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Europe Online Payment Fraud and Security 2019

Europe Online Payment Fraud and Security 2019

Payment Security Regulations Transform the E-Commerce Landscape in Europe

Online Payment Fraud Rises in Europe and Worldwide
The volume of online payment fraud loss is on the rise worldwide, projected to more than double by 2023, compared to 2018. In Europe, online retailers in the two largest E-Commerce markets, the UK and Germany, report detection of an increasing number of fraud attempts. In the UK alone more than one-half of card purchase fraud loss stemmed from E-Commerce as of last year. Consequently, digital buyers remain on their guard and, according to surveys cited in the yStats.com report, many would not purchase from an online store which they believe does not provide a sufficient level of payment security.

Payment Security Regulations to Transform E-Commerce Payments in Europe
The Strong Customer Authentication (SCA) requirements, to apply from September 2019 on, are expected to strengthen the safety of online purchase transactions. At the same time, the spotty level of readiness and awareness of these requirements among merchants and consumers could have a negative effect on the development of E-Commerce in Europe and lead to a considerable loss in economic activity at least in the first year after the regulations take effect.


1. Management Summary
2. Global Developments
Overview of Online Payment Fraud Trends, May 2019
Online Payment Fraud Losses, in USD billion, 2018e & 2023f
Breakdown of Feelings Consumers Have Towards Card Transaction Declines in Online Shopping, in % of Online Shoppers, by Frequency of Online Shopping, July 2018
Breakdown of Most Important Factors in Consumers’ Online Experience, in % of Consumers, 2018
Share of Consumers Who Have More Confidence in a Business That Uses Physical Biometrics for Online Security, in %, 2018
Share of Respondents Who Would be Willing to Use Fingerprint or Other Biometric to Secure Their Payment Details, in %, 2018
Number of Remote Mobile Biometric Transactions, in billions, and Their Share of Total In-Store and Remote Transactions Authenticated via Mobile Biometrics, in %, 2018 & 2023f
Breakdown of The Perceived Level of Security of Blockchain Solutions Compared to Conventional IT Solutions, in % of Senior Executives, March 2019
Top 10 Blockchain Use Cases, in % of Senior Executives, 2018
Spending on Fraud Management Solutions, 2017 & 2023f
3. Europe
3.1. Regional
Overview of Strong Customer Authentication Requirements Under PSD2, April 2019
Overview of The Strong Customer Authentication Perceptions by Industry Participants, June 2019
E-Commerce Merchants’ Readiness to Support Strong Customer Authentication, in %, November 2018
Levels of Awareness and Preparation of E-Commerce Merchants to Strong Customer Authentication Requirements, by SMEs and Large Businesses, June 2019
Share of Consumers Who Are Unaware of the Strong Customer Authentication Requirements for Online Purchases, in %, June 2019
Share of Consumers Who Prefer One-time Passcodes for Authentication, Compared to Fingerprint Recognition, in %, June 2019
Barriers to Buying Online, in % of Online Shoppers, July 2018
Attitudes to Security of Online Shopping, incl. Payment-Related, in % of Online Shoppers, by Austria, Germany and the UK, April 2018
3.2. UK
E-Commerce Fraud Loss on UK-Issued Cards, in GBP million, and Share of Total Card Purchase Fraud Loss, in %, 2013 - 2018
Top 10 Reasons for Shopping Cart Abandonment, in % of Online Shoppers, 2018e
Breakdown of Consumers’ Perception of Whether They Currently Undergo Enough Security Checks When Making an Online Payment, in % of Consumers, 2018
Breakdown of the Preferred Way of Receiving a One-time Passcode to Verify a Payment Transaction, in % of Consumers, 2018
Share of Cross-Border E-Commerce Orders Rejected by UK Merchants Due to Suspected Fraud, in % of UK Merchants, 2018
3.3. Germany
Share of E-Commerce Merchants Who Faced Fraud or Fraud Attempts in Their Online Shops, in %, 2018
Perceived Development of Fraud and Fraud Attempts Over the Past Year, in % of E-Commerce Merchants, 2018
Types of Fraud and Fraud Attempts Faced by E-Commerce Merchants in Their Online Stores, in % of E-Commerce Merchants, 2018
Measures Taken by E-Commerce Merchants to Prevent Fraud in Their Online Stores, in % of E-Commerce Merchants, 2018
Breakdown of Usage of 3D Secure for Credit Card Payments, in % of E-Commerce Sellers, 2017 - 2019
Breakdown of the Perceived Change in Shopping Cart Abandonment Rates After Choosing Credit Card Payment as a Result of 3D Secure, in % of E-Commerce Sellers Using 3D Secure, 2019
Breakdown of Importance of Payment Topics in Merchants’ Payment Strategy Until 2020, in % of E-Commerce Merchants, 2018
Breakdown of Attitude to Paying by Invoice, in % of Online Shoppers, April 2018
Most Trusted Mobile Payment Providers, in % of Consumers, August 2018
3.4. France
Top 5 Services and Obligations of E-Commerce Merchants in 2019 According to Online Shoppers, in % of Online Shoppers, December 2018
Preferred Biometric Authentication Methods in E-Commerce, in % of Online Shoppers, 2019
Breakdown of Main Barriers That Make Consumers Hesitant to Purchase Online, in %, by Total Population and Online Shoppers, June 2018
Share of 3D Secure Payments, in % of Online Card Payments, April 2011 – April 2018
Breakdown of Attitudes Towards Mobile Payments, in % of Internet Users, February 2018
3.5. Spain
Breakdown of Factors Most Important in Online Payment Methods, in % of Online Shoppers, October 2018
3.6. Italy
Fraudulent Transactions’ Share of E-Commerce Sales, in %, 2017
3.7. Austria
Share of Online Shoppers Who Fell Victim to Internet Fraud, in %, and Type of Fraud Experienced, in %, November 2018
Factors Taken into Account by Online Shoppers in Order to Avoid Fraud, in % of Online Shoppers, November 2018
Share of Online Shoppers Who Experienced Internet Fraud, in %, and Type of Fraud Experienced, in %, December 2018
3.8. Switzerland
Share of E-Commerce Merchants Who Faced Fraud or Fraud Attempts in Their Online Shops, in %, 2018
Perceived Development of Fraud and Fraud Attempts Over the Past Year, in % of E-Commerce Merchants, 2018
Types of Fraud and Fraud Attempts Faced by E-Commerce Merchants in Their Online Stores, in % of E-Commerce Merchants, 2018
Measures Taken by E-Commerce Merchants to Prevent Fraud in Their Online Stores, in % of E-Commerce Merchants, 2018

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