Limiting customer contact at the point of sale is a big issue in the wake of Covid-19, so a new initiative from payment services company SafeCharge aims to tackle it with QR codes.
SafeCharge has announced a new solution that offers small businesses alternative ways to accept digital payments in response to the Covid-19 crisis. Devised with help from Visa, SafeCharge Local is aimed at providing a better consumer experience in store by reducing queues and limiting the need for close customer contact at the point of sale.
At the heart of the system is a digital payment solution called Paylink, which enables businesses to receive payments through the use of QR codes and secure payment links without the need for a physical point of sale terminal or an online shop.
As business owners adapt to new restrictions around physical distancing, the solution offers customers an easy, fast and secure way to make payments through their mobile phones and smart devices.
Using SafeCharge Local, small businesses can choose to accept payments in two ways. Firstly, they can generate a unique QR code or email link, directing consumers to a secure page where they can complete the transaction. Alternatively, they can create a secure payment page that can be completed when consumers place orders over the phone.
All payments are handled within SafeCharge’s Control Panel, an online hub that lets merchants manage and view all their payment activity in one place. Business owners subsequently receive confirmation of the payment once it has been processed.
The program has been designed so that it is easy to implement, requires no costly technical development or resources and can be used across a range of mobile devices. SafeCharge says that it will help provide small businesses with the flexibility to easily begin accepting digital payments and continue selling to their customers by streamlining the payment process.
Philip Fayer, Nuvei’s chairman and CEO said: “Merchants have been quickly adapting their offerings and business models in order to get them through this challenge, yet even today, many small businesses have a digital gap to overcome.
Our team is pleased to not only provide the technology to keep commerce flowing, but the professional insight and partnership required to help merchants reinvigorate their business operations using a completely new payment method, some for the very first time. The more we make it effortless for a business to grow, either locally or globally, the greater the long-term value they’ll receive.”
Yuval Ziv, MD of SafeCharge and head of global acquiring said: “Our focus throughout Covid-19 has been to leverage our technology, flexibility and industry knowledge to provide struggling businesses with the tools required to survive this crisis.
Our principal clients are ecommerce merchants and ideally placed to adapt or potentially thrive throughout the crisis. However, as we quickly recognised the impact to the economic landscape, we wanted to help businesses at risk of bankruptcy, particularly those providing essential goods and services to their communities.
We believe that when restrictions lift, these merchants will leverage the additional revenue stream and transform their business model to include an online presence. It’s quite probable that their customers will continue to buy with Paylink or similar means of digital payment. We are deeply committed to supporting businesses impacted by the crisis. We will get through this together.”
Dominic White, Visa's head of merchant sales and acquiring for UK & Ireland said: “Businesses of all sizes are navigating an overnight shift to digital amidst the global pandemic. As consumers continue to embrace digital payments for their everyday spend, Visa is working with partners like SafeCharge to provide the help and resources businesses need to adapt as they rebuild for the future.”
Demand for electric bikes is on the rise, which is hardly surprising for all sorts of reasons. Many of us are keen to do our bit for the environment, especially when it comes to cutting emissions from our own vehicles.
Add to that an increasing push towards reducing traffic congestion, especially in towns and cities, plus our desire to get some exercise into the bargain means these are boom times for bicycle retailers. It’s Covid-19 though that has been the real game-changer.
In fact, because of the coronavirus pandemic our hunger for owning electric bikes has been increasing so much that many cycling outlets are reporting that they can't get new stock fast enough. A recent survey of 20,000 motorists by the Automobile Association in the UK revealed that 40% of people intended to drive less in the foreseeable future. Meanwhile demand on the other side of the Atlantic appears similarly enthusiastic.
The US is obviously a bigger and more complex nut to crack, but progress is being made as city planners see the potential. Owning an electric bike can help you social distance and having your own machine, rather than sharing or renting one, means you can keep tabs on the all-important cleanliness aspect. Sanitizing handlebar grips and other areas of a bike that tend to get grubby when being ridden by multiple users in cycle sharing schemes is immediately less of a worry.
Growing appeal
Also helping to persuade us to leave the car behind is an increasing number of cycling initiatives and incentive schemes, plus an improving bike infrastructure. The UK government, for example, announced £2bn would be invested into new cycling and walking projects. Meanwhile, the long-running Cycle to Work scheme is still ticking over and that now includes electric bikes as part of a tax break opportunity for employees.
While we’re nowhere near a country like the Netherlands with their forward-thinking cycle strategy, things are getting better. More recently, we’ve even seen pop-up cycle lanes appearing as a short-term measure during the coronavirus pandemic.
And, looking to the future, with many inner-city areas becoming harder to access by car, getting there and back on two-wheels might end up being your best bet anyway.
