A Welsh fintech startup has introduced an innovative solution to tackle card-not-present fraud by transitioning offline tap-and-pin payments into the e-commerce space.
Developed by the Welsh company Burbank, the ‘Card-Present over Internet’ (CPoI) module allows merchants to securely handle card-present transactions online. Burbank CEO Justin Pike explains, “With CPoI, we are aligning in-store and digital payments. Our goal is to transform e-commerce by significantly reducing fraud and eliminating false positives—issues that have long plagued online sellers.”
Currently, online merchants suffer losses exceeding $40 billion annually due to fraud and chargebacks, which occur when a cardholder disputes a transaction, forcing the merchant to issue a refund. Beyond fraud prevention, Burbank highlights that CPoI also addresses a more costly issue for online businesses: false positives, where legitimate transactions are mistakenly flagged as fraudulent and declined by banks.
“These erroneous actions cost merchants $443 billion each year, with 65% of blocked transactions being false positives,” Pike notes. “Worse still, 41% of affected customers never return to the retailer.”
With CPoI, online shoppers can simply tap their payment card against their mobile device and securely enter their PIN to complete the payment, mirroring the in-store experience. Pike adds, “CPoI will make internet purchases accessible to consumers of all ages and provide the highest level of protection when shopping online, all while revolutionizing online commerce for merchants by reducing fraud and establishing a new standard for secure online transactions.”
Pike is a seasoned entrepreneur, previously founding travel payments company eNett, MyHSM, and MYPINPAD.