Digital identification when certain transactions take place in the digital environment is an unavoidable process that has so far been solved on the fly, and often through different phases and times. Now, more than 88% of the population is aware of the need to adopt a single digital identity for payment authentication, whether at a domestic level (28%), at a regional level (30%) or even globally (30%).
According to Minsait Payments’ Frictionless Payments Security Report, the need to create a digital identity every time a relationship with an app or website begins occurs largely because current identification systems have significant shortcomings: they are not available to the entire population, they are often limited to online public services and, in the case of the European Union, for example, they do not guarantee uninterrupted cross-border access.
Security, ease of use, free of charge and speed, in that order, are the main reasons that determine the choice of a payment method, with nuances in some segments of the population.
From the perspective of industry players, the main motivation for promoting a digital identity is directly related to security, which in turn is related to the simplicity required by large segments of the population. Thus, 45% consider that simplifying and standardizing digital authentication is the main driver of this innovation. Next, 28% consider that the motivation is to facilitate secure interoperability between different platforms and services.
Regarding AI applications in the field of payments, 40% of the agents analysed in the Minsait Payments report consider that it will be used for this digital identity. However, it is not the application that stands out the most: 81% of the participants state that the main use of AI in the field of digital payments will be security and fraud prevention. This is followed by risk analysis with 52%, process automation with 43% and personalisation with 38%.
Security, a fundamental pillar of any means of payment
Security and fraud prevention are already essential conditions for the adoption of innovations and new payment experiences, attributes that people also consider innate. That is why security, ease of use, free of charge and speed, in that order, are the main reasons that determine the choice of a payment method, values shared by the entire population, although with minor nuances: people over 55 years of age value security more, a quality that is somewhat less important for younger people.
The Minsait Payments Sector Report on Frictionless Payment Security is part of the study that the company presents every year on Trends in Payment Methods, and which is prepared in collaboration with International Financial Analysts (AFI). This document collects the opinions of more than 1000 financial institutions.
of 4,800 banked Internet users from Spain, Italy, Portugal, the United Kingdom and Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and the Dominican Republic).
