Quadrant Knowledge Solutions’ Market Insights research provides detailed insights to users about the significance of providing multiple user-preferred payment options.
Earlier, remitting funds from one country to another was a delayed and costly procedure due to the involvement of numerous third parties. Settlements were fraught with risk due to frustrating delays caused by time zone differences. Today, most systems are outdated and struggle to keep up with modern technology. The trend of globalization has opened up a considerable prospect for the financial sector to progress, and the need for a more efficient and cost-effective system is on the rise.
A modern, real-time, and highly secure payment method called cross-border payments has emerged, which eliminates traditional payment systems and reduces risks for businesses. Cross-border payments provide a personalized payment experience for customers, as merchants can offer region-preferred payment options. It also enables merchants to connect with various acquirers, including local ones, leading to higher bank approval rates, lower interchange costs, and greater risk diversification. With the expansion of global commerce, cross-border payments have become an essential aspect of international business transactions.
Pradnya Gugale, Senior Analyst at Quadrant Knowledge Solutions, states “With globalization and the rising use of digital currency supported by blockchain technology, the demand for cross-border payments has also increased. However, this increase is also leading to an increased risk of cross-border payment frauds. To counter this, vendors are employing various techniques such as invisible verification, 3D Secure 2.0, personalized risk assessments, behavioral analytics, and more to safeguard against fraud types like gift card fraud, bot attacks, chargeback fraud, card testing fraud, etc. As per Quadrant Knowledge Solutions’ analysis, a robust fraud prevention strategy should include identity verification, transaction monitoring, risk scoring, machine learning, and data sharing and integration to provide end-to-end protection throughout the payment lifecycle.”
Table of Contents
• Rise of Cross Border Payments
• Growing fraud types due to cross-border payments
• Advanced fraud prevention measures undertaken by vendors to reduce cross-border payments:
• The Final Thought
Key Takeaways:
In the near future, we can expect the following developments:
- Techniques adopted by vendors to combat cross-border payment fraud
- Advanced fraud prevention measures to combat the cross-border payment fraud.
This Market Insights is a part of Quadrant’s BFSI practice.
Author: Pradnya Gugale, Senior Analyst, Quadrant Knowledge Solutions.
Divya Baranawal, Vice President, Quadrant Knowledge Solutions.
