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BizReport : : June 19, 2018

Report: Apple Pay failing to engage merchants

While mobile payments may be on the increase, the specific mobile payment Apple Pay isn't on the up. That is a key takeaway from new Kount data which found that so far in 2018 merchants accepting Apple Pay have decreased from 48% to 35%.

by Kristina Knight

Google Pay also showed a decline, going from 38% acceptance rate to 25%. However, PayPal acceptance rates increased from 48% to 64% (YoY).

One of the more interesting findings is that merchants are seeing a drastic increase in mobile fraud attempts, with 75% noting that they feel they are seeing an increase in these attacks. Just over half of merchants (52%) are using third party systems to detect fraud and manage their risk.

Nearly two-thirds (62%) are using CVV or card verification value checked and 43% are using fraud scoring. But, only about 5% are using AI/machine learning to detect fraud even though this has been shown to be a strong tool for merchants' fraud-fighting arsenal.

"For the third consecutive year, merchants are showing signs of complacency and even regression in terms of managing mobile fraud risk," said Don Bush, Vice President of Marketing at Kount. "Despite the increase in mobile fraud and the evolution of tactics carried out by criminals to commit fraud in this channel, the number of merchants implementing specialized tools has decreased, demonstrating that merchants struggle  to properly address fraud in the mobile channel including both apps and mobile browsers." 

Kount's Mobile Payments and Fraud Survey: 2018 Report was conducted between January through March 2018; researchers investigated how about 600 merchants in nearly 30 verticals were using mobile payment options.

Tags: Apple Pay, Google Pay, m:commerce, mobile commerce, mobile marketing, mobile marketing trends, mobile payments

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