UK consumers are starting to embrace mobile payment, but some users are wary of paying via smartphone because of concerns about the risk of fraud.
To help address such fears, mobile payment provider Zapp has teamed up with Featurespace to provide new adaptive behavioural fraud protection for customers of its banking partners, including Barclays.
Under a five-year agreement, Zapp will deploy a fraud monitoring and alerting system based on Featurespace’s ARIC adaptive behavioural analytics engine to protect users against fraud in real time. The engine is powered by machine learning adaptive algorithms, which can spot subtle changes at the individual account level.
According to Featurespace, a company that specialises in fraud, risk and compliance solutions, its technology enables payment providers to identify and prevent existing and new types of fraud.
By analysing individual patterns of behaviour, Zapp can protect customers from fraud attacks in real time, commented Martina King, chief executive of Featurespace.
The deal comes ahead of the launch of Zapp’s ‘Pay by Bank app’ paymark in autumn 2015, enabling consumers to make payments straight from their bank app on mobile devices.
Welcoming the new agreement, Zapp chief executive Peter Keenan said: “Zapp’s Pay by Bank app will provide a great payment experience that is simple, quick and above all, secure. We need to ensure that payments are trusted by consumers and merchants alike and our implementation of Featurespace’s incredible real-time analytics capability will be essential over the next five years to delivering a great experience, whilst providing some of the highest levels of fraud protection in the industry.”
‘Consumer trust is a huge issue in the mobile payments sphere: users need to know that they are safe to transact and that their money will arrive where the user intended to send it. Ensuring that fraud is minimised across their systems further enhances the reputation of mobile payment providers such as Zapp, removing one of the barriers to consumers adopting mobile payment technology.’
Clare Burman, Associate Director