Fraud prevention on peer-to-peer payments just got better. While p2p payments have steadily been on the rise, fraud prevention for these services is still lacking. FIS, a global leader in financial services technology, recently integrated its p2p services with IBM Safer Payments to support financial institutions in preventing p2p fraud.
FIS uses artificial intelligence and machine learning which help provide real-time fraud detection on p2p transactions:
“Criminals are growing ever-more sophisticated in their methods for conducting payments fraud and they are increasingly targeting P2P services due to the growth in this market,” said Jim Johnson, head of Americas Payments and Wealth at FIS. “FIS is excited to incorporate IBM Safer Payments to provide the highest level of fraud protection to our U.S. clients and their customers who rely on P2P services for fast, convenient payments.”
“FIS is taking aggressive steps to protect its clients against new and evolving threats in the industry,” said Michael Curry, Vice President, IBM RegTech. “IBM Safer Payments uses artificial intelligence designed to deliver insights and to quickly adapt to a changing threat landscape. This technology is yielding successful results for FIS and some of the world’s largest and most complex payment portfolios.”
This news couldn’t come at a better time. P2P payments have reached an all-time high, causing the industry to be faced with new challenges.
Another p2p fashion marketplace has just come on the market. Wardrobe allows users to rent designer clothing items for nominal costs compared to their retail value, and does so by utilizing dry cleaners. Instead of warehousing its inventory, Wardrobe has its clothing owners ship their merchandise to dry cleaners where they wait to be shipped to renters. The company takes a 25-30% cut of the rental cost, and the clothing owner collects the rest.
The p2p rental clothing market is hot right now, and for good reason:
According to Alphons, the average woman owns 57 pieces of clothing that they wear less than once a year, but are hesitant to throw out or resell them because they are vintage or designer pieces that they still want to wear on occasion.
Wardrobe enters a market which already has some stiff competition. The company’s most well-known competitor, Rent The Runway, has already secured $125 million in funding and is estimated to be worth $1 billion.
The largest used car platform in Southeast Asia now allows its users to access p2p financing options. Thanks to Funding Societies Malaysia, Carsome will allow its users to access p2p financing for up to 70% of a vehicle’s value. As a result, more than $200 million in available financing will be accessed by 1,600 car dealers across the region.
“This is where we come in by providing a seamless process and, through automation and technology, speed up and lower the cost to serve the financing needs of these SMEs in a viable manner,” says Wong Kah Meng, co-founder and chief executive officer of Funding Societies Malaysia.
The growth of p2p financing in Asia has skyrocketed, making the region one of the biggest p2p markets in the world. Yet, there are concerns that heavy-handed regulations in Asian countries could stifle the true potential of p2p financing in the region.
The peer-to-peer lending market in Indonesia has exploded in the past few years, reaching over $3 billion in 2019 alone. Another major player is now entering the market as KinerjaPay announced it will receive a permit to operate a p2p microloan lending platform by next month. Along with microloans to individuals, KinerjaPay will issue p2p loans to small and medium enterprises (SMEs). This gives KinerjaPay significant opportunities in a country where only 25% of the country’s 63 million SMEs have access to financing.
“Over the past few months, the company has diligently worked to achieve this license that we applied for earlier this year. Though it has taken longer than we anticipated, we are excited that we have been informed we passed all the qualifications to reach certification.” stated Mr. Edwin Ng, CEO of KinerjaPay Corp (KPAY). The Company’s representatives and teams led by Mr. Anoki Kiyoshi, had taken the needed aptitude tests, fit and proper test as well as a live demo of the application in order to be in full compliance with regulations.
All told, the OJK, Indonesia’s Financial Services Authority, estimates there is $68 billion per year in unmet financing needs that KinerjaPay could address with its p2p platform.
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