Product Brochure: Fraud and Security in Global Online Payments 2016

FRAUD AND SECURITY IN GLOBAL ONLINE PAYMENTS 2016 PUBLICATION DATE: OCTOBER 2016

PAGE 2 GENERAL INFORMATION I PAGE 3 KEY FINDINGS I PAGE 4 - 7 TABLE OF CONTENTS I PAGE 8 REPORT-SPECIFIC SAMPLE

CHARTS I PAGE 9 METHODOLOGY I PAGE 10 RELATED REPORTS I PAGE 11 CLIENTS I PAGE 12-13 FREQUENTLY ASKED QUESTIONS

PAGE 14 ORDER FORM I PAGE 15 TERMS AND CONDITIONS

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PRODUCT DETAILS Title:

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Fraud and Security in Global Online Payments 2016

Market Report

Online Payment

Global, Asia-Pacific, Europe, North America, Latin America, Middle

East, Africa

China, Japan, South Korea, Australia, Taiwan, India, UK, Germany,

France, Russia, Spain, Greece, USA, Canada, Brazil, Mexico, Chile,

Peru, UAE, Iran, South Africa, Morocco

English

PDF & PowerPoint

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€ 1900 (exc. VAT)

QUESTIONS

ANSWERED

IN THIS REPORT

How large will the volume of online payment fraud be in 2020?

Which important trends and innovations emerge in online payment fraud?

How significant is payment security to online shoppers worldwide?

Do security concerns affect the online shoppers’ choice of payment methods?

Which role does security play in the adoption of mobile payments in various countries?

SECONDARY MARKET

RESEARCH

Our reports are exclusively based on secondary market research. Our researchers derive

information and data from a variety of reliable published sources and compile the data into

understandable and easy-to-use formats.

ADVANTAGES Maximum Objectivity

Reliable Sources

Up-To-Date Analysis

Boardroom-Ready PowerPoint Presentations

Guidance For Strategic Company Decisions

FRAUD AND SECURITY IN GLOBAL ONLINE PAYMENTS 2016

SECURITY CONCERNS AFFECT ONLINE SHOPPERS’ CHOICE OF PAYMENT METHODS

Card-not-present transactions are a major source of payment fraud worldwide.

According to a forecast cited in the new report from yStats.com, global online payment

fraud is growing at double-digit rates, with online retail contributing around two-thirds of

the total volume. These developments spur the search for new and better ways to secure

online and mobile payment transactions, resulting in multiple innovations among which

biometric authentication is the current top highlight.

Security concerns affect the choice of online payment methods by consumers as well

as their overall willingness to shop online, according to yStats.com’s research findings. In

countries such as Germany and Spain, security is the aspect of payment methods most

important to online shoppers, and also in the USA the majority of digital buyers choose

security over speed for online payment transactions. Moreover, in Brazil, India and other

countries concern over safety of financial information is among the top reasons preventing

Internet users from shopping online.

Security is also key to the adoption of innovative payment methods, such as mobile

payments. Data privacy and security were indicated as the top two criteria for evaluating

new payment methods by consumers in France, Germany, the UK and the USA, as a 2015

survey cited in the yStats.com report shows. Worldwide, more than 50% of respondents had

concerns about safety of their information when using mobile payment apps.


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MANAGEMENT SUMMARY

GLOBAL DEVELOPMENTS

Overview of Trends in Online Payment Security, September 2016

Value of Online Payment Fraud, in USD billion, 2015 & 2020f

Breakdown of Online Payment Fraud by Segments, in % and in USD billion, 2020f

Breakdown of Innovations that are Expected to Have the Largest Impact on Payment Fraud Prevention in the

Next 3-5 Years, in %, October 2015

Breakdown of the Means of Security Protection for Consumers Making Mobile Payment that are Expected to

Become Dominant by 2030, in %, October 2015

Main Criteria For Adopting Innovative Payment Methods, in % of Consumers in Selected Developed Countries,

by Very Important and Rather Important, June 2015

Perception of Security of Mobile Payments, by Generations, in % of Respondents, 2015

ASIA-PACIFIC

3.1. CHINA

Types of Fraud Encountered in Online Shopping, in % of Online Shoppers Who Encountered Fraud, June 2015

3.2 JAPAN

Breakdown of Chargeback Value, in % of Chargebacks, July 2016

3.3. SOUTH KOREA

Barriers to Using Mobile Payment Services, incl. “Privacy and Security Concerns”, in % of Smartphone Users

Who Do Not Use Mobile Payment Services, March 2015

3.4. AUSTRALIA

Value of Card-Not-Present Fraud, in AUD million, and Share of Total Card Fraud, in %, 2010 - 2015

3.5. TAIWAN

Top 5 Verification Methods Acceptable to Consumers in Mobile Payments, in % of Mobile Payment Users, 2015

