Travel payment specialist, Outpacye from Amadeus, surveyed 4,500 travellers across five markets and found a growing demand for improved payment security, as two-thirds of travellers are concerned about payment fraud being on the rise.
The study made clear the increasing importance travellers place on secure payments, highlighting it as a key factor for influencing purchasing decisions, with over 70% of travellers stating that they would choose a travel company based on its strong reputation for secure commerce.
A study by Juniper Research, a research, forecasting, and consultancy agency, found that 46% of all payment fraud Is targeted at the airline industry. This presents a serious challenge for travel companies to prevent security problems without introducing additional obstacles to the payment experience, which can also dissuade travellers from purchasing from a company if it is not efficient.
Jean-Christopher Lacour, senior vice president and global head of product and deliver for Outpayce, said: “It’s clear from this research that there is an issue with the perception of security, which is making it harder to deliver smooth one-click payments. Widely publicised data breaches have reduced consumer confidence, and the industry needs to take proactive measures to rebuild trust.”
One alternative that has emerged is tokenisation, which is when sensitive payment card data is replaced with a secure token as a preventative measure to reduce risk exposure of merchants by ensure the travel companies do not need to store individual traveler financial details.
Strong customer authentication (SCA) requirements, like two-factor authentication (2FA) has also been incorporated for most travel purchases initiated in Europe, usually involving biometrics or a one-time passcode.
Still, the new initiatives have not presented viable solutions yet, with two of three participants claiming that travel companies declined legitimate purchases, even when there were funds, continuing to struggle to accurately identify fraudulent payments.
Overall, the research suggests that even with new measures in place to prevent fraud, the travel industry has yet to find an effective way to deal with the emerging issues.
Source : Aviation Business News
