eCommerce relies on Address Verification

How address validation works

New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
  • 70.5%
  • 54.5%
  • 46.5%
  • 39.6%
  • 40.7%
  • A higher percentage make payments via internet banking to banks and insurance companies, telcos, and retailers, respectively, compared to the regional average
  • Impact: Anti-fraud capabilities critical to the increased digital transaction frequency and customers’ trust in banks
Australia Australia
Consumers are most satisfied with the post-fraud service of banks and insurances companies
  • More than 70% satisfaction rate compared to 59.7% on average
  • Impact: Increased trust in BFSIs
Indonesia Indonesia
Consumers that encountered most fraud incidents in the past 12 months

AP Average

  • 49.8% have experienced fraud at least once compared to 34.7% on average
  • Impact: Overall anti-fraud capabilities need improvement
Singapore Singapore
Consumers have the highest trust towards government
AP Average
  • 75.5% choose government agencies, compared with 51.7% on average
  • Impact: Trust of personal data protection is centered around government agencies
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
  • 54.5%
  • 32.8%
  • 35.2%
  • 55% and 54.5% have experienced fraud at least once in retail and telco, respectively, compared to 32.8% and 35.2% on average
  • Impact: Overall anti-fraud capabilities need improvement
Thailand Thailand
Most Thai consumers believe speed and resolution are severely lacking (response/ detection speed toward fraud incidents)
AP Average
  • 60.5% think it is most important, compared to 47.7% on average
  • Impact: Response time as one of key factors to fraud management to retain customers and gain their trust
India India as standalone
Consumers have the largest number of shopping app accounts in the region
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
Hong Kong
Hong Kong Hong Kong
The least percentage of consumers with high satisfaction level toward banks and insurance companies’ fraud management
AP Average
  • Only 9.7% are most satisfied compared to 21.1% on average
  • Impact: effective response towards fraud incidents to be improved
China China
Consumers are the most tolerant toward submitting and sharing of personal data
AP Average
  • 46.6% compared to the AP average of 27.5% are accepting of sharing personal data of existing accounts with other business entities
  • Impact: higher exposure of data privacy and risk of fraud
Japan Japan as standalone
Consumers most cautious on digital accounts and transactions
50.7% Actively maintain digital accounts’ validity
27% AP Average
45.5% Do not do online bank transfers
13.5% AP Average
  • More than 70% did not encounter fraud incidents in past 12 months, compared to 50% on average
  • Impact: Relatively low risk of fraud

Retailers put their faith in customer data validation

Retailers put their faith in customer data validation

On Black Friday 2021, in the APAC region Experian saw 5.3 million validation requests. That’s approx. 3,600 validations every minute. As customers scrambled to make their purchases, eCommerce vendors utilised customer data validation technology to make the experience more seamless, more accurate and faster.


Across the whole of cyber week (23rd - 30th November) there were 207 million validation requests, a 50% increase in volume in just two years (There were 206.8 million requests in 2021 versus 136.1 million in 2019). As these digital sales periods grow in popularity, vendors are looking at ways to digitise their processes at scale.


Similarly, validation requests for the Boxing Day sales have doubled over the same period as consumers move their purchases to being delivered. An accelerating trend that has been heavily influenced by the pandemic.


What is a customer data validation request?


During an online purchase of goods, customers must enter multiple details, including personal, geographic and financial information to complete their purchase. Data validation technology helps eCommerce vendors to accelerate this process and make it easier (therefore avoiding basket abandonment) by providing some of the necessary information for the consumer.


It works by using authoritative reference data to digitally “look up” the customer's information, such as an address, for example. The customer begins to enter their address, after just a few keystrokes Address options are suggested. Their full address is then populated automatically for them without any further keystrokes.


The data is referenced from leading location data sets such as Australia Post’s PAF file or New Zealand Post’s address file, so guarantees high levels of accuracy and an easier process for the customer.


Why has the popularity of customer data validation increased with eCommerce vendors?


Two reasons. The first is technological. As consumers move more of their purchasing habits online, eCommerce vendors need to scale their technological infrastructure in order to cope with the increased demand. By digitising elements of the purchasing journey they make it faster and the improved accuracy requires less human intervention when things go wrong. Saving them money.


The second reason is to improve the customer experience. Consumers expect seamless purchasing processes and when this doesn’t happen they can become frustrated, potentially abandoning their purchase altogether. By utilising data validation technology, the eCommerce vendor ensures the process is as easy as possible while improving accuracy, as we have already mentioned. A win-win situation for consumer and vendor.


Trusted reference data, expertly delivered


Experian has a wealth of customer data validation solutions that help improve the customer purchasing process and ensure less money is wasted on things like lost shipments.


Our address, email and mobile validation technology integrates straight into the eCommerce purchasing journey, making it faster, more accurate and more user friendly.


To take a look at our tools and services then head to customer data validation hub for more information.


Read full article


By Experian 02/18/2022

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