In today’s digital world, businesses that aren’t selling online are missing out. E-commerce is expected to reach $480 billion in sales in the U.S. alone by 2019. We recently surveyed small and medium businesses around the world and found that 89% of businesses that sell their products or services online have seen an average 40% increase in sales.
Businesses need to enter the digital fray with care, though, protecting themselves and their customers against fraud. The growth in e-commerce, as well as increased in-store security measures like EMV, brings with it an even greater risk of online fraud. According to a report by Javelin Strategy & Research, card not present fraud (including online transactions) is expected to be nearly four times greater than point-of-sale card fraud by 2018.
Are small- and medium-sized businesses prepared?
Yes and no. Our survey found that business owners are already aware that prominent safety concerns come with an increased digital footprint.
- Nearly nine out of ten (86%) expressed concern about data security for their business.
- Even more (89%) are concerned about keeping their customers’ information private.
- Yet more than half of the respondents (60%) said they don’t use fraud prevention tools.
- And only 33% report a high understanding of data security for their business.
Selling online is an important next step for them, and we want to help them by offering tools to give these small businesses a piece of the digital sales pie as well as peace of mind.
Today, we launched Simplify Controls, a digital fraud-prevention platform for easily, affordably managing and monitoring transactions. The solution, which will be available through a small business’ acquiring partner, allows small businesses to maximize online sales by letting legitimate orders through and keeping fraudulent transactions out.
Why is this important? Because driving sales – safely and securely – is what it’s all about.
MasterCard commissioned an online survey of approximately 3,000 small- and medium-sized businesses in the United States, United Kingdom, Ireland, South Africa, Brazil, India, Australia and Canada. For this analysis, sole proprietors were removed to receive a more balanced view of the marketplace. The survey was conducted in January 2016.