New research announcing continued growth in European online and mobile payment markets comparing five major EU territories: the UK; Germany; France; Belgium and The Netherlands, explores differing regional and cultural attitudes towards online and mobile transactions, as well as the use of fraud prevention and management tools by ecommerce businesses.
The UK retailer commitment to online commerce grows
According to a recent European Commission report, the UK had the second highest rates of online sales with around three quarters of consumers (71%) purchasing something online in the last 12 months. That compares to The Netherlands (which was top with 74%); Germany (63%); France (58%) and Belgium (44%).
Mobile is definitely providing the impetus for increase of e-commerce. The growth of mobile-commerce is buoyant in the UK: 12% of all e-sales were made with a mobile phone, tripling from 4% in 2011, and 0.9% in 2010.
Fraud prevention: varying attitudes and practices across Europe
With the continued growth in ecommerce and ever evolving fraud patterns, most ecommerce businesses rely on fraud prevention strategies in order to protect against attacks and maintain and secure sales. However, a worrying 14% across those surveyed in Europe by Ogone had no specific fraud management process in place.
According to the Ogone research, in the UK, ecommerce businesses aspire to complete fraud prevention rather than pragmatism. 80% of UK e-Commerce businesses surveyed were clear that their aim was to eliminate fraud altogether.
Julian Wallis, Head of Sales in the UK and Ireland at Ogone commented: “With the increased opportunity of e-commerce comes the inevitable increased threat of fraud and security issues. Our research shows that in the UK, the attitude towards introducing effective online fraud prevention measures are taken very seriously. UK ecommerce businesses see that hard-earned profits are, of course, impacted by the existence of online fraud. Any ecommerce business wishing to sell their products internationally needs to ensure they are properly protected against payment fraud”.
Only 22% of UK businesses surveyed were happy to rely on shopper authentication such as 3-D Secure (a facility which verifies authenticity by initiating a redirection to the website of Bank/credit card company that issued the card). 34% wanted a fraud management tool that covers the main liabilities, but accepted they may be vulnerable to more complex fraud. As the most fraud conscious Europeans surveyed, 37% of those UK businesses surveyed wanted “the most comprehensive fraud management tool possible to protect my business from complex fraud” This was around double of those in Belgium (18%); France (18%); and Germany (29%) and more than ten times those surveyed in the Netherlands.
- 71% of UK consumers have purchased online in the last 12 months – 2nd highest rate in Europe
- 80% of UK businesses surveyed wish to eliminate fraud altogether
- Only 22% of UK businesses happy to rely on shopper authentication such as 3-D Secure
The full report can be downloaded here: http://www.ogone.com/en/landingpages/whitepaper_fraud
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