Data Snack: Businesses view digital payments favorably, but are wary of associated risks
- Businesses are adopting digital payments in increasing numbers, motivated by rising consumer demand and the promise of operational efficiencies.
- With digital payments, however, businesses also open themselves up to new risks. Over the last five years, the FBI reports that cybercrime losses in the US amounted to $18.7 billion.
According to the World Bank, two-thirds of the world’s adult population is now making payments digitally. What’s more interesting is that adoption in developing economies has also grown consistently, claiming a sizable 57% of the global population using digital payments.
The pandemic is generally understood to have been a key driver for the penetration of digital payments. MIT Technology Review acknowledged that in a recent report produced with Visa, although adding that the growth in digital transactions has been followed closely by increasing instances of fraud.
The FBI reports that losses from cybercrime nearly doubled between 2019 and 2021, from $3.5 billion to $6.9 billion. However, the report also listed advancing cybersecurity as one of the key benefits of digital payments, alongside operational agility and customer data technology.
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