Description

The US eCommerce market is on a strong growth trajectory. Revenue grew 20% in 2021 to approximately $850 billion. Many of the purchasing trends that emerged at the beginning of the pandemic have become permanent as consumers embraced the ease and convenience of home delivery and curbside or in-store pickups. Frost & Sullivan’s research indicates that the US eCommerce market will increase at a compound annual growth rate of 16% in the 2021-2025 time period.

A surge in online commerce has accelerated merchants’ plans to digitally transform their businesses. However, a digital commerce strategy is bound to fail if not supported by next-generation fraud prevention implementations. A noticeable increase in the number of eCommerce fraud attempts has been reported across different industries, given that card-not-present payments give fraudsters numerous opportunities to steal goods or abuse merchant policies for monetary benefits.

By analyzing various data sources to identify unusual behavior or high-risk transactions through rule- and/or analytics-based methodologies, eCommerce fraud prevention solutions provide the core intelligence essential to helping organizations address fraud and security challenges. Solution providers’ main focus areas are protecting retailers by identifying high-risk transactions and supporting and enabling new service delivery experiences.

Frost & Sullivan has noted a clear preference for integrated solutions that can handle the complexity and variety of deployment requirements for eCommerce fraud, payments processing and optimization, and strong customer authentication (SCA) exemptions particularly for the European market. Vendors must focus on merchants’ total economic impact and demonstrate a measurable return on investment in fraud prevention solutions.

The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in an industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned.

AUthor: Vikrant Gandhi