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Security is still everything

BPC May 16, 2023 8:21:26 AM

A successful payment system relies heavily on trust. With the rapid digitization of financial services, incumbents are often seen as safe and secure, but they must also prioritise customer experience. Finding the right balance between security and user experience becomes increasingly difficult as IoT devices and embedded payments become more commonplace. The Covid-19 pandemic further complicates matters, having accelerated both digital payments and cybercrime. In this post, we will explore the challenges faced by payment providers and how they can maintain trust while delivering an exceptional customer experience.

The Dilemma for payment providers

The rise of digital payments and e-commerce has paved the way for incumbents to be seen as safe and secure. However, putting customer experience at the heart and centre of their operations creates a potential dilemma. Ensuring seamless transactions while maintaining robust security measures can be a challenging task, especially with the growing number of IoT devices and embedded payments.

The Covid pandemic has played a significant role in the shift to digital payments, but it has also resulted in a surge in cybercrime. The average value of attempted fraudulent purchases increased by 69% YOY in 2020, with USD1$ trillion lost. Payment providers must adapt to these new threats while simultaneously enhancing their user experience.

eKYC and AI/ML solutions

One way to strike the right balance between security and customer experience is by implementing eKYC (electronic Know Your Customer) processes, which have become popular with new digital-first players. Artificial Intelligence (AI) and Machine Learning (ML) can be used to check the authenticity of an identification document, while biometrics and liveness detection can quickly authenticate a person and authorise subsequent access. These advanced technologies not only streamline the onboarding process but also provide a more secure foundation for digital transactions.

Robust data collection and transaction monitoring

Having robust data collection and transaction monitoring tools in place can help minimise the risk of fraudulent activities. These tools include identity and access management, data encryption, machine learning-enabled data security, and threat detection services that analyse incidents and provide insightful analysis. By combining these tools, payment providers can proactively identify potential threats and address them before they escalate, all the while maintaining a seamless user experience.

Data privacy and regulatory oversight

Another consequence of digital transformation is the vast amount of data produced, exposing institutions to risks concerning data privacy. Regulators have taken note of this and are tightening their oversight, ensuring that payment providers adhere to strict data protection standards. By complying with these regulations and implementing strong data privacy measures, payment providers can further foster trust with their customers.


As the world becomes more interconnected and digital payments become the norm, payment providers must find the right balance between security and customer experience. By leveraging AI, ML, and eKYC processes, payment providers can enhance their security measures while maintaining a user-friendly interface. Robust data collection and transaction monitoring tools can further minimise risks, while compliance with data privacy regulations will ensure customers' sensitive information remains protected. In this rapidly evolving landscape, trust will continue to be a critical factor in the success of payment systems, and providers that strike the right balance will ultimately thrive.


Download the Report Five Critical Payment Lessons from the New Economy, created in collaboration with Kapronasia.

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