Decision time
So which one to buy? Picking the right electric bike for your needs can be tricky. This basically boils down to what you plan to do with your e-bike and where you want to cycle. Some us will want an e-bike for commuting, or perhaps town and country use, while others might fancy a bit of off-roading. You might want an e-bike that can do all of the above.
There are plenty of recent additions to the ebike marketplace, including the funky folding bike that is the GoCycle GX, the great Ampler Curt all-rounder or the beefy Specialized Turbo Vado 4.0 that can justify you leaving the car at home altogether. If keeping costs down is the main issue for you then something like the Gtech Sport or the Gtech eBike City are good value starting points. But let’s take a look at some specific electric-bike segments for additional suggestions.
The Batch Bicycles E-Commuter looks much like a standard hybrid bike, but has an extra kick from its electric motor
Electric hybrid
An electric hybrid bike is perhaps the best one to go for if you're looking for a bit of an all-rounder. The styling will be a little more conventional and much akin to a regular non-battery cycle, but a hybrid electric-bike will do everything you need it to do with, naturally, the benefit of battery power.
Take the Batch Bicycles E-Commuter for example, which has almost humdrum styling but quality components and a solid build. It’s a great example of a middle-ground electric-bike. Spend more and you’ll get more though, as witnessed by the Gazelle Ultimate T10+, which comes with a beefy spec and more radical styling. This is a bustling area of the electric-bike market though, so you won’t have to look hard to find plenty more examples to suit all wallets.
The folding GoCycle GX is a great choice if your journey also involves public transport
Commuter bikes
If you’re a commuter and want an electric bike that you can take on public transport, or use for parts of your journey rather than the entire leg to and from work a folding electric bike is a good bet. British brand Brompton has made folding bikes for years and now they have an e-bike version too, the Brompton Electric no less, which has all of the usual trademarks plus battery power. We tried it during a previous look at the best electric bikes to buy.
The Gocycle GX mentioned earlier is a folding model that’s guaranteed to turn heads and, as a result, possibly gain the attention of thieves too. Instead, the Blix Vika+ sports more conventional looks but still folds neatly in the middle. Remember though that due to the battery pack folding electric bikes can feel bulky, so while they have their place, you’ll want to be spending more time riding one than carrying it.
The Specialized Turbo Levo Comp proves that electric bikes aren't limited to city streets
Mountain bikes
Fancy going off-road and don’t want to do it in your 4X4 or SUV? There are plenty of e-mountain bikes on the market, with the likes of the Spectral:On from Canyon, the Merida EOne-Sixty 800 and the Specialized Turbo Levo Comp, which are all very good. However, just like every other area of the electric bike marketplace, the range is growing all the time and there are e-MTBs to suit any kind of budget.
It has to be said though that if you can pay more it’s worth it, especially if you're serious about going off-road as the build quality and components are generally better as a result. Hard riding in harsh conditions will soon take its toll on cheaper models that might look okay initially, but often lack staying power in the long run.
Older alternatives
The good thing about new models coming to market is that it often means you can get older model electric bikes for less money. So, the likes of VanMoof’s high-end Electrified X2 might appeal, as there are now the new VanMoof Electrified S3 and X3 models to set your sights on. Similarly, the Haibike Sduro Hardnine 2.5 Street and the Volt Infinity, that we’ve reviewed previously, might be a good way to invest in the appeal of an electric bike.
Carrying capacity
One of the main arguments for people wanting to stick with their cars is that they're able to carry more. However, there are a few bike manufacturers who have addressed this issue. The solution? Cargo bikes. These are admittedly bigger and bulker than regular electric bikes but they can generally handle more payload.
Take a look at the likes of the Rad Power RadWagon, Tern GSD or Reise & Muller Load 60 for some examples of prime heavy haulers. You get all of the benefits of an electric bike, plus the added ability of being able to carry lots more stuff. The longer wheelbase of these machines might look a little daunting, but the battery power compensates for any unwieldy handling characteristics.
With its fat tires and powerful motor, the Rad Power RadRhino is a whole lot of fun
Electric fat bikes
Meanwhile, while they’re not made for cargo, electric fat bikes (so-called because of their chunky tyres) are a bit of a curiosity but battery power makes them a blast. We tried out Rad Power’s brace of RadRhino offerings and loved their performance and OTT styling. However, Addmotor’s Motan is a premium bruiser while the Wildcat Fat Tire Electric Bike is pretty cool too. Another growing sector of the electric bike market.
Budget electric bikes
However, given the way things are right now you might also be looking for a budget way to enter the electric bike market. If so, there is help at hand, thanks to the Swytch electric bike conversion kit. We looked at an early incarnation of this innovation that can electrify any bike with the addition of an easy-fit conversion kit. There are numerous other variations on the theme too, many of which can be fitted to a bike you already own.
Electric bike security
Buying the best electric bike for your needs is one thing, but it’s also worth considering security if you’ve chosen a model you like. By their very nature, electric bikes are infinitely more appealing to thieves due to their eye-catching looks and high value. They can and indeed do tend to attract attention and while some of this will be from admirers, there could be others who’d love to relieve you of your property. So you’ll need a lock. Two or three might be even better.
