Retailers have been slow to adopt omnichannel payments – and to implement fraud protection at a time when digital transaction fraud is expected to grow quickly, according PCM Research and ACI Worldwide.
A minority of retailers have fully introduced omnichannel payments, according their study, Omnichannel payments for merchants: myth or reality? they found that only 21 per cent of the 100 UK, European and North American merchants that took part in the study had completed an omnichhannel payments programme. Almost half (46 per cent) had no plans to do so in the next year.
When asked what tools they’d like to offer as part of an omnichannel payment system, 63 per cent said they were interested in alternative payments, while 53 per cent cited mobile point of sale and digital wallets. When asked about whether their organisation was able to innovate, 50 per cent said they were in the ‘early’ or ‘innovator’ stage, while the other half said they were technology followers. Asked why they were not moving faster into omnichannel payments, the two reasons that dominated were the need to make the business case and to find business backing for the funding required in order to implement.
Fraud and security were key considerations for many traders. Asked whether they had a common set of fraud prevention capabilities across all channels most (53 per cent) said no and 39 per cent yes while 8 per cent were unsure. Forty-two percent said they did not have common payment security across all channels, while 49 per cent did, and 9 per cent were unsure.
The preferred implementation strategy for omnichannel payments had moved from in-house to a hosted SaaS model, likely driven by the increased complexity of payments as well as PCI compliance.
“The path to omnichannel payments is complex and can seem daunting, and merchants are at a crossroads with the number of technology options. However, those that embrace these types of disruptive opportunities to serve today’s anytime, anywhere consumers will come out ahead,” said Andrew Quartermaine, head of merchant retail EMEA at ACI Worldwide. “A frictionless payment experience for the consumer in any channel should be the goal of retailers and merchants.”
ACI Worldwide is hosting a webinar on May 10 at 4pm, BST to discuss its omnichannel payment findings.