Securing Payments, Boosting Profitability – Why Prommt is a Must-Have for Business

Global losses from online payment fraud hit a staggering $38 billion USD in 2023. Projections indicate that total merchant losses could surpass $362 billion USD by 2028, a wake-up call to the potential risks ahead.

As technology advances, so do the strategies of those aiming to exploit it. From data breaches to the rise of card-not-present fraud, phishing attempts to digital skimming, and the looming threat of chargebacks, businesses find themselves navigating a minefield of risks that could jeopardise both their brand reputation and financial stability.

In 2023, over 119 million cards found their way onto the dark web, resulting in an estimated $9.4 billion USD in preventable fraud losses for card issuers, along with a potential $35 billion USD in chargeback fees for merchants and acquirers. By 2030, experts anticipate that card-not-present fraud alone will have a global impact of $49 billion USD.

And it doesn’t stop there. The average cost of a data breach skyrocketed to $4.45 million USD in 2023, marking a 15% increase over the past three years.

But here’s the silver lining: studies reveal that businesses using technology to combat fraud and safeguard customer data are saving an average of $1.76 million USD compared to their counterparts falling behind.

By strategically investing in the right payment technology, businesses can streamline their customers’ payment journeys, radically reduce fraud, costs and administrative hassles, and guarantee fast, secure and compliant transactions. It’s not just about protecting your bottom line amid economic pressures; it’s about ensuring the long-term security and success of your business in an increasingly complex digital landscape.

Ensure Compliance and Reduce Fraud

Prommt is a payments solution that enables secure, fast, frictionless open banking and card payments that follow your customers wherever they are, however they want to pay – via SMS, email, web chat, messaging apps, and can be integrated to your website to provide online payments.

We ensure that your customers’ data is handled in compliance with the UK DPA, EU GDPR, PIPEDA, CCPA and other regulatory standards. The risk of compromised customer information is minimised because sensitive personal data is not directly exchanged between merchants and payers. As card details are tokenised and stored with the payment gateway, there is no need to view or store card data locally.

Prommt’s open banking payments solution, Pay by Bank further reduces fraud, chargebacks and unauthorised access to or misuse of sensitive financial information. Open banking is backed by the CMA 9 in the UK and the EU Payment Services Directive, and is designed to ensure safe transactions.

Pay by Bank is transforming how businesses and customers interact with financial data. There’s no need to share account and sort code numbers, and add payees manually. This is replaced with a simple payment link or an embedded website button. Sensitive payment information is thus made ‘invisible’ and in turn more difficult for criminals to exploit. Customers authenticate payments directly from their banking app, and their personal information is encrypted and safeguarded by industry-standard banking security.

Open banking technology is secure because the banks themselves designed and built the API endpoints, which play a crucial role in verifying account information and facilitating payments between accounts. Originally created for online banking, this technology has had significant investments in security measures over the years. The expertise gained from these investments has been applied to the foundation of open banking technology. Studies indicate a 61 percent reduction in fraud by 2024, thanks to advanced encryption and real-time authentication through open banking APIs.

Enhance Operational Efficiency and Reduce Costs

Prommt is an enterprise-grade solution designed for teams. Our solution excels in team management and offers flexible access control, allowing you to deploy and manage it across numerous locations and internal departments. With live status tracking and insights, you can monitor who has received and interacted with your messages and track payment statuses, whether completed or pending. Effortlessly view and filter all information related to your SMS and email payments through an intuitive real-time statistics dashboard.

Prommt is built with plenty of unique features that significantly reduce payments administration and operational costs. You can easily set up personalised payment plans, manage recurring payments and automate credit control. Businesses can increase payment success rates by setting automated chase paths for failed transactions and presenting alternative payment options to complete the payment. Prommt minimises the risk of human error and reduces the need for manual intervention, ultimately freeing up valuable staff time.

