Welsh fintech Burbank has developed a solution to bring tap and PIN technology online in a bid to reduce fraud and eliminate false positives.
Named ‘Card-Present over Internet’ (CPoI), the solution is set to “transform” global e-commerce, according to Justin Pike, CEO of Burbank.
“With CPoI, we are aligning in-store and digital payments. Our goal is to transform e-commerce by significantly reducing fraud and eliminating false positives – issues that have long plagued online sellers”, Pike said.
“CPoI will open up internet purchases to all ages and give consumers the highest level of protection when shopping online, whilst revolutionising online commerce for merchants by mitigating fraud, setting a new standard for secure online transactions.”
Burbank highlights fraud and chargebacks as two of the key pain points this solution aims to tackle. According to the fintech, merchants face $40bn annually due to costs from these issues, which continue to grow year-over-year.
Pike explained that with CPoI, online shoppers can tap their payment card against their own mobile device and enter their PIN to complete a transaction. He added: “The physical card and PIN confirm the true cardholder’s identity, therefore significantly reducing the opportunity for fraud”.
The company also notes that online retailers will benefit from improved payment processes by enabling customers to pay online the same way they do in-store.
Burbank believes it may also lead to more purchases, as some customers are wary of entering their details into websites or struggle with online checkout experiences, which Burbank believes have become “convoluted”.
“These erroneous actions cost merchants $443bn per year, with 65% of blocked transactions being false positives. Worse still, 41% of affected customers never return to the retailer,” Pike concluded.
“With CPoI enabling card-present payments online, merchants no longer need anti-fraud technology, effectively eliminating false positives and improving the customer experience, whilst costing the merchant nothing to deploy.”
This development comes as UK financial watchdogs are looking for ways to encourage consumers away from card payments with alternative payment methods. However, this has so far proven to be difficult, with card transactions still dominating in Western markets.
