Total number of transactions during Summer months by Chinese consumers grows 139% in the UK
Key stats (all data is record of spending through the Alipay app):
The UK and European market:
- Globally, average total spend per user increased 43% to RMB 2,955 (approx. USD 432) from last year’s RMB 2,073 (approx. USD 303). The United Kingdom was among the top ten countries for highest average spend per Chinese consumer, with 4,357 RMB spent on average between July 1 and August 31 2018. This marks a 25% rise on the same time-frame last year and is almost double the average spend in Summer 2018 globally.
- European countries accounted for more than half of the Top 10 countries in terms of average total spend per user.
- The total number of transactions by Chinese consumers grew 139% from 2017 in the UK, making it the 15th most popular country globally for transactions.
Yana Geng, head of UK & Ireland Alipay commented: “Chinese nationals – particularly the younger generation – are increasingly embracing overseas travel. At a time when many high street stores are struggling with decreased footfall, this creates a huge opportunity for bricks and mortar merchants to appeal to a new customer base, which is growing in volume and spending potential. Merchants we work with have realised that by offering Chinese tourists the seamless shopping and mobile payment experience that they expect at home, they can market their services to this specific demographic and reap the rewards.”
|Top 10 countries by average total spending per user|
|5||United Arab Emirates|
A global view:
- Globally, those born in the 1990s (aged 19 to 28) accounted for the largest portion of spending by Chinese tourists this Summer.
- Average total spending per user was highest in France (RMB 11,386 or approx. USD 1,666), followed by South Korea and Denmark.
- Across the globe, Alipay processed 6 timesas many in-store overseas transactions this summer, compared to the number of overseas transactions last summer.
- Asia continued to lead the Top 10 countries and regions in terms of summertime overseas Alipay transactions, despite growth in other regions. Hong Kong topped the list, followed by Thailand and South Korea.
|Top 10 countries and regions by Alipay transaction volume|
|South Korea||3||South Korea|
- The number of Alipay transactions in Russia increased by over 5000%, as Chinese travelers flocked to the host country for this year’s World Cup.
- Countries in Northern and Western Europe, including Denmark, Luxembourg, Norway, Sweden and Switzerland, recorded double-digit growth in terms of Alipay transaction volume.
|Top 10 countries by Alipay transaction volume growth
(Summer 2018 vs. Summer 2017)
- Of the 80+ airports that support instant tax refunds via Alipay, airports in South Korea recorded the highest amount of tax refunded, followed by airports in Europe.
*The two-month summer holiday fell between July 1 and August 31 in both 2018 and 2017.
Covid-19 and the rise of remote payment fraud: how do we catch a digital thief?
By Evgenia Loginova, co-founder and co-CEO of Radar Payments
Covid -19 is finding different ways to hurt our finances – and like the virus, the threat is invisible.
Each time we tap our payments cards or make a purchase online, there’s always a risk of getting caught out by a digital fraudster. Yet during the global pandemic, the issue has not only escalated, but the ways in which people are conned have changed to reflect new social distancing and lockdown behaviours.
Indeed, the crisis has transformed the way we buy and shop – and those that are being targeted most are the millennial generation.
What are we doing differently?
It’s all down to the way we are interacting with service providers.
Since the World Health Organisation issued a pandemic in March, global payment fraud went up 5% with 100 million suspected fraud attempts from the period between March – April.
According to TransUnion, the firm analysing the data, billions of people around the world have been forced to spend time at home, which has led to industries such as financial services, ecommerce and healthcare to experience disruption in ways that have not been seen for generations.
This is due to the spike in online transactions, as more people adjust to the new normal of spending less time at the shops and more time doing everything on their digital devices. And with so many transactions shifting online – fraudsters are spending more time there too. These culprits are fully remote and are always on the lookout for vulnerable victims – as well as vulnerabilities within the payment systems.
Digital savvy criminals
Businesses that come to grips with the problem will manage to stay afloat – but they won’t be able to do it without fraud prevention tools that can identify suspicious activity without adding friction to the customer payment experience. In other words, customers must be protected from theft – as well as the truth. They shouldn’t even know that they’re under attack in the first place. It’s all about prevention- or at least as much as what technology can provide.
Without some technological intervention, there won’t be prevention, as companies simply cannot keep up with the proliferation of digital thieves. Culprits are operating individually or in criminal gangs or both – and usually in countries that are often forgotten by global leaders. For example, the telecommunications sector witnessed a 76% increase in card fraud a month after the global pandemic was declared – and the top country for suspected fraud origination was Timor-Leste – how many people even know where that is? (East Timor – formerly part of Indonesia, if you must ask!). Financial services saw an 11% increase in identity theft that same period – with most suspected culprits based in war torn Syria.
