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The evolution of retail payment witnessed in the last few years has exposed countless challenges to the security of consumer payment data in the financial sector and the economy at large. Shifting consumers’ purchasing decisions can greatly influence today’s digital era laden with data breaches where retailers are being hacked, and payment information of numerous consumers being exposed or fraudulently used.
What retailers now need is a way to improve data encryption with secured data transaction and authentication significantly. With new, innovative technologies keeping the market on its toes, it is no secret that consumers are well aware of data security and the subsequent events than given credit for, and therein lies the issue. As technology opens up a window for payments via smartphones and computers, adopting apt transaction security is crucial for a robust retail payment strategy.
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Retailers will have to accommodate the fruits of modern technology into their existing payment systems to ensure the optimal level of security and consumer data protection through every device. However, a minority of retailers still do not recognize the gravity of fortifying consumer data protection despite the security expectations of the consumers.
It is prime time for the retailers to realize payments are a key component of the retail ecosystem. An ideal approach would be to collaborate with banks, card providers, payment acquirers, and even consumers to evenly share the load of financial data protection. The most effective technology designed to mitigate counterfeit card frauds at point-of-sale (POS) is the EMV-ready terminal.
Sure, the upgrades are expensive, but a worthy investment for the success of a retailer in the long run. With almost all banks launching their mobile applications and ever-changing three-digit CVV numbers, fraudsters find the stolen financial data useless as the retailer requires a generated CVV code prior to authorizing a transaction. That being said, it is imperative that retailers effectively safeguard patterned data and consumer payment credentials in order to ensure a seamless and secure customer purchase experience.
Retailers will also have to keep pace with the ongoing payment market trends and mobile payments to offer their consumers with a wide spectrum of payment options to choose from. Apart from collaborating with banks and card providers, retailers must work with POS solution providers and payment processors to further enhance their consumer data security measures with point-to-point encryption and tokenization.
Though it is crystal clear that digital wallets nowadays leverage tokenization to achieve an effective means of retail online payment security, retailers are able to adopt a modular, layered approach tailored specifically to suit their requirements, striking an optimum security-convenience balance.
Check out: Magnasphere
Top Payment and Card Solution Companies
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