A popular choice is the Abus Granit X-Plus 540, the Abus Granit 59 Extreme D-Lock, or anything by the Abus brand in general. Kryptonite Kryptolok’s are good too and, as many a Dutch person will tell you, a selection of locks is much better; even more so if each one requires a different tool to compromise it.
If a bike thief has to take time to work on multiple locks they might hopefully give up and try elsewhere. And anyway, with battery power at your disposal, a little extra weight from lugging all those locks around isn’t really a hassle, right?
Customers of Revolut, the banking services provider, have been targeted by a series of scam texts and malicious Google ads. Scammers are employing phishing texts and elaborate advertising that contain bogus phone numbers in order to steal data.
According to the UK consumer advice website Which?, one victim has lost nearly £8,000 as a result of a malicious attack. It says that last week alone five people got in touch with them after receiving text messages, which had apparently been sent from Revolut with most stating ‘your account has been temporarily locked’.
People receiving the messages were also asked to click on a link and update their photo ID. Other messages have referred to authentication codes and have asked recipients to visit a web page if they ‘did not request this code’.
The web addresses used in the links take unsuspecting users to fake sites, with carefully adjusted URLs such as the https://revoiut.help example on the Which? website that used an ‘i’ instead of an ‘l’.
There have been other variations on the theme, with one text appearing to come from revolut-supportgb.co, but with another web address disguised behind it. Revolut has previously warned of scammers posing as their phone support agents in a blog post at the beginning of January.
The consumer who lost £8,000 called a number that appeared on a fake Revolut Google advert. After being told to resubmit his ID following an email saying it had expired, he used Google to search for a Revolut phone number in order to confirm everything was legitimate.
During the course of speaking to people purporting to be from Revolut, he was told to download a remote access tool called TeamViewer QuickSupport. This gave them access to his mobile phone in order to verify his account, via the Revolut app. As a result, the victim had £7,938 removed from his account. Revolut has since reimbursed the customer in full.
A spokesperson for Revolut told Which?: “Revolut takes the protection of all our customers extremely seriously. We are fully aware of the industry-wide risk of customers being duped by organised criminals. Our sophisticated and comprehensive anti-fraud systems have a very strong track record of preventing and reporting fraudulent transactions.
To ensure our customers are alert to the risk of fraud, we regularly send alerts and general security advice via in-app notifications, email, social media and our blog. We know how stressful these situations can be for customers and do everything possible to help victims of fraud retrieve their funds.”
The consumer advice website underlines that you should never be asked to share your login details, one-time password or asked to install anything on your phone. Similarly, if someone claims to be from Revolut over the phone, ask them to send you an in-app message to confirm that they are a real agent.
Akamai has launched its Page Integrity Manager, a new in-browser cybersecurity product that uses artificial intelligence to spot attackers trying to steal data via first or third-party scripts used in websites.
The tech company, which delivers network security, web and mobile performance products, says the in-browser threat detection solution has been primarily designed to uncover compromised scripts. These are frequently used to steal user data, particularly credit card information, or impact the user experience.
Initially popularized by Magecart groups; networks of malicious hackers who target online shopping cart systems, Akamai says that in-browser web-skimming attacks using malicious web page scripts are growing.
A typical website relies on dozens of third-party sources with many that run scripts executed in user browsers. Third-party scripts are essential for the dynamic user experience found in websites, including sensitive information pages used for payments, account management and personal information forms.
However, security teams have little visibility into or control over these third-party supplied and maintained scripts.
Akamai has therefore designed Page Integrity Manager to protect websites from JavaScript threats, such as web skimming, form-jacking, and the aforementioned Magecart attacks, by identifying vulnerable resources, detecting suspicious behaviour and subsequently blocking malicious activity.
By detecting suspicious script activity in real-time, Akamai claims Page Integrity Manager will offer a more effective way to defeat well-hidden supply chain attacks such as Magecart when they happen.
“Web skimming attacks steadily remain at a high-volume across a variety of industries, especially retail, media, and hospitality,” said Akamai Security Researcher Steve Ragan. “Over a recent seven day period, we analyzed nearly five billion JavaScript executions, across 110 millionpage views and saw about a thousand vulnerabilities, any one of which could result in stolen sensitive user data.”
The FBI recently reported that web skimming has been on its radar for nearly seven years, but the crime is growing because cybercriminals are sharing the malware online and becoming more sophisticated.
“By its nature, web page scripts are very dynamic. Third-party scripts are especially opaque, creating a new attack vector that is challenging to defend against,” said Richard Meeus, Director of Security and Technology Strategy EMEA, at Akamai.
