Visa, FEDCOC launch first Egypt Card Se­cu­rity Week


The Daily News Egypt - - Business -



Global pay­ments tech­nol­ogy com­pany Visa, in part­ner­ship with the Fed­er­a­tion of Egyp­tian Cham­bers of Com­merce (FEDCOC), launched the first Egypt Card Se­cu­rity Week. The theme of the week is stay­ing safe when shop­ping on­line, which high­lights the work of both or­gan­i­sa­tions to pro­tect con­sumers against dif­fer­ent types of pay­ment-re­lated fraud and to sup­port the growth of Egypt’s e-com­merce sec­tor.

Ahmed Al Wa­keel, chair­per­son of FEDCOC, said that the rapid growth of Egypt’s e-com­merce sec­tor is cre­at­ing many new op­por­tu­ni­ties for mer­chants of all sizes and op­er­at­ing in all sec­tors.

“As we look to main­tain this mo­men­tum, it is im­por­tant that we proac­tively ad­dress any is­sues and con­cerns con­sumers may have about this emerg­ing sec­tor of the econ­omy,” he added.

Al Wa­keel noted that this is why FEDCOC is pleased to work with­Visa to launch the first-ever Egypt Card Se­cu­rity Week, which is be­lieved to be ca­pa­ble of play­ing an im­por­tant role in grow­ing the in­ter­linked dig­i­tal pay­ments and com­merce ecosys­tems.

Khalil Hassan Khalil, dig­i­tal econ­omy and tech­nol­ogy gen­eral di­vi­sion chair­per­son at FEDOC, pointed out that the growth of e-com­merce in Egypt is es­sen­tial for in­no­va­tion, job cre­ation, and fi­nan­cial in­clu­sion.

“If we are to fo­cus on the de­vel­op­ment of this mar­ket, then it is equally im­por­tant to pro­mote re­spon­si­ble on­line shop­ping among con­sumers. We sup­port­Visa in this com­mend­able ini­tia­tive and hope to reach out to the on­line shop­pers in the coun­try with ef­fi­cient yet sim­ple self-pro­tec­tion mea­sures, so that they can en­joy a seam­less and se­cure dig­i­tal pay­ment ex­pe­ri­ence,” he added.

To help pro­mote a safe and se­cure pay­ment ecosys­tem, Visa and FEDCOC sur­veyed con­sumers across Egypt to un­der­stand their ex­pe­ri­ences,at­ti­tudes,and be­hav­iours re­gard­ing e-com­merce and card pay­ments.

The Visa com­mis­sioned sur­vey found that over half of the peo­ple in Egypt (53%) are fre­quent on­line shop­pers, with one in ten us­ing ecom­merce sites al­most every day. How­ever, with 47% of peo­ple shop­ping on­line every 2-3 weeks or less, there is a huge op­por­tu­nity for fur­ther ex­pan­sion of the sec­tor over the com­ing years.

Con­sumer goods are driv­ing the pop­u­lar­ity of on­line shop­ping, with elec­tron­ics (64%), cloth­ing (44%), per­sonal groom­ing prod­ucts (34%), and books (33%) be­ing far up of the top ten goods and ser­vices most com­monly pur­chased on­line. Travel and en­ter­tain­ment is the other main driver, with flights and ho­tels pur­chased on­line by more than 40% of peo­ple.

The sur­vey iden­ti­fied re­luc­tance among some con­sumers to pay elec­tron­i­cally for cer­tain goods and ser­vices they buy on­line. For all prod­uct cat­e­gories sur­veyed, there is a 3-13% dif­fer­ence be­tween con­sumers buy­ing and pay­ing for goods and ser­vices on­line, with the trend par­tic­u­larly pop­u­lar with elec­tron­ics, per­sonal groom­ing, clothes/ap­par­els, and restau­rant or­ders. This dis­crep­ancy creates un­nec­es­sary fric­tion in the sys­tem.

Pay­ments by card and cash on de­liv­ery (both 69%) are equally com­mon meth­ods for pay­ing on­line in Egypt. The se­cu­rity of trans­ac­tions when us­ing pay­ment cards on­line is im­por­tant to the over­whelm­ing ma­jor­ity of peo­ple (81%). Many pay­ment card users (52%) are com­fort­able us­ing dig­i­tal pay­ments on e-com­merce sites, while non-users (23%), are more ap­pre­hen­sive. This sug­gests that the more con­sumers use their cards, the more se­cure they feel.

