Electronic transactions: Are we heading for a cashless future?

One year ago, Experian and Mitek signed a partnership agreement to improve digital identity verification processes and to prevent online fraud. One year later, the number of electronic transactions carried out via the platform is striking: 80 million transactions were validated worldwide in the last twelve months alone, which is equivalent to 1.5 million transactions per week.

As well as demonstrating the success of the partnership, these figures indicate positive feedback from the online payments market.

On one hand, certain factors are a response to the growing digital transactions market. For example, the recent modifications to regulations such as PSD2, AML, KYC and GDPR address the growing need to regulate the digital environment in order to guarantee user security and create a single frame of reference at the European level. Another example is the agreement between Experian and Mitek. As part of this partnership, the Mitek solutions Mobile Verify® and Mobile Fill® were integrated into the Experian anti-fraud platform CrossCoreTM, allowing documents provided by users to be authenticated via the analysis of security factors and other characteristics of the document.

As mentioned earlier, these factors are a response to market changes. At the same time, however, they also help to improve user trust in digital payment channels thanks to the increased security and control of financial operations. In turn, this leads to a greater number of digital transactions carried out around the world.

There are other factors at play in this growth. For example, the fact that younger generations —who are more open to making transactions online — have joined the labour force and increased their purchasing power, along with the democratisation of technology, which leads to more affordable devices and better, cheaper Internet connection. However, online trust is one of the most critical elements in the digital payments market.

Another factor worth mentioning is the optimisation of user verification and authentication processes. Currently, the solutions are much faster, simpler and more efficient.

The Mitek solution for verifying digital identity that was incorporated into the Experian anti-fraud platform uses an advanced biometric facial recognition system, which not only increases security but also reduces the time needed to execute an operation. Moreover, it also improves user experience, which translates into a competitive advantage for the company.

Experian also uses advanced analytics of the data obtained to detect potential fraud and suspicious activity without affecting the efficiency of the user verification process.

In sum, partnerships such as that between Mitek and Experian respond to an obvious market need while also contributing to the advancement and consolidation of the digital payments ecosystem.

Both companies were presented at Money20/20 Europe 2019, in Amsterdam. It’s the largest global event where the entire payments, FinTech and financial services industries congregate, to showcase their latest solutions and offer their vision on the future of money.