Can QR Codes and Other Technologies Help Resolve Scope of Fraud?

This update explores how QR codes and Real-Time Payments (RTP) are moving beyond simple transfers to become powerful tools for recurring consumer transactions. For retailers, these technologies offer a way to bypass traditional card networks, potentially lowering processing fees and speeding up cash flow. While the primary focus is on international success stories in Brazil and India, the technology is rapidly arriving in Western markets as a method to simplify customer onboarding for financing and subscriptions. The core challenge for operators remains security. As payment speeds increase, so does the risk of instant fraud. Merchants should look for systems that integrate advanced identity verification directly into the checkout flow. The goal is to create a 'frictionless' experience where a customer can scan a code, be instantly verified, and set up a recurring payment plan or credit line without typing in lengthy card details. Using these tools correctly can reduce cart abandonment and lower the overall cost of accepting credit. However, retailers must ensure their tech stack can support 'confirmation of payee' protocols to protect against the rising wave of authorized push payment fraud.

Source: Finextra — Lending

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