The Payment Card Industry (PCI) Security Standards Council is expanding its role to the Middle East, aiming to enhance the security of card transactions in the region. As card-based payments continue to rise, so does payment-card fraud. In response, the PCI SSC has appointed a regional director for the Middle East to collaborate with regulators, financial institutions, and service providers on security initiatives.
The Growing Challenge of Payment Card Fraud
The global volume of card fraud is projected to reach $36 billion in 2024, up from $28 billion in 2020. Although the share of fraud relative to transaction volume will slightly decrease to 6.5 cents per $100, the threat remains significant. Cyberattacks, data breaches, and evolving threats like malware and phishing attempts necessitate a shift in mindset toward security.
Changing Landscape of Payment Methods
While card-based financial transactions still dominate, alternative payment methods are gaining traction. In 2023, card-based transactions accounted for over $30 trillion in point-of-sale and e-commerce transactions. However, alternate methods, such as digital wallets, totaled more than $11 trillion and are growing at twice the rate of card-based payments. Fintech companies globally are also contributing to this shift, with revenue expected to increase from $100 billion to $520 billion by 2030.
Middle East Preferences and Challenges: PCI
The Middle East stands out in this evolving landscape. Consumers in the region prefer digital wallets over traditional cards (60% vs. 27%). In contrast, consumers in the Asia-Pacific region slightly favor cards (43% vs. 38%). As the payments industry grows at an annual rate of 6.2%, financial fraud remains a concern. The Middle East’s unique payment preferences and the surge in ransomware attacks underscore the need for robust cybersecurity efforts.
Collaboration and Mindset Change
The PCI SSC’s move to engage with Middle East stakeholders is a crucial step. By working closely with organizations handling payments, they aim to bolster security across the payment ecosystem. Cybersecurity awareness, threat mitigation, and proactive measures are essential to safeguarding financial transactions in the region. As the payment landscape continues to evolve, collaboration and a security-first mindset are paramount.
Also Read: Deep Dive into Challenges Faced by Fintech Companies in Selecting IT Services Vendors
In summary, the PCI’s cybersecurity effort in the Middle East reflects the industry’s commitment to combatting fraud and ensuring secure payment experiences for consumers and businesses alike. Stay vigilant, stay secure! 💳🔒
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