Despite their location, fraudsters are quickly adapting to consumer behaviour, and finding ways to attack. With less in-person transactions taking place, criminals are doing things like infecting online points-of-sale with malware that enables them to skim credit card details of previous customers.
From our experience with our fraud detection networks the numbers point out that missing card fraud, in particular, has shot up by 70% over the past few months. This is where people’s card details are being used by criminals to make purchases, when they are not in possession of the card. They’ve just stolen the numbers and additional critical security information such as expiry date and CVC2/CVV2.
Identity theft is also on the rise, as well as phishing and social engineering attacks. For example, in the UK alone there’s been a rise in criminals impersonating trusted organisations like the NHS or HMRC to trick people into going online and paying for services that are fake or giving away their money and information to charities and other organisations that are fake.
Local councils in Britain have noted a 40% increase in reported scams since the start of the pandemic, while Citizens Advice believes one in three people have been targeted by a Covid scammer.
This is a problem that is too big to ignore. The moment the fraudsters have your payment details – whether they’ve stolen it or you’ve given it to them under false pretences, the problem leads to losses for the victim and the businesses and organisations too.
With Covid and lockdown, fraud has gone fully remote and everything from e-commerce and digital banking has been a target for abuse.
In this ‘new normal’ world we find ourselves, the prevention of suspicious transactions through customer profiling and enhanced analytics, use of AI and machine learning models becomes very important.
Fortunately, digital theft is now being taken seriously. Spending on security has skyrocketed in recent years, and the sector supplying protection predicted to grow by $6 Trillion by 2021.
Businesses that survive the pandemic must be able to anticipate and strive to block 100% of the digital theft they encounter. But to win the war against these online criminals they require a robust security strategy.
Here are some tips to consider.
Security policies should be enforced internally and across payment channels and distributed networks. This includes the core and cloud networks as well.
Security gaps should be closed. A lot of risk can be mitigated by performing regular checks and plugging security holes, settling on a unified security framework based on interoperability, centralising visibility and control, segmenting the network to restrict the fluidity of malware and high performance, and deep integration.
Invest in AI capabilities. Artificial intelligence possesses the sophisticated power to replicate the analytical behaviour of human intelligence, as well as enable decision-making in real time and offer predictive security notifications.
Investing in AI based security systems can significantly reduce digital attacks and spot suspicious activity. The best ones are integrated with artificial neural networks (ANN), which combined with deep-learning models, can speed up data analysis and decision-making. It also enables the network to nimbly adapt to new information it encounters in the network.
Prevent fraud in online and then investigate. It is crucial to stop fraud before it happens. As most of the payments became remote, reaction should be super fast: high-risk transactions should be declined, low-risk passed with no friction and suspicious challenged. This raises the importance of finding the balance between customer experience and risk mitigation as never before. And even with AI and enhanced analytics for complex cases an expert with natural intelligence should be equipped with all needed information for relevant and adequate decision-making.
Digital crime won’t disappear as long as there’s an opportunity that criminals can exploit. As the world braces for a new wave of lockdown measures, businesses operating in the online sphere must remain vigilant and prepare for more attacks – or face losses that could be impossible to recover from during these challenging economic times.
Seven easy ways to maximise online sales by expanding your marketplaces
By Nate Burke, CEO and Founder of Diginius, a UK provider of proprietary software for digital marketing and ecommerce solutions, shares seven ways ecommerce businesses can leverage tools and platforms to quickly expand their marketplaces to maximise sales opportunities.
By now, the rise of ecommerce due to shifting consumer habits in recent months is no secret to anyone. But as an increasing number of businesses experience rapid growth and traffic on the digital channel, scaling-up practices to keep up with demand is key.
- Raise awareness
With an increasing number of retailers joining or expanding into online marketplaces, businesses can expect to face greater competition. With this in mind, online advertising should form part of any brand’s digital marketing strategy.
Pay per click (PPC) advertising in particular is a useful way to raise brand awareness and drive traffic, conversions and sales regardless of whether the brand has a new or an established online presence.
But the advertising mediums you choose to use must align with the business’s commercial objectives and operational capabilities in order to generate a return on investment. For instance, ads should be placed in channels that will reach the target audience, whether that be Google search results or in the display network, for example, as well as in languages the website supports and the company couriers can fulfil to.
And with an effective management and monitoring tool, you will be able to maximise the performance of your digital advertising activity to drive the best sales results.
Volume management is essential to any business looking to expand its marketplace operations, but it can be difficult to identify early on when ecommerce integration is needed. However, issues such as keeping up with sales levels, inventory counts or even hours upon hours spent on manual data shifting should start ringing alarm bells for any business owner.
