Economic uncertainty, geopolitical turbulence, and emerging fraud and identity theft threats have left people more cautious when engaging with online payment providers.
Those companies recognize consumers value security through identity verification and are taking steps to meet those expectations, according to comprehensive, independent research Trulioo recently commissioned. The “Finding the payments sweet spot between security and speed” industry report highlights the results of that research into online payment service providers and the consumers who engage with them.
Prioritizing security in payments
It’s no surprise people want security when making payments. It’s equally expected they want fast, smooth experiences. The challenge facing payment companies is finding the right balance between the two.
The research indicates people have become more security conscious and expect some friction when transacting. Consumers no longer view identity verification as unnecessary or inconvenient. Rather, they see it as reassuring evidence that companies take security seriously.
People who use online payment services cited security as their biggest change in priorities when opening online accounts, with 62% saying validating identity and protecting against fraud and identity theft are more important than they were two to three years ago, according to the research. That lines up with the 79% of payment service provider respondents who said security is the top factor in building trust with customers through identity verification.
Searching for agility, resilience in onboarding and identity verification
Payment service providers understand agility and resilience in identity verification can help them respond to shifting markets, emerging threats and changing consumer expectations. The following challenges topped the list of reasons why payments companies see a need for more agility and resilience:
- Cost-of-living pressure prompting more focus on protecting customers
- Evolving consumer needs and expectations
- Increasing user volume
- Turbulent economic conditions that increase financial pressure on the business
- Competitive pressure
- Building and maintaining trust when consumers are on high alert
- Increasing or evolving cybercrime risks
- Pressure to improve and accelerate customer onboarding
- Cross-border expansion adding complexity to digital identity
- Regulatory pressure and compliance requirements
Still, a gulf is emerging in the payments sector between organizations that have identity verification agility and those with rigid processes. Only 24% of organizations are able to anticipate market conditions and have the agility to revise identity verification accordingly.
Payments leaders also recognize the importance of ongoing identity verification. The research shows 86% of those leaders say identity verification needs to be continuous, rather than just a step during account creation.
Positive identity verification outlook for the payments industry
The payments industry is approaching the shifting consumer expectations from a position of strength, with higher consumer trust than many other sectors, including online retail, online marketplaces, government and social media.
When consumers encounter strong, balanced identity verification, their trust in the transaction, the digital service, the company offering the service, and the industry increases. Shifting to a more proactive approach to changing market conditions through agile identity verification can help payment service providers build on that customer trust and enhance business performance.