With the big story of today being about the UK Budget yesterday, we continued to get feedback from the market with reactions to the story.
Ricky Lee, CEO and Co-Founder of sync., the new smart open banking app shared:
“The contactless limit increasing to £100 per transaction will be a useful tool for many people as it is more convenient, speeds up queues, and limits touchpoints to help stop the spread of Covid-19. But few people have considered the full impact this could have on fraud.
“There will always be fraud, and someone always has to cover the cost of criminal transactions. In Europe, banks usually wash their hands when a customer is a victim of fraud. They say it is the user’s fault for not being more careful. I was completely used to this as I grew up in Spain and I was surprised at how forgiving the UK banks were when I moved here. Any fraudster could pretend that their card was stolen and say their last contactless transactions were carried out by a thief to get a refund. But this refund money has to come from somewhere: insurances, banks, or the retailer. I expect that fraud will go up as a result of the higher contactless limit and there will be a knock-on impact for consumers at some point in the near future.
“Ultimately, a new, more secure payment method will soon come in to take the place of contactless. At sync., we think QR codes are the future. Everyone carries a smartphone nowadays and we can use them as an extra security step. A pop-up can appear for a user to confirm a payment when they’re at the till. If it’s tapped on your phone, the transaction goes through. China and so many countries in Asia have been using QR codes for payments and money transfers for many years and I find the security risk much lower than a contactless payment via a card.
“For now, I think that contactless is a good thing, but it is vulnerable to fraud. That’s why sync. is building new, safer technologies to take the convenience of contactless to the next level.”