And by integrating your website to your other online sales channels and back-end systems, you will start to gain a number of noticeable benefits. Reduction in human errors, accurate inventory management and increased sales channels, without losing operational efficiency are just some of the topline benefits business owners will begin to experience.
In fact, without integrating stock and price data, you will not be able to expand to multiple marketplaces, as those such as Amazon require very high levels of accuracy which without, your account will be suspended. With orders coming in from multiple sales channels, it is generally not feasible to keep accurate counts in the different channels without automation.
As your ecommerce grows, there will no doubt become a time when current systems and processes become highly inefficient to your operations. Manual, repetitive tasks become laborious and can lead to disaster with overworked and unenthused employees tapping away at keys when they’d rather be strategising or working new leads.
Automation can churn things like inventory management, lead generation and strategy and decision making into self-fulfilling automated tasks. As you automate basic items like price updates, order inputting, returns and stock updates, you can then move into the second phase – automation of updated advertising algorithms based on margins, stock levels, competitor pricing and related factors, all of which drive efficiency and a competitive edge. Invoicing and financial data can be moved paperless and customer service processes can be automated or streamlined in a variety of ways.
The key in the automation process, is to start with a solid foundation of your website and finance system to fully automate order flows and marketing information. Following this, you can then continue a relentless cycle of manual testing, which will determine what works and what is truly repetitive on a daily or hourly basis, rather than trying to automate tasks that you may only perform from time to time.
- Own website/marketplaces?
While some businesses only focus on their website and others sell solely on Amazon/Ebay, a robust approach across the major channels that customers use tends to drive more value and be a more sustainable approach for any business.
For example, if a company only sells in the marketplaces, it is common for Amazon to suspend an account for not hitting performance metrics, which causes a major disruption in cash flow and sales. Additionally, the marketplaces tend to restrict access to the customer, so it is not possible to market directly to your customers.
Consumers that come and purchase from your website develop a relationship with your brand, are easier to communicate with in the sales and delivery process, and you can continue to market with email and other methods for a higher lifetime value per customer. Additionally, the larger buyers will tend to prefer to deal with you directly rather than through a marketplace.
However, particularly as you expand out of your home country, digital marketing can be costly to run and cultural differences, languages and currencies difficult to manage at small scales.
Therefore a blended approach of digital marketing to your website and marketplace expansion tends to reach more customers efficiently and faster, which you can adjust as you grow and master different areas of digital sales.
- Multi-channel approach
One of the best ways to scale-up a retail business is to adopt a multi-channel approach. This may include a mix of various ecommerce sales channels as well as a physical in-store offering, for example.
However, the channels you choose to use must align with the business’s ethos and goals in order for them to be effective in maximising sales. If not, they could end up creating a greater cost than return.
For instance, a downloadable software provider may see more value in investing in online routes than in a bricks and mortar store offering. In this case, the multi-channel mix may include different marketplaces or use of various marketing and communications methods instead.
But either way, a multi-channel approach maximises the amount of touchpoints between a brand and customer and in doing so, the likelihood of the brand sticking in the mind of the consumer is increased.
- Streamlined management processes
When expanding into different marketplaces, a common problem businesses encounter is effectively managing the ramped-up level of activity. But with an insights platform, businesses can manage and monitor their digital activity across various channels on a single centralised dashboard, as well as automatically update prices, stock levels and order management.
This provides a more transparent and holistic view of performance, with data and insights that can be used for reporting and informing future decisions.
Not only does this create greater efficiency, but it also reduces a lot of the admin burden placed on employees, allowing them to focus on other business-critical tasks.
- Customer service
Due to the distance and physical detachment between customers and brands in the online realm, customer service is often overlooked. But, providing high quality customer support should in fact, be a core business activity, especially as the brand and consequently, the customer base, grow.
In doing this, you will keep both new and existing customers satisfied. This can encourage loyalty, repeat purchases and positive word of mouth, which can then be spread through customers’ personal social media networks to generate greater traffic and sales for the business.
So, remote customer service providers must be responsive, helpful and well-informed in order to have the desired effect. And to make their jobs that much easier, CRM tools can equip providers with the data and insights required to offer an efficient and effective service every time.
One third of money management tools face closure by the end of the year if they do not embrace open banking
- New research from Yolt Technology Services shows 35% of Personal Finance Managers aren’t using any open banking technology
- Imminent screen scraping ban set to cause major disruption for consumers and businesses with just two months to go
- 1 in 5 PFMs have never even considered using open banking
- 28% cited data privacy as a reason for not adopting open banking technology
An international study of over 1,000 senior professionals in the banking, lending, PFM, investment, and retail sectors by leading open banking provider Yolt Technology Services has revealed that over a third (35%) of Personal Finance Management (PFM) platforms aren’t using open banking technology. These businesses will face an urgent transition when screen scraping is phased out in Europe at the end of 2020 if they are to avoid major service disruptions.