“Page Integrity Manager gives our customers the visibility they need to manage the risk from scripts, including first-, third-, nth-party scripts, with actionable intel needed to make business decisions unique to your organisation.”
Shopify has unveiled a raft of new finance, retail and shipping updates for its e-commerce platform at a virtual even dubbed Shopify Reunite.
The headline product is Shopify Balance, a business account, debit card and rewards combination that will include a new area found within the Shopify merchant admin workspace. It will allow merchants to get a clear overview of their cash flow as well as let them pay bills, track expenses and make changes to the direction of their business.
The Shopify Balance card aspect is comprised of both physical and virtual cards that merchants can use for accessing their money, via mobile or online as well as at ATMs. The service comes with no monthly fees or minimum balance requirements and will be launched in the US later this year.
During research, Shopify found that two in five merchants are currently using their personal bank accounts and cards for business. This means they’re combining the two, making it difficult to measure the financial health of their business. Shopify Balance has therefore been designed to close that gap.
Shopify has also added Rewards to its portfolio of products, which will allow it to offer merchants cashback and discounts for business spending, such as shipping and marketing.
Meanwhile, Shop Pay Installments is a ‘buy now, pay later’ product aimed at giving merchants more choice and payment flexibility by allowing consumers the option to split purchases into four equal payments over time. It will be interest-free, have no additional fees and be available to US merchants eligible for Shopify Payments.
Another new product comes in the shape of Local Delivery, which is aimed at merchants globally. It will let them define a local area for order fulfilment with business owners being able to make use of its Shopify, Shopify POS and Shopify Mobile products to make close-to-home deliveries.
Shopify also revealed updates for its Fulfilment Network, which launched in 2019 after the company opened its first research and development hub in Ottawa to trial new robotics and ordering technologies.
The Covid-19 crisis has driven Shopify to add extra features and functionality to its products, including its online store capabilities due to increased demand from existing and new users.
Tweaks include the option to collect tips at checkout, while Shopify has also released a new one-page theme called Express that enables merchants to get online super quickly. In addition, selling gift cards is now available to all merchants.
The new features are a supplement to Shopify’s recently announced Shop, a direct-to-consumer app and personal shopping assistant. Meanwhile, a forthcoming Shop Channel will let merchants control how their brand appears online.
The Canadian company had expected to host the fifth Shopify Unite event in Toronto earlier in the month, but had to cancel due to the ongoing Covid-19 outbreak.
PayPal is introducing the ability to use QR Codes to buy and sell goods without making physical contact
The roll out of the QR code functionality in the PayPal app allows customers to buy or sell in in-person, safely, securely and touch free, in the UK and 27 markets around the globe.
Additionally, for a limited time, PayPal is waiving its standard seller transaction fees incurred on sales conducted using a QR Code.
“We know that in the current environment, buying and selling goods in a health-conscious, safe and secure way is front of mind for many people around the world. As the coronavirus situation has evolved, we have seen a surge in demand for digital payments to transition to include new in-person environments and situations,” said John Kunze, Senior Vice President of Branded Experiences, PayPal.
“The rollout of QR codes for buyers and sellers not only incorporates the safety, security and convenience of using PayPal in-person, but also takes into consideration ongoing social distancing requirements, even as we start to see some restrictions be lifted around the world.”
Lisa Scott, Senior Director, PayPal, said: “Covid-19 has changed the shopping experience in the UK as we know it. The need for security and convenience is there, as always, but we now need to be able to sell and buy in a way that is quick, safe and involves limited social contact. Digital payments, and this QR code functionality, provides people and small businesses in the UK with the means to pay and get paid during the crisis and hopefully thrive in the future.”
Safer purchasing
Using the QR code functionality in the PayPal app is a quick and safe way to complete a transaction in-person utilising a PayPal wallet, eliminating the need to handle cash. For example, customers who are selling items in-person at local coffee shop can print a QR code, place it on their table and have their consumers simply scan, enter the amount they’re paying and send money immediately.
This allows the seller to minimise physical interactions with the customer, while also limiting the customer’s interaction with checkout technology. There is no technology to touch or purchase - just aim a smartphone camera at a QR Code that is printed or present on another screen.
For a buyer looking to pay, customers can go to the PayPal app, click ‘Send’ and tap the QR code symbol in the top right-hand corner. The camera will open and customers can scan a seller’s QR code and follow the prompts to complete the transaction. Sellers can create a PayPal-generated QR code by following the steps outlined here.
PayPal is rolling this functionality out to 28 markets around the globe including: Australia, Austria, Belgium, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, Portugal, Slovenia, Slovakia, Sweden, Switzerland, Spain, United Kingdom and the United States.
Mastercard has launched its Track Business Payment Service in the US, aimed at revitalizing B2B payments. The new service will deliver greater control over payments and offer richer data exchanges for both buyers and suppliers.
The Track Business Payment Service enables buyers and suppliers to manage their payments more efficiently in a way that will, says Mastercard, result in better outcomes for both parties.
