Beyond Breaches: Why Security and Trust Are the Real Currency of Payments

The stakes for fraud prevention and data security are rising with innovation across digital payments.

Trust remains the cornerstone of today’s dynamic ecosystem, but it is increasingly tested by a web of risks, including fraud and security vulnerabilities, compliance demands, counterparty reliability, payment failures and more.

“These threats aren’t just financial; they strike at the heart of trust,” Bill Wardwell, general manager at Coupa Pay and Treasury, told PYMNTS for the December What’s Next in Payments series, “The Payments Circle of Trust and Risk.” “A single breach can erode years of goodwill, undermining customer confidence and causing significant reputational damage.”

Fraud and security breaches loom large over the payments industry, exacerbated by the rapid evolution of cybercrime. Wardwell pointed to advanced tactics like business email compromise, cyberattacks and artificial intelligence-driven deepfakes as evidence of a new era of sophisticated fraud schemes.

The challenges are formidable, but they also present an opportunity. With the right technologies and strategies, businesses can transform security from a necessary expense into a competitive advantage.

Security as a Strategic Imperative

While fraud and security dominate the risk landscape, payment complexity is also accelerating. The globalization of supply chains and the proliferation of cross-border transactions have created a fertile ground for risks. Additionally, new payment modalities such as real-time payments and open banking are reshaping the industry.

“Most fraud incidents aim to disrupt financial transactions,” Wardwell said. “Coupled with the increasing complexity of payments, this creates a dynamic and evolving risk environment.”

To address these challenges, Coupa has doubled down on technology investments, emphasizing secure APIs, tokenization and access controls. Networks like Coupa’s, which connect trusted counterparties, offer an additional layer of confidence and operational efficiency.

“We’ve seen embedded finance and network capabilities make a real difference,” Wardwell said. “By integrating financial transactions into platforms like Coupa, we can apply advanced technologies across multiple activities, scaling their effectiveness and minimizing risk.”

AI and machine learning have become indispensable tools for managing risk and improving operational efficiency.

Coupa’s AI models, informed by the company’s transaction data of around $6 trillion, can help firms detect patterns and anomalies in real time. This ensures security without disrupting the user experience, a crucial factor in maintaining trust.

“AI isn’t just about identifying risks; it’s about scaling solutions effectively,” Wardwell said. “And while blockchain hasn’t fully transformed traditional workflows yet, its potential to automate and secure processes autonomously is promising.”

Bridging Education Gaps in a Growing Financial Ecosystem

The rise of open banking and APIs has opened new avenues for collaboration, but it has also introduced education gaps. Frameworks for assessing third-party risk, from technology audits to supplier financial stability, are important, Wardwell said.

“Collaboration and education are essential,” he said. “Sharing insights and best practices within the industry helps everyone stay ahead of evolving threats.”

At the same time, the influx of non-traditional players — FinTechs, commerce platforms and even retailers — has elevated customer expectations in payments. While these entrants bring innovation and user-centric design, they also challenge established financial institutions to modernize.

“This convergence benefits customers,” Wardwell said. “Traditional players bring expertise in managing risk and compliance, while new entrants push the envelope on technology and user experience.”

However, in an age where convenience is paramount, Wardwell said businesses cannot afford to compromise between user experience and security. Instead, the focus must be on using technology to achieve both. Similarly, businesses must balance compliance with innovation by integrating regulatory frameworks into the innovation lifecycle.

“We need open dialogues between stakeholders — regulators, banks, security firms and payment platforms — to foster a trustworthy ecosystem,” he said. “Collaboration is key to aligning innovation with regulatory goals.”

Looking ahead, Wardwell said Coupa remains focused on addressing its clients’ top concerns: fraud prevention, data security, global scalability and using new technologies to stay ahead of threats.

“This is an exciting era for payments,” he said. “But as the landscape evolves, maintaining trust will require a relentless focus on innovation, collaboration and education.”

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