If there’s one thing tech, banking and payments pundits and prognosticators agree on, it’s that in 2016, mobile will continue to grow to be the center of our identity and lives. In past decades, people panicked if they “left home without American Express travelers checques” but now, it’s their smartphone.
So let’s look at the impact of mobile on the payments ecosystem, and the fraudsters who are its bottom-feeders.
1. Prediction: In-store mobile payments will finally start to gain some traction thanks to the push from big retailers (like Walmart Pay), but still will be used minimally by end of year. That’s because Walmart Pay, Target Pay and even Starbucks Mobile Order & Pay are less about customer convenience and more about preventing someone else from taking control of the payments ecosystem.
2. Prediction: Regulatory pressures will continue to grow, but will reach a tipping point. Regulations will be counterweighted by operational costs and customers’ rising expectations on the “speed” of commerce, which, by the way, is increasingly mobile. The solution: analytics will play a bigger role in sophisticated anti-financial crime monitoring. Since that requires multiple changes across multiple layers of the ecosystem, this will be a gradual shift.
3. Prediction: Fraud will morph and grow in faster and more unexpected ways, not unlike “zero-day” threats in the cybersecurity world. To keep pace and keep customers protected, organizations will need to respond not with multi-year implementations, but with flexible platforms designed to cope with a variety of unknown fraud challenges.
4. Prediction: Given the speed at which new fraud schemes manifest, we will start to see some innovators move their financial transaction monitoring into the cloud. The cost dynamics and speed of cloud deployment are just too compelling to ignore.
5. Prediction: The meaning of “analytics” will continue to blur and get more confusing. Just a few years ago, only a few people used the word “analytics” in a sentence; now it’s right up there with “disrupt.” The “analytics wannabe” phenomenon will get worse before it gets better.
Agree? Disagree? Tweet at me on Twitter @FraudBird.