A new payment system is set to revolutionise online shopping by making transactions more secure by reducing fraud. Known as CPoI (Card Present Over the Internet), this technology allows customers to pay by tapping their card on their phone and entering their PIN. Unlike traditional online payments that require customers to input their card details, CPoI eliminates the need to share sensitive information, making it a safer alternative to the standard checkout process.
Justin Pike, the creator of this technology, believes it could make online payments as secure as those made in person. Inspired by his mother-in-law’s struggles with online shopping, he developed CPoI to offer a safer way to pay. If widely adopted, it could reduce fraud, lower transaction costs and provide consumers with greater confidence when shopping online.
How CPoI Works
Currently, online transactions are classified as “card not present” (CNP) payments because customers must manually enter their card details at checkout. This increases the risk of fraud, as stolen card details can be used to make unauthorised purchases. In contrast, in-person transactions are considered “card present” (CP) payments, where a customer physically taps or inserts their card, making the process more secure.
CPoI brings the security of CP transactions to online shopping by allowing customers to tap their cards on their smartphones and enter their PIN. There’s no need to manually enter card details, reducing the risk of fraud while making the process feel more familiar. The technology essentially replicates the secure transaction method used in stores but applies it to e-commerce.
Justin Pike’s inspiration for CPoI came from a conversation with his mother-in-law, Mary Maddy. During the pandemic, she struggled with online shopping and didn’t feel comfortable entering her card details on websites. She asked Pike why she couldn’t simply use her phone and card, just like she would in a shop. That question sparked the idea for CPoI.
Pike had already developed software that allowed market traders and tradespeople, to use their phones as payment terminals. With CPoI, he saw an opportunity to take that concept a step further and create a more secure and user-friendly online payment method.
Benefits for All
One of CPoI’s biggest advantages is its ability to reduce fraud. Online fraud is a growing problem, with UK Finance reporting over 2.1 million cases of CNP fraud in 2023, leading to losses of more than £350 million. Since CPoI eliminates the need to share card details, as it reduces the risk of fraudsters stealing sensitive payment information.
For consumers, the process feels safer and more intuitive. Tapping a card and entering a PIN are familiar actions that people associate with security. Many shoppers worry about entering their card details on websites, even when using secure checkout pages. CPoI removes that concern by allowing them to complete transactions in a way that mimics in-store payments.
Retailers also stand to benefit. CNP transactions typically carry higher processing fees due to the increased fraud risk. Shifting online payments to a card-present model could lower transaction costs. This could be particularly beneficial for small businesses, where high processing fees eat into already tight profit margins.
The Future of Online Payments
The launch of CPoI is set to take place soon, with major global payment companies, including Elavon and Transactility attending. Industry experts are optimistic about its potential, with many seeing it as a natural evolution in online payment security.
Paul Rodgers, from payment industry body Vendorcom, believes CPoI could be a game changer. He points out that while mobile payment providers like Apple Pay and Google Pay have already improved security through biometric authentication, these solutions are limited to specific devices. CPoI, on the other hand, is designed to work universally, making it accessible to a wider audience.
Adopting new technologies like CPoI is essential for retailers and financial institutions in the fight against fraud. Businesses should always stay up to date with the latest security measures, ensuring they use payment systems that protect both themselves and their customers. Offering secure payment options can also build trust and encourage higher conversion rates at checkout.
An Industry Changer
As fraud continues to rise, innovations like CPoI offer a promising solution for securing online transactions. By mirroring the security of in-store payments, this technology has the potential to make online shopping safer, reduce fraud, and lower processing costs for businesses. If widely adopted, it could redefine how we pay online, providing a more secure and convenient alternative to traditional payment methods.
With strong industry support and a clear demand for safer online transactions, CPoI could soon become a standard payment option for e-commerce. As retailers and consumers embrace this change, it may well mark the next major shift in digital payments—one that prioritises both security and simplicity.
