A new whitepaper by myPINpad highlights the growing importance of identity and verification tools and the role of PIN verification as a popular authentication method.
The paper explains some of the problems card schemes, banks, acquirers and merchants face with identity and verification, such as increasing fraud, poor usability and compliance with new payments and banking regulations.
Poor identity and verification processes cost companies money. A recent Experian survey said 75 percent of abandoned transactions were not completed because of lengthy identification and verification processes.
“With soaring fraud figures and consumers increasingly adopting mobile payment technologies, there has never been a greater need for a rationalisation of ID&V,” myPINpad CEO Phil King said. “Even though many innovative authentication solutions are being proposed, most are much less convenient than they seem for consumers.”
“The reality is, a smooth identity verification process is an essential part of successful customer interaction online. This should take place in a manner that inspires trust and minimal consumer disruption, that empowers consumers and gives them peace of mind. A universal standard for ID&V would bring drastic improvements in data security and help resolve a range of regulatory and fraud issues.”
The paper suggests the use of PIN as an identity and verification tool, with some reasons being convenience, use simplicity and ease of implementation.
The full report is available for download here.