A Cardiff tech firm has pioneered an innovation which enables the first use of tap and PIN for online payments.
Known as Card-Present over Internet (CPoI), the payment solution, developed by Burbank, enables merchants to securely process card-present transactions in online channels.
The firm said the technology functions exactly like an ‘in-store point of sale' transaction, significantly advancing payment technology and reducing fraud.
Burbank CEO Justin Pike said:
“With CPoI, online shoppers simply tap their payment card against their own mobile device and securely enter their PIN to complete payment, just as they do in-store. The physical card and PIN confirm the true cardholder’s identity, therefore significantly reducing the opportunity for fraud.”
Burbank said that currently online merchants face more than $40 billion annually in fraud and chargebacks, which is when a cardholder disputes a transaction and the merchant is obligated to provide a refund. Payment fraud is growing at a rate of 69% per year, and chargebacks at 52%, it said.
“With CPoI, we are aligning in-store and digital payments. Our goal is to transform e-commerce by significantly reducing fraud and eliminating false positives—issues that have long plagued online sellers,” Justin said.
“CPoI will open up internet purchases to all ages and give consumers the highest level of protection when shopping online, whilst revolutionising online commerce for merchants by mitigating fraud, setting a new standard for secure online transactions.”
Beyond fraud prevention, the company says that CPoI addresses an even costlier problem for online businesses – false positives, where legitimate transactions are incorrectly flagged as fraud by anti-fraud systems.
Justin added:
“These erroneous actions cost merchants $443 billion per year, with 65% of blocked transactions being false positives. Worse still, 41% of affected customers never return to the retailer. With CPoI enabling card-present payments online, merchants no longer need anti-fraud technology, effectively eliminating false positives and improving the customer experience, whilst costing the merchant nothing to deploy.”
