with most major publishers in Britain.
“Nick strongly agreed with the Secretary of Stateâ€™s (Dowden’s) assertion that the governmentâ€™s general preference is for companies to enter freely into proper commercial relationships with each other,” a Facebook spokesman said.
Britain will host a meeting of G7 leaders in June.
It is seeking to build consensus there for coordinated action toward “promoting competitive, innovative digital markets while protecting the free speech and journalism that underpin our democracy and precious liberties,” Dowden said.
The G7 comprises the United States, Japan, Britain, Germany, France, Italy and Canada, but Australia has also been invited.
Britain is working on a new competition regime aimed at giving consumers more control over their data, and introducing legislation that could regulate social media platforms to prevent the spread of illegal or extremist content and bullying.
(Reporting by William James; Editing by Gareth Jones and John Stonestreet)
Britain to offer fast-track visas to bolster fintechs after Brexit
By Huw Jones
LONDON (Reuters) – Britain said on Friday it would offer a fast-track visa scheme for jobs at high-growth companies after a government-backed review warned that financial technology firms will struggle with Brexit and tougher competition for global talent.
Finance minister Rishi Sunak said that now Britain has left the European Union, it wants to make sure its immigration system helps businesses attract the best hires.
“This new fast-track scale-up stream will make it easier for fintech firms to recruit innovators and job creators, who will help them grow,” Sunak said in a statement.
Over 40% of fintech staff in Britain come from overseas, and the new visa scheme, open to migrants with job offers at high-growth firms that are scaling up, will start in March 2022.
Brexit cut fintechs’ access to the EU single market and made it far harder to employ staff from the bloc, leaving Britain less attractive for the industry.
The review published on Friday and headed by Ron Kalifa, former CEO of payments fintech Worldpay, set out a “strategy and delivery model” that also includes a new 1 billion pound ($1.39 billion) start-up fund.
“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.
Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.
The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance, all mean the sector’s future in Britain is not assured.
It also recommends more flexible listing rules for fintechs to catch up with New York.
“We recognise the need to make the UK attractive a more attractive location for IPOs,” said Britain’s financial services minister John Glen, adding that a separate review on listings rules would be published shortly.
“Those findings, along with Ron’s report today, should provide an excellent evidence base for further reform.”
Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.
“It’s a question of knowing who to call when there’s a problem,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.
A UK fintech wanting to serve EU clients would have to open a hub in the bloc, an expensive undertaking for a start-up.
“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” Swinburne said.
The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).
“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.
($1 = 0.7064 pounds)
(Reporting by Huw Jones; editing by Jane Merriman and John Stonestreet)
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