Dubai, UAE: As digital payments rise it’s important that we quantify the risks and look to combat the threat with robust measures, according to an expert.
The rise of credit and debit card use in the United Arab Emirates has added $4.2 billion to the country’s GDP. Saudi Arabia’s GDP saw a $4.7 billion rise, with Kuwait and Qatar witnessing more modest rises of $1.2 billion and $0.4 billion respectively.
“This is an active, mobile and tech-minded region that is moving quickly to capitalize on the economic opportunity of e-commerce and m-commerce,” Jeremy King, International Director of PCI Security Standards Council, said. “The PCI exists to work with industry players across the region and the world, to deploy a set of standards that protects the integrity of data and promotes safe, secure online transactions – fueling growth and opportunity.”
Leading experts in card data security have urged the regional payment industries to come together to tackle an increased threat to the integrity of card data as online and mobile payments grow. The PCI Security Standards Council has called for merchants, banks and retailers to work together in securing a safe online experience for the region’s consumers.
The call for collaboration was made by the PCI Security Standards Council International Director Jeremy King, during the recently concluded inaugural Middle East Forum. The event brought together the regional payments industry’s key players to discuss the issue of card security and understand how best global standards – developed by PCI – can be deployed in the Middle East.
With more than 175 million internet connected people across the region, mobile commerce is also set to play a significant role in the future of online payments. Research by Juniper Research, suggests that 11.9 million users in Middle East currently making mobile transactions. Over 80 million people in the Middle East and Africa are expected to turn to mobile banking by 2017.
Yet according to Middle East Payment Services (MEPS), 56% of consumers in the region are ‘concerned’ about credit card fraud and a lack of consumer confidence was cited as a barrier to realizing a significant e-commerce market opportunity.
“The average cost of a data breach rose 15 percent in 2013 to $3.5 million,” added King. “The “root causes of data breaches differ among countries, but countries in the Middle East, as well as in Germany, had more data breaches caused by malicious or criminal attacks than other parts of the world. It’s a threat that will only increase as e-commerce and m-commerce become more widely adopted.”
“The cyber security battleground must be contained. Some institutions have started to issue prepaid cards to increase payment security and encourage online retail, but that does not eliminate the threat. The threat can only be eliminated through a collaborative commitment – from merchants, banks, gateway providers and retailers – to a set of robust, globally recognized standards,” Dr. Abdul Malek Al Jaber – Chairman of Middle East Payment Services (MEPS) and Founder and Chairman of MENA App, said.
The first Middle East Payments Forum brought together more than 200 industry players from across the Middle East to discuss and advance payment security in the Middle East. The region has witnessed an increase in cyber activity recently, with criminals turning their attention from Western targets, to emerging markets with relatively nascent security infrastructure.