3.6. INDIA

Breakdown of Reasons for Not Shopping Online, in % of Internet Users Who Do Not Shop Online, 2015


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TABLE OF CONTENTS (1 OF 4)

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EUROPE

4.1. REGIONAL

Reasons Not to Shop Online, in % of Individuals Who Ordered Goods/Services Online More than a Year Ago or

Never, 2015

Top Locations Where Consumers Would Want to Use Biometric Authentication for Payments, in % of

Respondents, May 2016

Share of Internet Users Who Would Feel Confident that Their Money Is Secure If They Used Contactless

Payments, by Selected Countries, Compared to Australia and the USA, in %, April 2016

4.2. UK

Breakdown of Security Concerns When Paying by Entering Credit/Debit Card Details Online, in % of Internet

Users, 2013 - 2015

Breakdown of Attitude Towards Security of Mobile Payments, in % of Mobile Users, by Age Group, Gender and

Total, 2015

Services that Adults Would be Most Comfortable Using Biometric Identification for, incl. “Authorizing

Payments”, in %, September 2015

4.3. GERMANY

Most Important Criteria When Choosing a Payment Method to Purchase Online, in % of Online Shoppers, 2015

Usage of and Interest in Mobile Payments In-Store and Payments Based on Biometric Identification In-Store, in

% of Consumers, and in % of Retailers, May 2016

Reasons for Not Using NFC Payments, incl. “Security Concerns’, in % of Smartphone Users Who Have Not Used

NFC Payments, April 2016

4.4. FRANCE

3D-Secure Transactions’ Share of Online Card Payment Transactions, in %, April 2012 – October 2016

Fraud Rate by Type of Card Payment, incl. “Distant Payment”, in %, 2015

4.5. RUSSIA

Share of Online Merchants Using 3D-Secure, in %, May 2016

4.6. SPAIN

Breakdown of Aspects Most Important for Payment Methods in Online Shopping, in % of Online Shoppers,

2015

Payment-Related Problems that Led to Cancellation of Online Purchase, in % of Online Shoppers, 2014 & 2015

4.7. GREECE

Most Important Features of Online Shops, incl. Payment-Related, in % of Online Shoppers, November 2015



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NORTH AMERICA

5.1. USA

Share of Online Shoppers Who Would Prefer Payment Security Over Transaction Speed When Paying Online,

by Purchase Worth USD 5 and USD 100, in %, May 2016

Average Annual Spending on Fraud Prevention and Chargebacks, in USD million and in % of Operating Budget,

by Online Retailer Type, 2015

Payment Methods Used in Online Shopping and Payment Methods Perceived as the Safest Way to Pay in

Online Shopping, in % of Online Shoppers, September 2015

Major Concerns Related to Online Privacy and Security Risks, incl. Payment-Related, in % of Households with

Internet Users, July 2015

Reasons for Not Using Mobile Payments, incl. Security-Related, in % of Mobile Phone Users Who Did Not Use

Mobile Payments, 2015

Perception of Security of Mobile Payments, in % of Mobile Phone Users, 2013 - 2015

5.2. CANADA

Types of Financial Fraud Experienced, incl. “Online Fraud”, in % of Victims of Financial Fraud, February 2016

LATIN AMERICA

6.1. BRAZIL

Reasons for Not Shopping Online, incl. Security Concerns, in % of Internet Users Who Do Not Shop Online,

2014

6.2. MEXICO

Available Security and Control Features on Online Retail Websites, in % of Online Retailers, Q1 2015

Chargeback Rate, in % of Number of Authorized Payment Transactions on E-Commerce Websites and in % of

Their Value, by Credit Cards and Debit Cards, Q1 2015 – Q1 2016

6.3. CHILE

Reasons for Not Shopping Online, incl. “Do Not Feel Safe Providing Card Details”, in % of Internet Users Who

Have Not Shopped Online, January 2015

6.4. PERU

Breakdown of Reasons for Not Shopping Online, incl. “Fear to Disclose Information about Bank Accounts and

Cards”, in % of Internet Users, December 2015



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MIDDLE EAST AND AFRICA

7.1. UAE

Share of Payment Card Users Who Experienced Online Credit Card Fraud, in %, and Type of Online Credit Card

Fraud Experienced, in % of Fraud Victims, June 2016

7.2. IRAN

Top 5 Reasons for Not Shopping Online, in % of Respondents, 2012 & January 2016

7.3. SOUTH AFRICA

Key Drivers for Online Shopping, incl. “Safer Ways to Pay”, in % of Online Shoppers, 2014

7.4. MOROCCO

Breakdown of Main Criteria Considered When Shopping Online, incl. “Payment Security”, in % of Online

Shoppers, February 2016

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REPORT-SPECIFIC SAMPLE CHARTS

GENERAL METHODOLOGY OF OUR MARKET REPORTS Secondary Market Research

The reports are compiled based on secondary market

research. Secondary research is information gathered from

previously published sources. Our reports are solely based on

information and data acquired from national and international

statistical offices, industry and trade associations, business

reports, business and company databases, journals, company

registries, news portals and many other reliable sources. By using

various sources we ensure maximum objectivity for all obtained

data. As a result, companies gain a precise and unbiased

impression of the market situation.

