Change Is Afoot for China’s Payment Market
London / Beijing —August 19, 2009 Retail Decisions (ReD), a card issuer and a world leader in fraud prevention and payment processing, today announced – in conjunction with Chinabank Payment (CBP), a leading payment service provider and a prepaid card issuer – that attempted card- not-present (CNP) fraud for China’s airline sector increased from 5% to 8% representing a 60% increase over the last six months.
According to a recent Analysys International report, China’s online payment market will reach 538 billion Yuan (US$78.7 billion) in 2009, an increase of 128% compared with 2008. Analysys International predicts that China’s online payment market will reach 1.67 trillion Yuan (US$244 billion) in 2012. With increasing volumes, Chinese merchants can expect card-not-present (CNP) fraud to increase dramatically in the coming years.
Editor's Note: I hate sounding like a broken record, but if you want to reduce "CNP fraud, eliminate the CNP environment.
Provide consumers with a way to"swipe" their card for online shopping. Problem solved. When they "swipe" their card, it has to be present. When they type card numbers into a box, we don't know where the heck these jokers got the numbers from.
There are two choices. Either provide an environment which enables customers to swipe their card information or continue letting the fraudsters do it.
“The growth in China’s payment market is incredible, however there are significant changes occurring with the government initiatives to shut-down online gambling and adult content sites prior to National Day as well as the impending issuance of the Electronic Payments License.” said Mr. Zhao Guodong, Founder of Chinabank Payment. “The market is becoming tightly regulated and that is why, now more than ever, CBP’s strategic objective of becoming China’s most safe and secure payment service provider is vital. ReD is helping us achieve that objective and together we will continue to have a remarkable effect on payment security in China.” said Mr. Zhao Guodong.
ReD has been working with CBP for more than a year leading up to today’s announcement. CBP deploys one of ReD’s signature products, ReD Shield, the CNP fraud prevention service, which provides a real-time risk assessment to online retailers. Currently CBP has 30 Chinese merchants using this leading edge technology, helping clients to manage international fraud exposure.
“In the Chinese market alone, ReD saves its merchants up to 1 million Yuan (US$146,000) each per month with ReD Shield.” said Carl Clump, Retail Decisions CEO. “CBP has taken the threat of fraud very seriously, implemented ReD Shield and is now reaping the benefits through protecting its merchant base.”
ReD Shield is a fully outsourced, real-time CNP fraud prevention service that significantly reduces fraud while increasing merchants’ revenue. The service combines neural technology with customized, merchant-specific velocity and compound rules coupled with ReD’s expertise, providing a real-time risk assessment recommendation which allows merchants to find the precise balance between preventing fraudulent transactions and maximizing good transactions. Some of ReD’s outstanding Chinese merchants include Air China, CTrip, eLong and China UnionPay Data amongst others.
CBP currently works with 20 banks in China, including Bank of China, Industrial and Commercial Bank of China, China Merchants Bank and Agricultural Bank of China. For the past two years, Bank of China has named the company Partner of the Year. CBP operates as a 3rd Party Payment Provider and is a Prepaid Card issuer. It was one of the first companies to offer online payment services and is consistently viewed as a reliable and secure system. On the prepaid card side, it works with retailers in a range of industries including retail, travel – including airlines and hotels – international trade and online gaming.
For the complete analysis of fraud trends in China contact Retail Decisions.
About Retail Decisions
Retail Decisions (ReD) is a payment card issuer and world leader in card fraud prevention and payment processing. A specialist supplier to the payments industry worldwide, ReD has over 20 years experience in the fraud prevention market. Its blue-chip international clients come from the global telecommunications, retail, travel, petroleum, banking and the broader e-commerce sectors. They include Wal-Mart, Macy's, Bloomingdale's, Sears, Texaco, Shell, Asda, Boots, John Lewis, The Carphone Warehouse, Comet, Travelocity, T-Mobile and Virgin Mobile.
The company has offices in the United States, UK, Mainland Europe, Australia, China and South Africa with representation in India, Japan, and South America. More information about ReD please visit: www.redplc.com. About Chinabank Payment
Chinabank Payment (CBP) [Ebank Online (Beijing) Technology Co., LTD.] is a leading payment service provider based in Beijing. Founded in 2003, Chinabank Payment has provided secure solutions for online payments for ecommerce enterprises and individuals. Clients include Microsoft China, China Unicom, Sohu.com, Nokia, Hewlett-Packard, Elong.com, Kingsoft, Digitalchina, the9.com.cn, Scitechgroup, Hongen.com.cn, Phoenix TV, Xiamen Airlines, CYTS, Holiland Cake, China-pub, Ticketone, Shanghai Teacher University, Beijing Normal University and CERNET Corp. It works with a range of industries including retail, service and high-tech. CONTACTS:
Carl Clump, Chief Executive Officer Gwyneth Pritchard, Head of Group Marketing
Retail Decisions Ltd Retail Decisions Ltd
Tel: +44 (0) 1483 728700 Tel: +44 (0) 1483 794932
Website: www.redplc.com email: email@example.com
April Yang Tammy Tian, Public Relations
Chinabank Payment Ogilvy
Tel: +86 134 6655 4170 Tel: +86 10 8520 6114
email: firstname.lastname@example.org email: email@example.com