Using the new system, suppliers can systemically manage how they get paid for different invoices for different buyers. Meanwhile, buyers can optimize and automate efficiencies in paying suppliers with improved reconciliation to manage cashflow and capture early payment discounts.
All of this is managed through a single platform that minimizes the need for manual and time-consuming back-and-forth between buyers and suppliers. Further efficiencies have been built in to the system thanks to improved remittance data with every payment. It will allow suppliers to reduce time and labor costs spent on reconciliation and on making inquiries to their buyers.
“When we started work on Mastercard Track Business Payment Service, we looked at the persistent problems in B2B payments and asked ourselves how we could solve them for the benefit of Buyers and Suppliers," said James Anderson, executive vice president of Global Commercial Products at Mastercard.
"We realized that we needed to apply the techniques that work so well in consumer payments: delivering value to both buyers and suppliers, embracing standardization, driving scale by working with the most capable partners and by creating incentives to drive behavioral changes by the participants."
"What we’re building with our partners is a fully digitalized and extremely efficient way for businesses to pay and get paid using multiple payment rails so that buyers and suppliers each capture new and demonstrable value from their payments activity,” Anderson said.
“It gives businesses a way to maintain control, manage cash flow better and be more operationally efficient – all things that are incredibly important for companies navigating today’s economic challenges.”
The first commercial version of Track Business Payment Service has now launched in the US with distribution partners across the B2B ecosystem, including Global Payments, AvidXchange, Boost Payment Solutions, Corporate Spending Innovations (CSI), Fiserv, HighRadius, Tesorio, Veem, Velo Payments, VersaPay and YayPay.
Beyond the US, Mastercard piloted the Track Business Payment Service with Paymentez in Latin America in 2019, and is planning a full commercial launch there. Further pilots will be executed in Europe, the Middle East and Africa and Asia-Pacific during 2020, with commercial launches to follow. In Europe, Mastercard is piloting card payments with Adflex and domestic and cross-border ACH payments with Veem.
Coronavirus has caused a significant impact on the way consumers shop and make payments. With social distancing rules in place, many of them have embraced contactless payments and digital wallets as a safer way to manage their money.
According to data gathered by AksjeBloggen, the global digital payments market is expected to continue rising in the following years, reaching $6.7trn value by 2023.
In 2017, the global digital payments market was valued at $3.1trn, according to figures pulled from market and consumer data provider Statista. In the last three years, this value increased by more than 50%, reaching 4.7trn in 2020. Statistics indicate the entire digital payments industry is set to continue growing by CARG of 12% by 2023.
Digital commerce represents the leading revenue stream in the market with a $3.7trn transaction value in 2020, or almost 80% of the entire market value this year. Statista survey data revealed that online buying and selling of goods and services would remain the largest revenue stream of the global digital payments industry in the following years, reaching $4.5trn transaction value in 2023.
However, statistics show the following years are set to witness a significant rise in mobile POS payments. In 2017, this segment of the digital payments market was valued at $368.6bn. Since then, mobile payments rose more than 175%, reaching $1trn value in 2020. The dominant upward trend is expected to continue in the following years with mobile payments becoming $2.1trn worth industry by 2023.
The last few years have also witnessed a surge in the average transaction value of the mobile POS payments, growing from $447 in 2017 to $791 in 2020. By the end of 2023, this amount is expected to jump to nearly $1,290.
Statistics show that in 2017, more than 4.1bn people all around the world were using digital payments. Since then, the figure jumped 25%, reaching 5.2bn this year.
The following years are set to witness the growing number of users in the digital payments market, reaching 6.1bn by 2023, or almost 50% more compared to 2017 figures. Statistics show that mobile POS payments witnessed the most substantial increase, with the number of users growing from 824 million in 2017 to 1.6bn by 2023.
Analyzed by geography, China represents the leading digital payment market globally with a $1.9trn transaction value in 2020. The country is forecast to reach almost 50% market share by 2023. With a $1trn transaction value, the United States ranked as the second-largest digital payments industry in the world. The Statista report showed that together, China and the US would account for nearly 70% of the global digital payment’s transaction value in the next three years.
The United Kingdom ranked third with a $176bn market value in 2020. Japan and Germany follow with $173.1bn and $127.4bn, respectively.
Downtime is a major challenge for small and medium businesses (SMBs) today. The IT systems of nearly a quarter of SMBs have gone offline in the past year, according to new research fromcloud-based data protection company Infrascale, SMBs said the downtime creates business disruption and decreases employee productivity. More than a third (37%) of SMBs in the survey group said they have lost customers and 17% have lost revenue due to downtime.
“Customer retention is essential for business success,” said Russell P. Reeder, CEO of Infrascale. “It can cost up to five times more to attract a new customer than to retain an existing one, and when customers leave, businesses lose out on vital profit and operational efficiencies. Especially in today's competitive environment, it's challenging enough to retain customers. With all the cost-effective solutions available, downtime shouldn't be a reason for concern."
