He said regulation will play an even more significant role than it has in the past, especially for companies dealing with the European Economic Area (EEA) in any fashion.
“PSD2 is shifting the sense of accountability for fraud in the EEA,” he began. “And that’s not just for businesses based in EEA—any business that sells to customers in EEA is impacted. As businesses seek to comply, they risk adding friction and complexity to their e-commerce funnel; our data already shows that high-friction funnels can drive cart abandonment up as much as 30 per cent.”
Wise executives should devote themselves to understanding the details of these regulations, Damri advised. That would allow them to capitalize on exemptions and create a competitive advantage for their business.
Look for cryptocurrencies to increase the amount of fraud in e-commerce, Damri believes. They make bad actors more comfortable with selling information.
“It has created a rapidly expanding marketplace for consumer credentials,” he observed. “And wannabe fraudsters can also buy sophisticated tools to help them cheat and steal. As the pandemic has brought older shoppers online, who are less savvy about protecting passwords, it is now introducing a wave of new fraudsters into the fray.”
This puts added pressure on businesses to take extra steps to protect consumers of all knowledge levels at every key point of their experience on the platform, Damri said.
“Luxury brands with strong consumer recognition will invest more in their own direct-to-consumer experiences, Damri predicted. He explained the acceleration of e-commerce removes their dependencies on traditional retailers and creates opportunities to offer differentiated customer experiences.”
“That includes the sale of limited edition merchandise to their online communities and/or the creation of highly personalized recommendations and experiences via their websites,” Damri said. “These companies are, therefore, taking on more responsibility for striking the right balance between fighting fraud and delighting customers.”