FinTechs are witnessing a growing yet competitive market these days. And to no surprise, there are many FinTech that become victims of a lot of online fraud in the recent past. THE B2B marketplace is a volatile area today.
The data claims that an average FinTech in the United States of America loses fifty-one million dollars because of fraud. This is recurring data as it happens every year. The data is still an understatement. Firstly, it only concerns the registered cases. Secondly, only FinTechs came into the picture in the data.
The cases of fraud are much more than the figure that this report shows. A report talks about the ‘The FinTech Fraud Ripple Effect’. There is not just one way in which businesses become victims of fraud. Multiple techniques result in cases of fraud.
The effect of these massive recurring fraud cases is an increase in the level of precautionary safety measures among businesses and the B2B marketplace. FinTechs are imposing increased friction on their account holders.
Some FinTechs are very cautious and thus are imposing several restrictions on the account holders. Although the level of increased safety increases the inconvenience faced by the users, there is no way out.
Nearly all users find it difficult to carry their transactions B2B marketplace due to increased friction. They face trouble moving their money out and making deposits. Although increased friction is to reduce the causes of fraud, it creates other effects on the users as well.
Poor user experience in the B2B marketplace is thus becoming common. The friction in the FinTechs system to prevent fraud makes it harder for users to adopt fast payment methods.
Most of the FinTechs are exploring other ways to make way for a smooth, frictionless system. They prefer to invest in instant offerings like cryptocurrency wallets. This, they believe, can facilitate the user-friendly B2B marketplace.
The introduction of in-store cardless cash withdrawal options and investment in cryptocurrency wallet is the top alternatives for FinTechs. To facilitate convenience in the B2B marketplace, a smooth system must come in place.