Nearly a fifth (19%) of SMBs admit that they do not feel their businesses are adequately prepared to address and prevent unexpected downtime. Of those SMBs that said they feel unprepared for unexpected downtime, 13% said they do not feel their business is prepared for unexpected downtime because they have limited time to research solutions in order to prevent it.
More than a quarter (28%) attributed not feeling prepared for unexpected downtime due to IT teams at their organization being stretched. The same share (28%) said they don’t think their business is at risk from unexpected downtime. Yet more than a third of SMBs (38%) said they don’t know what the cost of one hour of downtime is for their businesses.
The Infrascale research is based on a survey of more than 500 C-level executives at SMBs. CEOs represented 87% of the group. Most of the remainder was split between CIOs and CTOs.
“Customers today areextremely demanding,” said Reeder. “They are intolerant of delays and downtime. The Infrascale research highlights this business reality.”
Thirty-seven percent of the SMB survey group admitted to having lost customers due to downtime issues. This problem was especially pronounced among business-to-business entities; close to half (46%) of B2B businesses have experienced such a loss. As for business-to-consumer SMBs, a quarter (25%) said they have lost customers due to downtime problems.
Business disruption
Loss of customers and revenue are just two of the downsides of IT system-related downtime. Downtime also can hurt employee productivity and adversely impact a company’s reputation.
SMBs said the biggest downtime risks are business disruption (29%) and decreased employee productivity (21%). As noted above, nearly a fifth have lost revenue (17%). Reputation impact (16%) and cost (13%) came in next.
Software failure (53%) and cybersecurity issues (52%) are the most common causes of the downtime that creates these business challenges, according to the Infrascale survey group. A significant, but far smaller share of the SMB survey group blamed downtime on hardware failure (38%), human error (36%), natural disaster (30%), and/or hardware theft (24%).
Downtime costs
A tenth of SMBs (10%) said their per-hour downtime cost was more than $50,000. Thirteen percent said their per-hour downtime cost was between $40,001 and $50,000. A quarter (25%) of SMBs said the per-hour cost of downtime for their business was between $20,001 and $40,000. A slightly larger share (26%) said they incur a loss of $10,000 to $20,000 for each hour of downtime, while 27% said their cost of downtime per hour was under $10,000.
The good news is that the survey group indicated downtime typically lasts for minutes instead of hours. More than a fifth (22%) of the survey group said their downtime events typically last anywhere from five to 15 minutes. Just less than a fifth (17%) of the group said their downtime commonly stretches on for 15 to 30 minutes, and another 17% said an hour. Just 6% said over an hour.
“The downtime duration results may seem reassuring, but in today’s challenging and fast-moving business environment, every second counts,” said Reeder. “Even if your company was down for minutes, just think of the reputational damage it can cause as well as real costs when data cannot be recovered. There is really no excuse these days for not backing up your data.”
Being prepared
Nearly a fifth (19%) of the B2B survey group said they do not feel their business is prepared for unexpected downtime, and B2C organizations feel even less prepared. More than a quarter (27%) of B2C survey participants said they believe their business is unprepared for unexpected downtime.
“These survey results illustrate that there’s plenty of room for improvement when it comes to business uptime,” Reeder added. “Organizations can benefit from application and server backup, ransomware mitigation, disaster recovery as a service (DRaaS), encryption, and state-of-the-art endpoint protection. Investments in such solutions enable them to avoid downtime and enjoy business continuity, which are essential for a growing and thriving business.”
HMRC has taken down nearly 300 Covid-19 phishing scam sites in the last few weeks according to new data. The Inland Revenue has been asking Internet Service Providers (ISPs) to remove nearly 300 web addresses since the national lockdown commenced on March 23.
According to figures collated by legal firm Griffin Law under the Freedom of Information Act, of the 292 sites that have been removed some 237 were identified by HMRC.
Meanwhile, the remaining 55 have been highlighted by members of the public using the dedicated reporting inbox, which can be contacted via [email protected].. The phishing scams are a combination of emails and text messages, with the majority coming from mobile phone sources.
Since March, HMRC has also reported that it has discovered 62 active phishing scams to date, all of which have related to the Covid-19 pandemic and arrive via SMS.
A widely-reported phishing email scam has already been used to target business owners applying for the government’s Coronavirus Job Retention Scheme. The message has been sent to business owners using official HMRC branding and purports to be from ‘Jim Harra, First Permanent Secretary and Chief Executive of HMRC’.
The email asks for the bank account details of the recipient and includes the following message with typos. “Dear customer, We wrote to you last week to help you prepare to make a claim through the Coronavirus Job Retention Scheme. We are now writing to tell you how to access the Covid-19 relief. You will need to tell your us which UK bank account you want the grant to be paid into, in order to ensure funds are paid as quickly as possible to you.”
