Cross-generational fears over security are triggering new payment trends that potentially threaten the advent of a cashless society. Rob Crutchington believes it is the perfect opportunity to win back customers by blending compliance standards with secure payment solutions.
Change is all around. Change is the mantra that won a landslide victory for our new Labour Government while in the payment industry, things are changing but not in a way you might think. According to multinational personal finance company Credit Karma, despite years of heralding a cashless society, cash usage is on the rise with 69% of Gen Z using cash more now compared to 12 months ago, while nearly a quarter (23%) rely on cash for the majority of their purchases.
Although TikTok money trends such as ‘cash stuffing’ could be influencing Gen Z to put aside cash to budget and save money, digital fatigue and technology overload as well as real-world fears over privacy and security are also to blame. The latter is particularly true for mobile payments such as Apple Pay and Google Wallets where security fears are highest among Boomers (43%), surprisingly decreasing by only 11%, to 32% among Gen Z users. So, what can merchants and payment service providers do to reverse the trend?
Fight the fear by hitting high standards
The first step to calming security fears is to take the latest version of the Payment Card Industry Data Security Standard (PCI DSS) seriously. Although nothing new, Version 4.0, which was unveiled by the PCI Security Standards Council in March 2022 and became mandatory on 1st April 2024, represents the most significant update to the PCI DSS since its launch 20 years ago. By reflecting changes in the threat landscape it aims to provide the most robust framework yet for protecting merchants and customers using payment cards against cyber threats.
Just like Encoded, PCI DSS Version 4.0 advocates a high degree of flexibility and the freedom to deploy different integrated technologies into card accepting organisation combined with a variety of risk methodologies and business scenarios to meet the rapidly evolving needs of today’s customers and their complex payment requirements.
Version 4.0 throws the spotlight on enhanced validation measures that emphasise transparency and accountability including a mandate for automated log monitoring to save time and reduce human error. Strengthening the authentication capabilities of our payment technology is a key component of Encoded’s product roadmap. Our advanced reporting and automated tools are perfect for facilitating real-time monitoring and response to security incidents.
How to boost payment card security and customer confidence with 3 tech heroes
For a winning customer confidence strategy, choose a payment service provider with the right credentials. Providers like Encoded have achieved the top security standards in the payment card industry for their continuous best-practice processes and technology know-how. As one of the first fully accredited PCI DSS V4, Level 1 payment service providers in the industry, take advantage of Encoded’s proven solutions. Here are the top tech heroes on our list:
1. Tokenisation
2. Gateway and Payment Orchestration
Encoded’s Payment Gateway Services bridge the gap between merchants and acquirers, offering a secure and unified method for omnichannel payments. Step up your game by adding Payment Orchestration to the mix. These all-in-one modern miracle-cures offer a single, dynamic and highly secure platform for managing the entire payment process, from payment authorisation to transaction routing and settlement, irrespective of gateway payment provider or acquirer.
3. Don’t forget MOTO payments
There are many reasons why businesses still need or choose to rely on MOTO (Mail Order Telephone Order) transactions and as consumers rely increasingly on the Internet and cards to go shopping, pay their bills, and manage accounts, telephone card processing is here to stay. The good news is merchants no longer need to decline MOTO transactions and risk losing business for fears over security. Modern Agent Assisted Payment solutions with an added Fraud Prevention Platform allow contact centres to process card payments quickly and cost-effectively without being exposed to sensitive card data.
