mCommerce Trends Reveal Growth in Sales and Fraud; Chargebacks911 Reveals Solutions to Prevent Losses
(PRWEB) August 23, 2016 -- Between 2016 and 2020, U.S. mobile commerce (mCommerce) sales are projected to grow nearly 260%, from $79 billion to $284 billion.(1, 2) Data also reveals rising fraud in the mobile channel: from 2015 to 2016, LexisNexis’ mobile Fraud Multiplier climbed 12%, from $2.08 to $2.33 for every dollar of fraud. Meanwhile, the average percentage of successful fraud transactions in the mobile channel jumped from 26% to 35%.(3) Chargebacks911, a leading dispute mitigation and risk management firm, advises merchants hoping to cash in on the mCommerce boom to be proactive in addressing fraud with dynamic, multi-layered solutions.
BI Intelligence’s recent Mobile Checkout Report illustrates the dramatic growth in mCommerce. In 2014, mobile represented just 11.6% of the United States’ $303 billion in eCommerce sales.(1) This year, mCommerce is estimated to total 20.6% of $385 billion in eCommerce.(2) By 2020, analysts project it will account for 45% of the nation’s $632 billion in eCommerce.(1)
While just 16% of all merchants currently engage in mCommerce, another 32% are considering accepting mobile transactions within the next 12 months. Of large eCommerce merchants, 80% indicate they will accept mCommerce payments within the next year or two.(3) Yet, large mCommerce companies report more attempted and successful fraud than any other channel; on average, they experience 880 fraud attempts each month, and 581 of those attempts—or 66%—are successful.(3)
“When looking at industry statistics, is obvious that consumers’ comfort level with mobile transactions has been steadily growing,” noted Monica Eaton-Cardone, co-founder and chief operating officer of Chargebacks911. “As a result, many merchants are shifting their attention to the mobile channel in an effort to claim a share of the mCommerce pie. However, it’s critical for them to have measures in place to handle the rising fraud and chargebacks that have become a growing threat to mCommerce profitability.”
Not only do large mCommerce merchants experience more successful fraud attempts than other retailers, but the LexisNexis Risk Solutions study also found that they decline more legitimate transactions due to false positives. While the average false positive rate for all merchants was 1 in 5, that figure rises to 1 in 3 for large mCommerce merchants.(3) Eaton-Cardone says these findings demonstrate an urgent need for effective fraud prevention solutions within the mobile channel.
“To maximize mCommerce profitability, merchants need to successfully identify and prevent fraudulent activity. However, they also have to take care to avoid false positives, or they could lose out on current and future sales by turning away legitimate customers,” she explained. She urges merchants to pursue multi-layered solutions, since evidence shows they are effective in reducing both false positives and successful fraud attempts.(3)
Eaton-Cardone also points out that the mobile channel is uniquely positioned to take advantage of biometrics and other advanced fraud prevention tools, since most mobile devices are equipped with cameras, microphones and geolocation technology, and newer devices often have integrated fingerprint scanners.
“By adopting comprehensive fraud prevention solutions that utilize additional transactional intelligence to help validate consumer authenticity, merchants can help not only reduce the impact of fraud, but dramatically reduce the onset of friendly fraud – especially for mobile transactions,” she added.
Chargebacks911 is committed to educating merchants on fraud risks and fraud prevention strategies. As part of these efforts, Chargebacks911 representatives will be presenting at the Retail Risk conference in New York, the IATA World Financial Symposium in Singapore and other forthcoming industry events. Monica Eaton-Cardone is also available for interviews and future speaking engagements.
For more information on Chargebacks911 and its comprehensive risk management solutions, visit http://chargebacks911.com.
About Global Risk Technologies and Chargebacks911:
Chargebacks911 is a division of Global Risk Technologies, which is internationally recognized as a leading provider of comprehensive risk management solutions to the payment processing industry. With offices in Europe and the United States, Global Risk Technologies manages over 200 million transactions worldwide each month. Chargebacks911 is headquartered in Tampa Bay, Florida, and specializes in chargeback mitigation and dynamic loss prevention. Founded by merchants in direct response to rising chargebacks and friendly fraud, Chargebacks911 combines insider expertise with proprietary technology and deep analytics to isolate threats, resolve disputes and maximize revenue. From small merchants to the nation’s largest retailers, today, thousands of businesses rely on Chargebacks911’s scalable, customizable and fully turnkey solutions to achieve sustainable growth and guaranteed ROI. For more information, visit http://www.chargebacks911.com.
1. Toplin, Jaime. The Mobile Checkout Report; BI Intelligence; February 18, 2016. businessinsider.com/the-mobile-checkout-report-how-retailers-and-tech-giants-are-pushing-consumers-12-2015
2. Milnes, Hilary. “Where Mobile Commerce Is Going in 2016”; Digiday; January 5, 2016. digiday.com/brands/mobile-commerce-going-2016/
3. LexisNexis. 2016 LexisNexis True Cost of Fraud Study; May 2016. lexisnexis.com/risk/insights/true-cost-fraud.aspx
Karla Jo Helms, JoTo PR, +1 (888) 202-4614 Ext: 802, [email protected]
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