In the past few months, the world has changed dramatically due to the coronavirus, COVID-19. Many of us are now required to stay home, protecting ourselves and others from exposure. As a result, many of our daily tasks such as grocery shopping and ordering takeout must be done online to avoid person-to-person contact.
Contactless = The New Normal
Our new normal requires us to keep our distance. Touching germ-ridden keypads, mobile devices, and terminals must be avoided. Food delivery and payments will require contactless solutions.
Delivery
Food delivery was already a rapidly growing industry before the pandemic. Yet, at the writing of this blog post, food delivery spending is 30% higher than normal. More consumers are opting for delivery due to the closure of many restaurants across the country and to protect themselves.
In terms of contactless solutions within delivery, many food delivery companies allow payment inside their apps before the delivery takes place. Consumers are also selecting “contactless delivery” options within delivery applications that instruct couriers to place deliveries on their doorsteps as a makeshift contactless delivery method.
Delivery isn’t just for food either. Uber recently launched a new service, Uber Connect, allowing consumers to send no-contact packages to loved ones across various cities. Uber Direct works in the same way, allowing consumers to receive orders from retailers for groceries, household items, and more.
Payments
Many consumers now see contactless mobile payments as the normal and safe way to pay. They’re using their mobile device to pay for pick-up and delivery orders. Those that must venture in-store are taking advantage of proximity payment solutions to avoid paying with cash or card.
To keep up with consumers’ demands for safe payment solutions, many companies are changing the way they accept payment. Fast food companies such as Burger King are advertising contactless drive-thru services. And grocery chains like Publix are quickly implementing tap-to-pay systems in-store.
Around 27% of small businesses have seen an increase in the use of services like Apple Pay since the onset of COVID-19. Richard Crone, CEO of Crone Consulting, LLC, expects to see contactless payments increase to 10-20% of transactions at stores and ATMs as the result of the pandemic. It’s also evident that services such as PayPal and Venmo will increase as well. According to a recent Mastercard consumer poll , 51% of Americans are now using a form of contactless payment. Needless to say, the consumer shift to contactless solutions is more apparent now than ever before.
Increased E-Commerce Enhances the Potential for Fraud
Unfortunately, an increase in mobile payment and e-commerce means an increase in the potential for fraud. Data from Fortner points to two areas of increased fraud: delivery and promo abuse.
Shipping and Delivery
Customers who receive a product they wish to return will be unable to due to stay-at-home restrictions. Consumers may also take advantage of you by claiming they didn’t receive their order, the order came late or the order was incorrect.
Unfortunately, this often results in friendly fraud via chargebacks. Consumers will request a chargeback from their credit card company, disputing legitimate charges.
Promo Abuse
Many businesses are using promo codes to attract new customers during this uncertain time. Unfortunately, customers may commit fraud by opening multiple accounts to receive and use one-time promo codes. This can result in serious monetary loss for businesses unaware of these tactics.
Combat Fraud With Contactless Delivery and Payments by LISNR®
LISNR® helps companies prevent friendly fraud via our ultrasonic technology solution. Using sound and software to transmit data, we discourage friendly fraud due to proximity authentication. LISNR® technology reduces friction, helps identify bad actors, and works as a valuable signal for fraud departments.
Contactless delivery and payments won’t be going away anytime soon. It truly is the new normal. With LISNR®, you can future-proof your business while keeping the safety of your customers in mind, without sacrificing your bottom line to fraud. To learn more, send us a message.