The final leg of PSD2, Stronger Customer Authentication (SCA), comes into effect in Europe on 31st December 2020 and will add an extra layer of security to log-in processes. This will force many banks to withdraw screen scraping facilities, which are currently used by PFMs to automatically extract on-screen data from the bank’s online banking page or app. This data is then used as raw text in the PFM to generate spending insights for users, but is less secure, less efficient, and creates a more cumbersome log in process.
As a result, many PFMs will have to look for alternative methods to gather customer data efficiently and securely, but despite being early pioneers of open banking, the survey showed that 35% of PFMs are not using open banking products and services such as AIS systems. In fact, nearly 1 in 5 respondents (19%) stated that they have never even considered using open banking.
More surprising still is that among those who were using open banking, only half (55%) were using Account Information Services, while over three quarters (77%) were using Payment Initiation Services (PIS). While PIS can deliver significant value for users, enabling settling between accounts or payment into regular savings accounts, its functionality is not a core part of the PFM offering in the same way as AIS.
Among those who haven’t yet adopted open banking technology, 35% of PFMs said it was too early to invest, and 28% named data privacy as the chief reason for not adopting. Despite this, PFMs do still show an above average adoption rate (68%) after being one of the first sectors to take advantage of the technology, compared with the banking and retail sectors, the next highest, on 63% and 62% respectively.
And the adoption of open banking technology is proving to be lucrative for those PFMs that do make the switch. Over 90% of PFMs who keep track of the monetary gains of open banking said that it is worth between £1m – £5m to their business each year, compared with 70% of respondents across all sectors, so there are financial gains to be had. This may be because open banking is central to service delivery for the majority of PFMs, but in other sectors it is a differentiator and its use is optional.
For all of this promise to be realised, there are clear issues to be addressed, but PFMs stand to benefit if they lead the charge.
Leon Muis, Chief Business Officer at Yolt Technology Services, comments:
“As pioneers of open banking, Personal Finance Managers have incredible potential to propel the technology even further – but only if steps are taken now to address the issues our survey reveals. That starts with more adoption – platforms which rely on manual methods of information gathering like screen scraping are not only less efficient, they deliver a worse service for users. To see a third of all PFM platforms using no open banking technology at all is a concern, and one that they will have to deal with sooner rather than later, with the upcoming ban on screen scraping.
“Data privacy concerns are a key reason behind this adoption rate, but this is built on fundamental misunderstandings not only about the technology, but the rules which govern its use. That over a quarter of PFM platforms don’t understand how open banking legislation works is a signal that we need to do better as an industry to champion the benefits of the technology, but also showcase the core safeguards and secure foundations upon which it is built.
“What is also clear is the power open banking has to differentiate platforms, and those which can most effectively implement it stand to benefit the most, both financially and in service delivery. And, with the phasing out of screen scraping coming into effect at the end of the year, PFMs need to act now to better support their customers and avoid being left behind.”
Covid-19 and the rise of remote payment fraud: how do we catch a digital thief?
By Evgenia Loginova, co-founder and co-CEO of Radar Payments Covid -19 is finding different ways to hurt our finances –...
Seven easy ways to maximise online sales by expanding your marketplaces
By Nate Burke, CEO and Founder of Diginius, a UK provider of proprietary software for digital marketing and ecommerce solutions, shares...
Effective financial planning will secure businesses a certain future
By Simon Bittlestone, CEO of financial analytics company Metapraxis 2020 has been an unpredictable year, bringing further volatility to already...
The Bank is Where the Heart Is
By Nick Barnes, Practice Director, Financial Services & Customer Success at JRNI When unexpected events occur, people turn to their banks to...
Will COVID-19 accelerate the transition to banking alternatives
By Gael Itier – CEO & Founder at akt.io The COVID-19 crisis has led us to witness what will be...
Using payments to streamline everyday transport
By Venceslas Cartier, Global Head of Transportation & Smart Mobility at Ingenico Enterprise Retail Once upon a time the only...
WeWALK joins Microsoft’s AI for Accessibility Programme Using artificial intelligence to change the lives of the visually impaired
WeWALK, the smart cane designed for people who are blind or with low vision which is now in use across...
Adoption of tech in private markets lags behind industry trends
Nine out of ten financial institutions have accelerated their digitisation strategy as a result of Covid-19. Yet just 26% of...
Covid-19 disruption drives five new retail supply chain trends
The business disruption caused by COVID-19 has resulted in four out of five (82%) retailers changing their approach to stock...
Remote leadership anxieties
It’s a difficult time to be navigating the complex world of business. Whilst adapting to new ways of working remotely,...