Accertify Attended Cashless Asia 2022 and This is What We Learned

What We Learned By Attending Cashless Asia 2022

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What We Learned at Cashless Asia 2022

Accertify recently attended the Cashless Asia 2022 Forum and had the opportunity to meet with industry leaders and subject matter experts in the digital payment and transaction space. These experts provided updates and insights on technologies such as Unified Payments Interface (UPI), Blockchain for payments, Global Payment Innovation (GPI), Smart POS and Hybrid Cashless Platform.

Accertify also had the opportunity to attend several sessions and participate in discussions about how these innovations will contribute to creating a cashless world. These are a few of the highlights and takeaways from Cashless Asia 2022.

The Rise of Cashless Services

Banks worldwide are responding to customer demand for cashless services by introducing products and services that enable customers to manage their banking entirely online. During a session about cashless service trends in banking, a leading bank discussed some of the challenges financial institutions are addressing.

In Asia, approximately 50% of the population lives in cities1  and represents 80% of economic activity.  However, accommodating the remaining 20% could be challenging because many locations lack basic infrastructure, good WIFI and Internet service, and low smartphone usage. Other additional problems include providing cashless delivery and finding digital payment methods that offer customer convenience while minimizing fraud. Banks also need to comply with multiple sets of regulations as they vary across the region.

QR Codes

Using QR codes for payments is becoming popular since these codes do not require POS terminals. Banks and regulators support QR Code payments, but they must decide whether static or dynamic QR (rolling code) are best for their needs. Another question to address is if banks and regulators should opt for merchant-presented or customer-presented QR codes.

Why Payment Orchestration is the Wave of the Future

Consumers want to be able to take care of all their needs on a single website instead of juggling multiple applications.

During the COVID-19 pandemic, a leading airline company transformed its payment platform into a payment orchestration platform that enables its 52 million users in Southeast Asia to manage travel and loyalty programs, shop online, do their banking, buy groceries and order take out.

During development and deployment of the Payment Orchestration, the team’s main challenges were payment speed, making payments invisible and frictionless, obtaining cheap acquiring rates for wallets—especially ACH and direct debit, and implementing secure, single sign-on and dynamic challenge solutions. They emphasized the importance of automating processes to provide an optimal customer experience, consolidating operations and leveraging legacy applications to maximize efficiency and strike the right balance between digital technology and human interaction.

How eCommerce Merchants Fight Fraud

ECommerce merchants know it is critical to provide a positive shopping experience as they need to minimize fraud and chargebacks. Striking that balance can be difficult.

During a panel discussion, representatives talked about steps they have taken, or are taking, to find the right balance between providing a good customer experience and fighting fraud.

  • A leading Asian retailer is a cashback reward program that serves Asia and Australia. When shoppers make purchases, they receive vouchers and rebates from participating merchants. The company implemented Pay Later Wallet to encourage customers to buy “big ticket” items such as electronics and appliances and uses dynamic authentication based on risk 3D Secure (3DS) and One-Time-Password (OTP) to minimize fraud.
  • Another leading online fashion site based in the Philippines decided to add flexible payment solutions such as Digital Wallet, Buy Now Pay Later, Bank2Bank and Card Scheme to increase sales. Since they serve six Southeast Asia markets and use 28 payment channels, the risk management team saw many IP mismatches. The team implemented an automation solution that would reduce the amount of manual review that was needed and minimize fraud and chargebacks.
  • A leading Buy Now Pay Later retailer with over 5,000 leading online and offline fashion, beauty, lifestyle, fitness and homeware brand has an in-house machine learning/decision science team. They decided to use dynamic authentication and tokenization to minimize fraud and chargeback risk with their payment service providers. The company’s 3D Secure system is robust, but it is cumbersome for customers. As a result, many customers leave before completing the checkout process.

How to achieve a cashless environment

So, what will be needed to facilitate the adoption of cashless services? First, we need government and industry regulations that support a competitive payments landscape. Therefore, expect to see a lot of public and private partnerships. We could also see incentives for businesses and merchants to adopt cashless systems and for customers to take advantage of them. Solution providers should also provide a lot of education and support for both merchants and consumers.

Are you looking for a partner who can help you implement cashless services, set up a payment orchestration platform or help you reduce eCommerce fraud? Contact us to request a consultation.

  1. World Economic Forum – 4th November 2020 – How has the world’s urban population changed from 1950 to today? https://www.weforum.org/agenda/2020/11/global-continent-urban-population-urbanisation-percent