The sur­vey found that when con­sumers are alert while shop­ping on­line, the re­ported in­ci­dence of card fraud is ac­tu­ally rel­a­tively low (at 15%). How­ever, older peo­ple seem to have been slightly more af­fected, with 20% of 46-55-year-olds say­ing they have been a vic­tim of pay­ment card fraud be­fore, com­pared to 12% of 18-25-year-olds.This could sug­gest that the gen­er­a­tion that has grown up in a dig­i­tal world is po­ten­tially more aware of the risks, ac­cord­ing to Visa’s sur­vey re­port.

More than a third of the re­spon­dents (42%) say a bar­rier to them when pay­ing by card on­line is that they want to see the prod­uct first­hand be­fore pay­ing, while the same num­ber choose cash on de­liv­ery be­cause it as­sures the prod­uct will ar­rive.

Con­sumer anx­i­ety about shop­ping on­line are ex­ac­er­bated by con­cerns about un­fa­mil­iar web­sites, with only 30% re­port­ing that they would shop from sites they do not know.

The study sug­gests that one of the keys to ex­pand­ing the e-com­merce sec­tor and in­creas­ing the use of dig­i­tal pay­ments is for mer­chants to of­fer bet­ter web­sites, stronger data pro­tec­tion and a smoother re­fund or re­place­ment pol­icy. More dis­counts and re­wards would also in­flu­ence 67% of re­spon­dents to pay elec­tron­i­cally when shop­ping on­line.

Visa en­cour­ages on­line shop­pers to take mea­sures to pro­tect their cards when shop­ping on­line. For in­stance, by not send­ing their card num­ber and CVV by email or phone, by avoid­ing un­fa­mil­iar web­sites, by not en­ter­ing card de­tails on sus­pi­cious pro­mo­tions that seem too good to be true, and by ac­ti­vat­ing tools likeVer­i­fied byVisa (VbV), which is an au­then­ti­ca­tion tool that en­sures pay­ments are made by the right­ful owner of theVisa ac­count.

Tarek Mah­fouz,coun­try man­ager of Egypt atVisa,said that with con­sumers in Egypt in­creas­ingly trans­act­ing dig­i­tally, the need to build and main­tain trust in the sec­tor be­comes im­per­a­tive. He added that there is noth­ing more im­por­tant to the Visa pay­ment net­work than trust, so to over­come con­sumer con­cerns and un­lock Egypt’s full e-com­merce po­ten­tial, Visa ad­vo­cates a multi-lay­ered se­cu­rity ap­proach to tack­ling fraud, with the card­hold­ers be­ing an in­te­gral part of the so­lu­tion.

“Equally, there are a num­ber of rel­a­tively sim­ple steps mer­chants can take to build fur­ther trust in the on­line shop­ping ex­pe­ri­ence.We be­lieve the first Egypt Card Se­cu­rity Week is an op­por­tu­nity to achieve both,” he stressed.

An im­por­tant part of Visa’s mul­ti­lay­ered ap­proach isVisaTo­ken Ser­vice, which re­places the tra­di­tional 16-digit pri­mary ac­count num­ber (PAN) with a dig­i­tal “to­ken” for on­line pur­chases and trans­ac­tions ini­ti­ated with mo­bile de­vices.Visa is work­ing to bring to­keni­sa­tion to e-com­merce, which will pro­vide added se­cu­rity to on­line trans­ac­tions by re­mov­ing card­hold­ers in­for­ma­tion from the mer­chant en­vi­ron­ment.

Egypt Card Se­cu­rity Week is a key com­po­nent of Visa’s on­go­ing ef­forts to sup­port gov­ern­ments across the world move to cash­less so­ci­eties and achieve their vi­sions of cre­at­ing smart cities, and build on sim­i­lar ini­tia­tives in the United Arab Emi­rates (UAE) and South Africa.

Visa’s sur­vey showed that about 53% of Egypt’s peo­ple are fre­quent on­line shop­pers, 10% of which use e-com­merce web­sites on a daily ba­sis

Tarek Mah­fouz, coun­try man­ager of Egypt at Visa

Ahmed Al Wa­keel, chair­per­son of FEDCOC

Khalil Hassan Khalil, dig­i­tal econ­omy and tech­nol­ogy gen­eral di­vi­sion chair­per­son at FEDOC

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