Financial services tech provider Worldpay from FIS has shared a series of fraud prevention tips in a bid to keep marketplace merchants safe during the holidays. According to recent research from Worldpay from FIS, global macroeconomic challenges have caused an increased consumer interest in bargain shopping, resulting in a notable increase in the adoption of online marketplaces.

Moreover, the company believes that this increase in online marketplace popularity, paired with an anticipated rise in fraud and disputes during the holiday season, requires more vigilance among merchants to mitigate potential negative business impacts. Worldpay's Future Shoppers Report reveals that online marketplaces have achieved parity with physical stores in terms of consumer preference, with 77% of individuals having engaged in online marketplace shopping over the past year, compared to 78% in physical stores and 51% on branded store websites. Notably, the Gen X demographic (aged 36-58) leads in marketplace adoption, with 81% having used online marketplaces in the last 12 months.

The report also points out that consumers maintain a desire for brand loyalty, with nearly 40% expressing a preference for direct brand shopping when factors such as price and shipping speed are equalised. Fraud prevention recommendations for merchants Wordplay from FIS officials suggest that merchants adapt to this changing landscape by incorporating a marketplace-like experience into their online offerings, potentially collaborating with brands that share similar values. As consumers approach the holiday season with a more mindful spending mindset, merchants are advised to diversify their online channels and provide a wider array of shopping options to meet evolving preferences.

To address these challenges, Worldpay from FIS recommends: The utilisation of secure ecommerce solutions such as 3DS (3D secure solution).  The prioritisation of excellent customer service, keeping customers informed about order status, and potential delays, and facilitating easy communication for issue resolution.  Requiring signed proof of delivery from reputable delivery companies to the agreed-upon address.  Clearly communicating payment and return terms and conditions. The Future Shoppers Report is based on a survey of more than 5000 consumers across France, Germany, the UK, the US, and China. It emphasises the evolving dynamics of customer needs, and it focuses on the importance of creating shopping environments that cater to individuals with diverse considerations.

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