Cross referencing of data is conducted in order to

ensure validity and reliability.

The source of information and its release date are

provided on every chart. It is possible that the information

contained in one chart is derived from several sources. If this is

the case, all sources are mentioned on the chart.

The reports include mainly data from the last 12 months

prior to the date of report publication. Exact publication dates are

mentioned in every chart.

Definitions

The reports take into account a broad definition of B2C

E-Commerce, which might include mobile commerce. As

definitions may vary among sources, exact definition used by the

source (if available) is included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts,

rankings, line graphs and tables. Every chart contains an Action

Title, which summarizes the main idea/finding of the chart and a

Subtitle, which provides necessary information about the

country, the topic, units or measures of currency, and the

applicable time period(s) to which the data refers. With respect

to rankings, it is possible that the summation of all categories

amounts to more than 100%. In this case, multiple answers were

possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the

following order: Cover page, preface, legal notice, methodology,

definitions, table of contents, management summary

(summarizing main information contained in each section of

report) and report content (divided into sections and chapters).

When available, we also include forecasts in our report content.

These forecasts are not our own; they are published by reliable

sources. Within Global and Regional reports, we include all major

developed and emerging markets, ranked in order of importance

by using evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data

collection, for example the time of survey and number of people

surveyed, is provided in the form of a note. In some cases, the

note (also) contains additional information needed to fully

understand the contents of the respective data.

When providing information about amounts of money,

local currencies are most often used. When referencing currency

values in the Action Title, the EUR values are also provided in

brackets. The conversions are always made using the average

currency exchange rate for the respective time period. Should the

currency figure be in the future, the average exchange rate of the

past 12 months is used.

METHODOLOGY OF OUR FRAUD AND SECURITY IN GLOBAL ONLINE PAYMENTS 2016 REPORT

Report Coverage

This report covers the global online payment market

with a focus on fraud and security issues. It takes into account a

wide definition of online payment, including payments made in

online shopping and mobile payment, such as remote and

proximity payments.

The report includes data mostly published within the

previous 12 months. The exact date of publication of the source

is stated on each chart. The time period which the data refers to

differs by source.

Report Structure

The global chapter opens the report, featuring an

overview of global trends and innovations, value of online

payment fraud worldwide and the attitude of global consumer to

security of digital payments. The rest of the report is divided by

regions presented in the descending order of B2C E-Commerce

sales.

Within each region, the countries are also ranked by B2C

E-Commerce sales.

The types of information included per country differ due

to varying data availability. These include: information about card-

not-present fraud and chargebacks, attitude of consumers

towards online and mobile payment security, security-related

barriers preventing Internet users from shopping online and

making payments via mobile devices, demand for biometric

identification methods, 3D-secure transactions penetration,

payment-related fraud types encountered by online shoppers.


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UPCOMING RELATED REPORTS

Global Mobile Online Payment Methods: First Half 2016 October 2016 € 950

Global Alternative Online Payment Methods: First Half 2016 September 2016 € 950

Global Online Payment Methods: First Half 2016 September 2016 € 1,950

Asia-Pacific Online Payment Methods: First Half 2016

Europe Online Payment Methods: First Half 2016

September 2016

August 2016

€ 750

€ 950

Global B2C E-Commerce Market 2016 June 2016 € 4,950

Online Retail in Emerging Markets 2016 June 2016 € 3,450

Trends in Worldwide Internet Retail 2016 July 2016 € 1,450

Top Players in Global B2C E-Commerce Market 2016 July 2016 € 950

Company Profiles of 10 Leading Online Payment Service Providers 2015 July 2015 € 2,950

MENA B2C E-Commerce Market 2016 June 2016 € 2,950

Africa B2C E-Commerce Market 2016 May 2016 € 1,950

Middle East B2C E-Commerce Market 2016 May 2016 € 1,950

Latin America B2C E-Commerce Market 2016 March 2016 € 1,950

Europe B2C E-Commerce Market 2016 February 2016 € 2,950

Western Europe B2C E-Commerce Market 2016 February 2016 € 1,950

Eastern Europe B2C E-Commerce Market 2015 January 2016 € 1,950

North America B2C E-Commerce Market 2015 November 2015 € 950

Asia-Pacific B2C E-Commerce Market 2015 October 2015 € 3,450

Southeast Asia B2C E-Commerce Market 2015 September 2015 € 1,950

REPORT

PUBLICATION

DATE

PRICE*

Digital Wallet Providers 2016

December 2016

€ 1,950


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Business

Product Brochure: Fraud and Security in Global Online Payments 2016