Technology Highlights the Future of Retail and Payments Industries

The technology on show at the Retail Technology Show at Excel, London is a glimpse of the future for the retail and payment industries. Both industries channels have similar expressions of crime being out of control.  Shoplifting, online scams and payment fraud particularly Authorised Push Payment (APP) being highlighted. The British Retail Consortium reported 20 million cases of shoplifting in 2023-24. UKFinance £1.17 billion reported in 2023 with 76% of APP starting online.

The technology had a clear focus on speed, security, and seamless customer experiences. The technologies highlighted show several important trends including:

1. Enhanced data capacity with next-gen QR codes - Moving beyond simple barcodes to enable comprehensive supply chain tracking and AI integration.

2. Cloud computing advancements - Processing massive datasets, analysed in sub-second timeframes. The use of multiple cloud companies is becoming the norm for payment processes.

3. Improved surveillance capabilities - High-definition monitoring of customers and movements. The use of ‘face identities’ of shoplifters between retail groups to improve deterrent activities. 

4. Frictionless customer experiences - Tackling misinformation problems, particularly “are you who you say you are?” to delivering better trusted and faster service.

5. Payment innovation and regulation - Focusing on speed, simplicity, and security across various payment methods. The technical challenge of meeting the EU legislation (24x7 payments, to be settled within a 10 second response time) dictates cloud, Digital Verification (DV) and multiple accesses for real time connectivity.

Information and online deception

The dramatic increase in data volume (50x over 15 years) presents both opportunities and challenges. The critical issue is ensuring data integrity in social media environments where online misinformation can be rampart. The financial industry's move toward Verification of Payee (PoV) represents an important step in combating fraud. The UK's mandated scam reimbursement rules create stronger incentives as they are now liable for the scammed amounts. This will improve DV and show which banks are the best at protecting customers.

The move to DV by the City of London is important. Just as the London Stock Exchange built on trust ("My word is my Bond") in the early days, modern digital commerce requires reliable identity verification. This enables secure use of advanced technologies.

APP fraud losses in 2023 were £460 million and £106 million lost to online shopping and auction fraud. Security measures aren't just technological niceties—they're essential protections for consumers and businesses alike. The use of AI makes data checking almost invisible to the buyer making the retail transaction a pleasure and payment easy.