Generation “Z” and Millennials are increasingly paying for insurance via mobile devices, creating pressure on insurers still operating on legacy systems that limit payment options, according to findings from the Adyen Index: Singapore Digital Report.

Staff Reporter

, Singapore

/Karolina Grabowska from Pexels

The study warns transaction fraud tin escalate into claims fraud if missed early.

Generation “Z” and Millennials are progressively paying for security via mobile devices, creating unit connected insurers still operating connected legacy systems that limit costs options, according to findings from nan Adyen Index: Singapore Digital Report.

Adyen’s information shows that 27% of security businesses globally suffer complete $1.14m a twelvemonth to fraudulent transactions, underscoring nan value of balancing fraud prevention pinch support rates for morganatic customers.

Adrian Davis, commercialized leader for financial services and security astatine Adyen, said galore insurers underestimate nan effect of payments connected business performance, noting that modernising costs processes tin thief summation sales, little operating costs and trim fraud.

According to nan report, digital-first insurers are amended positioned to meet customer expectations, whilst accepted players look higher costs and slower adjustment owed to outdated infrastructure. 

Modernising checkout processes and offering a wider scope of costs methods could thief insurers amended customer acquisition and summation conversion rates.

Recurring and subscription-based payments are besides highlighted arsenic a increasing area of focus. 

Less than 30% of security businesses globally presently connection subscription costs models, but 79% scheme to put successful them wrong nan adjacent year. 

Failed payments stay a cardinal challenge, often caused by outdated paper details, insufficient costs aliases method issues, which tin lead to argumentation lapses and involuntary churn.

Adyen’s information shows that 89% of consumers successful Singapore wantonness an online acquisition if their preferred costs method is not available. 

Credit cards stay nan astir preferred option, cited by 59% of respondents, followed by debit cards astatine 49% and integer wallets astatine 48%. 

Adyen says devices specified arsenic automated paper updates, intelligent costs retries and costs tokenisation tin thief insurers retrieve grounded payments and trim manual processing. 

In 1 example, HDI Seguros accrued its authorisation complaint from 88% to 91% aft implementing Adyen’s Real Time Account Updater and intelligent retry features. 

The insurer recorded a 0.66% emergence successful approvals, translating to an estimated yearly gross summation of astir $226,922.

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