We all need to realise that the world is digitising at a pace much rapid than expected earlier. Unlike before, where internet was a means for just static information reading. Is now a hub for global information exchange and global transactions. All this digital cross-flow also includes payments.
Any one in the industry would tell you, despite the rise in digital transaction in payments. The information used to process those digital payment with is in crisis. This includes your identity particulars and financial information. Concerning the massive data breaches happening globally and the risk of fraud that looms constantly, a question is being asked around. Where does KYC Verification stand in all of this? And how payments should be paired with KYC verification to better address key issues that surround the digital ecosystem. Let’s look at some important reasons to shed light on the matter.
Eyes should be on Payment Fraud
Companies cannot continue being ignorant surrounding payment fraud that is happening easily and rising with the passage of time. For now, payment providers bear the losses incurred with chargebacks that happen against them in order to retain customers and keep them satisfied. But till when? Payments need to be paired with KYC verification in order to mitigate the threats associated with identity and payment frauds and require authentication to be carried out before transaction processing. Reducing the percentage of fraud and continuing financial business growth alongside customer satisfaction.
Addressing problems with no contact
Contactless payment technology is on the rise and facilitating payments is seeing trends in adoption. However, NFC has not entirely taken over the traditional PIN and Chip mediums. This has opened a new way for fraudsters to exploit. The potential areas for interception should be addressed, so fraud can be mitigated entirely and ID verification to be employed where possible to authenticate identities.
Utilize providers already out there
As more and more businesses come online and the need for verification increases. The requirement for KYC verification is on high, and thus there are plenty of KYC operators. Ecommerce platforms and digital businesses should utilize the services offered by them and have them integrated at checkout and transaction processing.
More services are adopting payment functionality-
As more businesses set up their digital presence, more services and platforms are adopting digital payment services to complement their platforms and optimise customer experience. Since more users will use these service to transact, more businesses will be exposed to fraud if no KYC verification is in place. It is sensible to implement new payment system applications with ID verification to authenticate payees before transaction processing to mitigate risks.
The importance of KYC verification cannot be overlooked, where payments represent a perfect application to pair ID verification with. Transaction processing/checkout is a crucial area for commiting fraud and employing identity verification here will mitigate fraud greatly. KYC verification should be sought from dedicated providers who specialise in multi-industry applications and scalable use-cases. In addition to offering services that are globally serviced in all possible languages.
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