Global E-Commerce Merchants Embrace Real-Time Payments Amidst Easing Fraud Rates
In a remarkable shift, global e-commerce merchants are increasingly adopting real-time payments (RTP), as illustrated by Visa’s 2025 Global eCommerce Payments & Fraud Report. This pivot occurs in a landscape where fraudulent activities show signs of subsiding after several years of growth.
The comprehensive report, derived from a survey encompassing over 1,080 merchants across 38 countries, reveals that 37 percent of merchants are currently accepting real-time payments, with the trend accelerating significantly.
Among those pioneering RTP, nearly 80 percent noted a discernible increase in customer utilization over the past year. Furthermore, almost 90 percent anticipate continued growth in acceptance by 2025.
Interestingly, among merchants who have yet to adopt RTP, a substantial 42 percent express a likelihood of incorporating this payment method within the coming 12 months. This positions real-time payments as one of the preeminent acceptance mechanisms on a global scale.
Despite a surge in transaction volumes, merchants report a notable improvement in fraud metrics. The rate of fraudulent orders decreased from 3.4 percent to 3.0 percent year over year, while order rejection rates fell from 5.8 percent to 5.0 percent, reversing a long-standing upward trend.
However, fraud remains pervasive, with a staggering 98 percent of merchants encountering at least one type of fraudulent activity within the last year. The leading threats include:
- Refund and policy abuse (47 percent)
- Real-time payment fraud (45 percent)
- Phishing attacks (42 percent)
- First-party misuse (39 percent)
- Card testing (32 percent)
While first-party misuse continues to afflict a majority of merchants, its escalation appears to be decelerating. Although 62 percent have reported some increase, the proportion of those experiencing significant spikes—25 percent or more—has dwindled to 24 percent, down from 31 percent the prior year.
In response to evolving threats, merchants are strategically investing in technology. Over half (56 percent) now utilize generative AI tools for fraud management—a noteworthy increase from 42 percent last year. This adoption is projected to approach 80 percent by the close of 2025.
Overall, 63 percent of merchants plan to amplify their financial commitments to fraud management technologies, contrasting with only 49 percent intending to enhance staffing investments. This trend underscores an emphatic shift towards automation and AI-fueled risk management.
Additionally, optimizing payment processes remains a critical objective alongside fraud mitigation. Merchants have identified six vital performance indicators:
- Revenue
- Authorization rate
- Payment success rate
- Fraud and chargeback losses
- Authentication rate
- Cost of payments
To enhance these outcomes, six out of ten merchants are now employing tokenization techniques, primarily to mitigate data breach risks and bolster authorization rates.
Source link: M.economictimes.com.
