Cybersecurity is an area of opportunity that often lies disguised within many merchants as simply an operational consideration. By managing security threats the right way, and with the right partner, cybersecurity can be turned into a significant source of competitive advantage. Joan Larroumec explains
f you don’t use a cybersecurity solution to protect your DCB payments, chances are that about 50% more fraudulent transactions are currently going through. Oftentimes these fake transactions churn quickly by virtue of the fact they were made without the user’s consent. Customer lifetime value is consequently lowered which impairs the acquisition strategy and limits growth and investment.
Now if you already do use a cybersecurity solution, it’s a good first step. Although unfortunately not all DCB (Direct Carrier Billing) cybersecurity solutions are created equal, and it isn’t enough to implement just any solution. Merchants may think that they are adequately protected by traditional solutions, yet these solutions are now obsolete as sophisticated malware attacks, undetectable by all but the most technologically advanced solution, have become an everday occurrence.
The results that can be achieved with a state-of-the-art cybersecurity solution are a game changer, for example clients of Evina were able to both increase their customer lifetime value by 50% and see their complaint management costs plummet by over 80% in just three months following a successful cybersecurity partnership with Evina.
Because distinguishing fake transactions from real ones is hard, most DCB cybersecurity solutions result in a 5% to 10% false positive rate. Just imagine all the lost revenue if your DCB solution blocked one in ten legitimate transactions by real-world users. That’s why merchants need to be very demanding with their cybersecurity provider. Many of our customers have increased their revenue by 10%, simply by getting rid of the false positives that plagued their previous solution.
The right climate
A great cybersecurity solution is one that has established a climate of trust, opened one-click payments, and thoroughly prevents fake transactions. The key to taking business to the next level has always been to offer the smoothest payment methods to users. That’s why one-click payments are highly valued, when fraud is not involved.
If you haven’t negotiated one-click payments with all your mobile operator partners, it’s probably because they feel it’s the safest option to keep fraud away. Yet, the majority of malware can go through the most complex flows, read text messages and enter pin codes, thus carrying out fake transactions, no matter the payment flow.
Evina has helped many merchants build trust with their MNOs in order to get better flows and one-click payments. When trusted tools are provided, mobile merchants can be confident that there is no fraud, even when one-click payments are enabled.
Several of the merchants we work with have increased their revenue by up to 400% once we helped them convince MNOs to enable one-click payments.
If you have access to one-click payments, without the right cybersecurity partner you may be experiencing high complaint rates.
With great power comes great responsibility, and one-click payments without the best cybersecurity solution generates extremely high complaint rates and thus high complaint management costs. That’s why very efficient cybersecurity is necessary. We have helped many clients reduce their complaint management costs by 80% in less than three months after implementing our solution.
So what are some of the best business practices that merchants should follow to
increase revenue, boost customer lifetime value and reduce customer service expenses?
Take the quiz to find out how much money you could be making from your carrier billing business right now here
Open new traffic sources
At times, merchants have stopped working with certain traffic sources to limit the impact of fraud on their business. Or sometimes, it was even imposed by their MNO partners.
If you’re part of the merchants who have limited traffic sources, it’s most likely because you believe, or your MNO partner believes, that sticking to traffic sources such as Google and Facebook will keep you safe.
That’s only partly true, cybercriminals can easily change their identity and commit fraud through these trusted sources. So limiting traffic sources doesn’t really prevent fraud, but it does significantly limit market size.
Our cybersecurity solution also pinpoints and solves this challenge. Merchants that work with us have been able to open their activity to all traffic sources, because they can rest assured that their traffic is screened and clean.
We have also helped merchants to convince MNOs to lift their ban on multiple traffic sources. With our help, many merchants who used to limit their traffic sources are now able to double these and consequently, double their revenue.
This is just an overview of all the new sources of growth that are possible when the right cybersecurity solution is adopted.
Joan Larroumec is CSO and CMO at Evina