Traditional payment methods like manual bank transfers are time-consuming and entail high operational costs. Merchants typically share their bank details in a PDF, asking customers to set them up as a payee before proceeding to payment. Besides demanding two separate authentications for new payee, customers must input lengthy account numbers and carefully double-check for accuracy. The manual complexities of this process often result in prolonged communication loops within the business. Salespersons need to coordinate with the finance team to ensure payment completion before goods can be dispatched. Furthermore, sharing bank details this way poses a significant security risk, leaving sensitive data exposed to potential misuse by malicious middlemen.

With Pay by Bank, customers no longer need to worry about mistyping account details. In a few simple taps, they select their bank, log in to their mobile banking app, and confirm the payment in a familiar setting. Businesses can enjoy safe, fast, hassle-free payments directly from their customers’ bank accounts. You are able to radically cut costs and protect margins, by significantly reducing high transaction fees, card fraud and chargebacks, and payment operation costs associated with time-consuming bank transfers, drafts or cheques.

Pay by Bank has greatly reduced merchant fees and simplified payment collection for many of our clients including Motorpoint, who have saved over £100,000 in less than 8 months.

With Prommt’s smart payment orchestration controls, businesses can set automated thresholds to present their desired payment method, depending on factors like the value, location or transaction type. For instance, you can opt for card payments for transactions below a specific value and leverage open banking for higher amounts. This strategy allows you to achieve substantial savings on transaction fees and operational costs, while also mitigating card fraud and minimising chargebacks. In the UK, merchants receive payments within seconds, and in Ireland with SEPA, it’s either the same day or the following. With the introduction of SEPA instant, Ireland will soon experience the efficiency of instantaneous payments.

Within two years of its launch, Pay by Bank is now used by over 60% of our clients across Ireland and the UK. The average transaction value (ATV) for Pay by Bank is now £4,040, which is four times the ATV for a Card transaction (£990). We see that card and bank payments co-exist, one does not replace the other. Pay by Bank is instead replacing tedious manual transfers with a slick payer journey.

The Power of Context

As the popularity of open banking payments grows with digitalisation and an open European payments system under SEPA, there is no doubt that fraudsters will follow. This has already started to happen in the form of Authorised Push Payment (APP) fraud.

APP fraud employs social engineering tactics, with fraudsters manipulating customers into approving payments from their accounts. Once the victim has authorised the payment and the money has reached the criminal’s account, the criminal will quickly transfer the money out to numerous other accounts, often abroad, where it is then cashed out. This makes it difficult to trace the stolen money. 

Losses due to APP scams were £239.3 million in the first six months of 2023.

Prommt helps prevent APP fraud within open banking payments by boosting payer confidence and preventing malicious redirection through the power of context. We ensure clear and effective merchant-branded communication with payers every step of the way. This process involves attaching rich context to each transaction, creating a meaningful and transparent experience.

Prommt minimises the risk of your customers being duped into paying for someone else’s order through a series of streamlined measures. Emails originate from the merchant’s domain and maintain their branding. Customers are seamlessly directed to the merchant’s checkout page, where they’re addressed by name. Purchase details and reference data are clearly presented during checkout and in follow-up communications to ensure transparency. Additionally, pre-populated payee details (sort code/account number) eliminate the risk of human error.

We continually improve our strategies based on emerging fraud tactics. As part of the onboarding process, Prommt conducts a comprehensive Know Your Business (KYB) check on new merchants. We advocate for best practices, like advising our merchant clients to verify recipients’ identities with Prommt payment receipts prior to dispatching goods. We also assist merchants in preparing customer-facing explainers, in-store posters and mailers that reinforce the security of the payment process. These safeguards help prevent APP fraud, and provide peace of mind for both you and your customers.

At Prommt, we focus on security, trust and cost-effectiveness. We streamline payment administration, minimise chargebacks, and combat card fraud while cutting operational costs. Crucially, we ensure compliance with data protection regulations. By choosing Prommt, you enhance operational efficiency and create a seamless payment experience that aligns with your brand identity. Prommt is essential for businesses looking to succeed.

Deliver fast and secure, personalised payment requests, by bank or card, in real-time. Book a demo today.