Safety and security are most important when shopping online – Tech Wire Asia


Shopping online – a necessity for most during this pandemic, a hobby for many. But what do customers really appreciate when it comes to shopping online?

Booming e-commerce and m-commerce (mobile commerce) markets, such as Singapore, Indonesia, and the Philippines, are seeing huge increases in online sales.

However, a survey by fraud prevention provider Vesta found that merchants and customers are increasingly vulnerable to false denials, fraud and bad payment experiences.

“Our investigation found that safety and security remains a top concern for online shoppers and merchants tacitly expect them to put the right solutions in place,” said Shabab Muhaddes, Vesta, Managing Director, Asia Pacific.

“Not surprisingly, buyers also see multiple verification and authentication issues as a major payment issue. Overall, the results of this survey indicate a clear and urgent need for sophisticated solutions that provide better protection against fraud, generate higher approvals while enabling a seamless consumer payment experience, ”added Muhaddes.

Buying online is only a pleasure when the payment experience is smooth

The Vesta Online Payment Sentiments survey found that almost half (47%) of those surveyed had experienced payment issues in the past 12 months.

Regardless of payment methods, multiple verification and authentication is a major payment problem encountered by one in three respondents (33%); followed by refusals of payment without a valid reason, experienced by one in five online shoppers (22%) surveyed.

Payment frictions can frustrate customers who already buy from multiple brands – and they won’t hesitate to buy from another site that provides a smoother online shopping experience.

Additionally, when businesses show that they can deliver data safety, privacy, security, and ethics with their online programs or devices, consumers will have great digital trust in that brand or business.

Digital trust is important because it separates the wheat from the chaff – that is, reliable services from corrupt or unreliable services.

Almost six in 10 online shoppers (57%) in all three countries would stop shopping from the e-commerce site if they encountered a problem with a purchase.

Over half (54%) of those who encountered a payment issue while shopping online would also notify their family or friends of the merchant or e-commerce site, leading to further potential loss of income for the merchant.

With an increasingly tech savvy population where people seek security in positive reviews, the survey also found that 69% of online shoppers rely on reviews from previous buyers to determine if a site is safe to buy. .

This highlights the impact that a negative payment experience can have on the merchant’s business in a competitive e-commerce industry.

Urgent need for mobile-centric protection must be addressed

Southeast Asia is the fastest growing mobile wallet market in the world, with Indonesia and the Philippines poised to experience continued growth in mobile payments over the next five years.

Six in 10 (60%) of those surveyed in these two countries indicated that they preferred to pay with e-wallets, which is attributed to a large unbanked population and low credit card penetration.

However, among those who have encountered payment problems with e-wallets in the past 12 months, one in 10 (11%) of the two countries has faced a payment refusal without a valid reason, which has loss of income for traders.

While the latest security practices have pointed to MFA (Multi-Factor Authentication) to improve security, ironically, this has been identified as a major issue among online shoppers. One in five (20%) experienced payment issues because of multiple checks and authentications.

Balancing identity verification and the frictionless shopping experience is key

Notably, three in five (57%) online shoppers in Indonesia share retail accounts with friends or family, putting them at higher risk of fraud methods, such as account takeover. .

This is of concern given that Indonesia is the largest e-commerce market in Southeast Asia, estimated at US $ 83 billion in 2025.

In Southeast Asia alone, one in three people was a victim of online fraud last year, 71% of whom were victims of identity theft; 66% of phishing activity and 63% of account fraud.

Fighting fraud is complex and expensive, which is why it is crucial for e-commerce merchants to use sophisticated solutions backed by machine learning to provide protection against fraudulent cases. As such, it would be important for merchants to adopt a payment platform that addresses these issues for a smoother customer payment experience.

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