key payments trends in europe

The Never Ending Changes In the Payments Industry

The fusion of all purchasing channels into an omnichannel, the importance of e-commerce and mobile payments rising, the data consolidation driven by regulatory requirements, the evolving fraud techniques and the shift towards recurring business are key payments trends in Europe in 2017. 

The need for better customer recognition, so merchants could manage their omnichannel better, is already changing the payments industry. This is why the differences between in-store and online payments systems are disappearing.

Payment gateways which are already digital are utilizing new platforms in e-commerce and mobile to offer seamless paying experiences in-store as well.

The new privacy regulatory requirements in the EU are forcing financial institutions to approach this new area smartly because fines for improper use of personal data are going to skyrocket.

The transformation of the payment ecosystem in Europe is also going to help create more effective ways of dealing with fraud, necessary since criminals are learning about the new developments just as fast the merchants are.


Talking to Radomír Adamkovič, Head of the Operational and Fraud Risk Sub-department at VÚB, the second largest retail bank in Slovakia, and Tomáš Kmiť, Risk monitoring Team Leader also at VÚB, we found out about the fraud trends and challenges in Slovakia. 

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What are the latest fraud trends in Slovakia?

Tomáš: We recorded only 7 ATM skimming attacks in 2016 (compared to 32 attacks in 2015, and 62 attacks in 2014) in Slovakia, but several banks had problems with new types of ATM attacks, e.g. transaction reversal fraud or "Black box" ATM attacks during the first quarter of 2017. Card not present fraud, i.e. internet transactions, is still the biggest threat for Slovakian banks, where 3D-secure technology is not implemented yet.

How are Slovakia and other European countries similar or different regarding card fraud?

Tomáš: Card fraud trends in Slovakia are very similar to other European countries. The overall numbers of fraud cases with payment cards fell 2 years in row, but many banks have recorded new types of card fraud.

How can risk indicators be used to monitor exposure to fraud?

Radomír: Fraud risk indicators, when set up correctly, can provide a comprehensive picture about a bank's exposure to fraud. It is important to cover all areas, not only overall losses, but also their share in total fraud numbers and sales. Moreover, the share of undetected fraud is another relevant indicator which reflects appropriateness of prevention and detection process. We use fraud detection rates to measure the effectiveness of our fraud risk management.

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