Cyber security expert Chris Ross, SVP, Barracuda Networks said of the scam: “We’re seeing a sharp rise in phishing emails relating to the Covid-19 outbreak and this example underlines how hackers will prey upon vulnerable business owners who are trying to protect jobs.
As always with these scams, the victim is encouraged to disclose personal data and financial information under the false assumption that the email is legitimate. It is absolutely vital that businesses have the cyber security systems in place to identify and quarantine phishing emails and ensure that every employee is properly trained to spot suspicious communication and think twice before giving out personal information.”
The Coronavirus crisis has already cost UK SMEs an average £277,893 each and 64% expect their revenues to decrease by half in coming months, according to a nationwide survey released today by Fiverr.
The study, conducted amongst 1,000 SME owners and decision makers in 19 cities across the UK, also found that 58% have turned to freelancers to help manage their remote workload since the crisis took hold.
Despite the gloomy economic outlook, 68% are said to be feeling more optimistic about remote working since Government social distancing measures have been in place.
The data also reveals 61% of SME leaders believe the Government is handling the Covid-19 crisis well. This is tempered by the fact that 37% of respondents who felt unprepared for the crisis blamed the Government.
The survey also offers insight into the different ways the top ten featured cities (Manchester, London, Newcastle, Glasgow, Cardiff, Belfast, Birmingham, Bristol, Liverpool, Leeds and Exeter) are coping with the crisis.
Manchester uses online freelancer marketplaces more than any other city, with 72% of SMEs buying into remote work practices, which was more than any city surveyed. Meanwhile, 66% of Londoners listed the flexibility of enforced remote working as a positive thing.
Some 84% of SME owners in Bristol said they felt more connected to their families as a result of the lockdown, and 57% feel more connected to employees, more than any other city. However, Newcastle was the UK’s most underprepared city with 64% of SMEs in the north east city having felt quite or completely unprepared.
Down in Exeter, SMEs are said to be the UK’s most optimistic, as 68% felt upbeat about their future prospects once the Covid-19 crisis has passed.
It has also been possible to rank all the cities (with a minimum 50 respondents) in terms of how well they’ve adapted to remote working conditions, by ordering them according to the percentage of respondents who claimed productivity has increased as a result of remote working.
The survey data gives a number of hints about what the future might hold for UK SMEs, including the revealing statistic that 29% of UK SMEs plan to increase flexible working post-Covid-19. And, many are hoping to fight through the economic downturn, with 50% investing in digital and traditional marketing in response to the crisis.
A phishing email scam is already being used to target business owners applying for the government’s Coronavirus Job Retention Scheme. Cyber criminals are exploiting the aid package with a highly realistic bogus email, purporting to be from HMRC.
The email, revealed today by the Lanop Accountancy Group, is targeting business owners using official HMRC branding and purports to be from ‘Jim Harra, First Permanent Secretary and Chief Executive of HMRC’. Around 50 business owners have so far reported receiving the suspicious emails to Lanop after noticing the email was sent via an obviously dubious address, despite its user title being ‘HM Revenue & Customs’.
The email asks for the bank account details of the recipient and includes the following message with typos. “Dear customer, We wrote to you last week to help you prepare to make a claim through the Coronavirus Job Retention Scheme. We are now writing to tell you how to access the Covid-19 relief. You will need to tell your us which UK bank account you want the grant to be paid into, in order to ensure funds are paid as quickly as possible to you.”
Recent research from cyber security company Barracuda Networks has suggested that Coronavirus-related phishing emails have risen by 667 per cent since the start of March. The scams included fraudulent communication purporting to be from the World Health Organisation (WHO) and the NHS and private health suppliers selling facemasks and other personal protection equipment (PPE).
Aurangzaib Chawla FCCA, Managing Partner, Lanop Accountancy Group comments: “We're calling upon all businesses to think twice before handing over bank details and making bank transfers in response to email requests during this crisis. Cyber crime is rising rapidly and this is the first of what we expect to be many scam emails, designed to trick unsuspecting owners into handing over private company data. We are also offering free advice about how to tackle these scams and reporting any suspicious activity direct to HMRC.”
Cyber security expert Chris Ross, SVP, Barracuda Networks adds: “We’re seeing a sharp rise in phishing emails relating to the Covid-19 outbreak and this example underlines how hackers will prey upon vulnerable business owners who are trying to protect jobs.
As always with these scams, the victim is encouraged to disclose personal data and financial information under the false assumption that the email is legitimate. It is absolutely vital that businesses have the cyber security systems in place to identify and quarantine phishing emails and ensure that every employee is properly trained to spot suspicious communication and think twice before giving out personal information.”
Take-up of the Job Retention Scheme has been swift following its online launch earlier today. HMRC chief executive Jim Harra told the BBC Today programme that 67,000 claims for workers had been made in the first 30 minutes alone.
