With 112 billion euros and an increase of 8.5% over one year, e-commerce was boosted in 2020, according to FEVAD (1). This growth has been fueled by the accelerated digitization of retail. Thus e-commerce, which represented only 9.8% of retail trade in 2019, has now reached 13.4%.
The successive periods of lockdown during the year have led to unprecedented spikes in online sales, giving consumers new habits that will last. The sector has, in parallel and logically, suffered an upsurge in fraud and litigation: the DGCCRF, which specializes in the repression of fraud, has recorded a sharp increase in complaints and reports in the e-commerce sector (2).
In this context and more than ever, payment must secure both users and merchants while streamlining the customer experience.
Online payment: security and fluidity of the experience
Merchants must provide a customer experience that is both pleasant and reassuring, in order to retain their customers. Customers are looking for speed, simplicity and security.
This balance between security and the payment experience is sometimes difficult to grasp. To respond to this contradiction, several solutions have been developed. On the e-commerce side, 3D Secure allows payment validation with authentication of the cardholder via banking applications. If security is present, it comes to the detriment of fluidity with a payment that is slowed down and frictions little appreciated by consumers. Version 2 of 3D Secure will gradually reduce these drawbacks. In addition, the one-click or subscription payment formulas will ensure, during subsequent payments, the fluidity and speed of the payment with the recording of the buyer’s card data in a secure environment.
Physical payments spared?
In 2020, France experienced an impressive change in usage in terms of payment, notably with an increase “ spectacular “Contactless”, indicates the Banque de France (3).
By reducing the waiting time at the checkout, contactless payment, which makes it possible to pay “small” sums almost immediately without any contact with the payment terminal, is popular with consumers and represents a boon for merchants. . Nonetheless risky? Yes and no. Card issuers and manufacturers are working to put in place solutions aimed at limiting fraud, particularly in the event of card theft. For example, the secret code is required after 5 contactless payments to ensure that the payer is the owner of the card.
A constant challenge
The DSP2, a European regulation that entered into force in January 2018, aims to strengthen customer protection in a context of increased risk of online fraud. It empowers all players in the payment chain in assessing the risk of fraud during an e-commerce transaction. The 3DS will be triggered and requested from the consumer as soon as this risk is too high, but low-risk transactions will be smoother.
While new technologies – payment by smartphone or connected watch, etc. – promote the variety of payment methods and increase the fluidity of the customer experience, they also represent new vectors of fraud. In a constantly evolving world, operators and manufacturers must therefore remain at the forefront in order to support each innovation, each trend, each new habit, and secure them without the consumer, in search of ever more fluidity, being impacted.
Source: https://www.fevad.com/bilan-du-e-commerce-en-2020-les-ventes-sur-internet-atteinent-112-milliards-deuros-grace-a-la-digitalisation-acceleree- du-commerce-de-detail / Source: https://www.europe1.fr/economie/avec-lexplosion-du-e-commerce-les-litiges-sont-en-hausse-4034672 Source: https: // www .lefigaro.fr / economy / payment-the-use-of-contactless-spectacular-rising-bank-de-france-20200922