Tide, the UK’s business banking platform, has launched a new Invoice Protection product in partnership with insurance solutions provider Hokodo, to help micro, small and medium-sized businesses protect their cash flow against the late and non-payment of invoices.
The Coronavirus crisis is having an immediate and potentially long-term impact on the UK economy, and a serious knock-on impact on SMEs. The threat of increases in late payments, non-payments and insolvencies means small businesses are being put into a precarious position, whereby an unpaid invoice or late payment could leave them facing insolvency.
To combat this, Tide has teamed up with Hokodo to offer Invoice Protection to its members, helping to protect their businesses and deliver added income security. Invoice Protection will allow Tide members to protect their cash flow against uncertainty and guarantee the payment of invoices, even if the customer does not pay.
Hokodo takes care of debt collection on overdue invoices, and if the debts can't be collected or the customer is insolvent, then Hokodo protects 90% of the invoice value. Members can choose which invoices they would like to protect, up to the value of £20,000, for a small fee (typically between 0.3% and 1% of the invoice value).
In addition to being able to protect their invoices, Tide's members will also benefit from additional insights into their customers' financial health. Members will have the ability to assess risk, improve their credit decision-making, and have confidence in taking on new business in these uncertain times.
Amit Kahana, VP of Credit Services for Tide said: “We know that overdue invoices put a real strain on SMEs even at the best of times. Our research from late 2019 told us that UK SMEs are chasing a total of £50bn in late payments at any one time, and spend 1.5 hours per day chasing these invoices.
Considering the situation we are now in, it is more important than ever that small businesses are able to protect themselves as best they can. Invoice Protection will protect Tide members against the risk of non-payment of invoices, reduce the time wasted on chasing and give much-needed peace of mind.”
Richard Thornton, co-Founder at Hokodo added: “As the impact of Coronavirus continues to intensify, many SMEs will be worried about what the next few months will bring, whether they’ll receive payment, and whether they or their clients face the risk of insolvency. It is now more vital than ever that SMEs put the right measures in place to deal with any potential risks.
Invoice protection can help small businesses avoid financial distress and provide them with some peace of mind, particularly in times of crisis such as these, by guaranteeing payment of invoices. By partnering with Tide, we’re proud to be supporting SMEs and giving them the opportunity to protect their cash flow.”
A new tax on digital services should be delayed for a year according to TechUK, which represents the likes of Facebook, Google, Apple and Amazon amongst hundreds of others.
The Digital Services Tax was launched at the beginning of April with the government introducing a new 2% tax on the revenue of search engines, social media services and online marketplaces, which derive value from UK users.
According to the government, any business will be liable to the digital services tax when the group’s worldwide revenues from digital activities are more than £500 million and more than £25 million of that comes from UK users.
Once over the allowance of £25 million, tech companies will incur the revenue tax of 2%. HMRC is spending up to £8 million in order to enable both new IT systems and processes to be developed, as well as enlisting additional staff to monitor and administer the new tax.
Revenues could boost the Treasury coffers by over 440 million however, with Google alone expected to pay around £32 million out of its £1.6 billion sales in the UK.
Meanwhile, TechUK has claimed that the government should put the new levy on hold, for at least a year, in order for tech companies to adjust, particularly in the wake of the coronavirus pandemic. The government states that the objective of the new policy is to address the issue of “misalignment between the place where profits are taxed and the place where value is created.”
Critics have accused tech companies of using underhanded tactics to try and delay paying the new levy. The digital services tax should, says TechUK, be postponed while businesses tackle challenges faced by the current health crisis and its subsequent after effects including a widely predicted economic downturn.
Launched in 2013 with the vision of championing the tech sector, TechUK is one of the UK’s leading technology membership organizations with over 850 members.
Microsoft has partnered with San Francisco-based fintech startup Plaid to develop a new software app called Money in Excel. The collaboration will allow people to automatically import their bank and credit card account data into the personal finance tool. The software will be available to Microsoft 365 subscribers in the US initially.
The Money in Excel app will let users manage, track and analyse their money and keep track of their spending habits, all within the space of the Excel spreadsheet application.
Financial accounts are connected via a Plaid Link from within Excel. Users can then import transactions and account balances automatically via connections with over 11,000 financial institutions in the USA, Canada and also Europe.
Plaid says that in the US it supports nearly every institution from the major retail banks to community credit unions. Money in Excel users will get a monthly snapshot that features personalized charts and graphs, collated from your data. The fintech app can be further customized using templates that are most relevant to your spending patterns, flagging up key areas such as recurring expenses, net worth and more.
In a blog post Eric Sager, COO, Plaid, said: “Money in Excel is powered by Plaid and essentially turns the spreadsheet software into a fintech app – letting you sync your balances and transactions from financial accounts and easily categorize and analyze through charts and templates.”
