CPoI (Card-Present over Internet) is changing the way we shop online by bringing in-store payment security to e-commerce. This innovative technology reduces fraud, eliminates false positives, and makes online shopping accessible to all demographics.
In today’s digital economy, e-commerce has become an integral part of our daily lives. However, with the convenience of online shopping comes significant security challenges. According to UK Finance, there were more than 2.1 million cases of card-not-present (CNP) fraud in the UK in 2023, causing gross losses of £350.5 million. This staggering figure highlights the urgent need for more secure payment methods in the online space.
The problem isn’t limited to the UK. Here in New Zealand, financial losses from online scams are reaching alarming levels. Recent findings from Netsafe and the Global Antiscam Alliance reveal that Kiwis have lost over $2.3 billion to scams this year alone.
Their survey of more than 1,000 New Zealanders discovered that approximately one-third had fallen victim to scams, with victims losing an average of $3,100 each. These concerning statistics highlight the growing sophistication of online fraud and the vulnerability of current payment systems.
Traditional online payment methods require customers to share their card details when making purchases. This card-not-present approach has several inherent weaknesses that leave both consumers and merchants vulnerable.
“Shopping online currently requires customers to share their card details when they pay, a process considered more vulnerable to fraud because of the risk of card details being compromised,” notes a recent BBC article about CPoI technology.
This vulnerability isn’t just theoretical—it translates into real financial losses for businesses. According to information on the CPoI website, the cost of chargebacks to online merchants globally exceeds $40 billion each year. Additionally, retailers are charged higher processing fees for CNP transactions due to the increased fraud risk.
Perhaps even more concerning is the issue of false positives—legitimate transactions incorrectly identified as fraudulent and blocked by anti-fraud solutions. The CPoI website reports that false positives cost online retailers an estimated $443 billion per year in lost sales.
Card-Present over Internet (CPoI) represents a revolutionary approach to online payments. Developed by Burbank Software, this technology enables online merchants to accept card-present payments—the same secure method used in physical stores—in online channels.
The concept is elegantly simple: instead of entering card details on a website, customers tap their payment card against their own mobile device and securely enter their PIN to complete the payment. The physical card and PIN confirm the true cardholder’s identity, significantly reducing the opportunity for fraud.
As Justin Pike, the founder and CEO of Burbank Software (creators of CPoI), explains, “CPoI transforms e-commerce by significantly reducing fraud and eliminating false positives. It also opens up internet purchases to all ages and offers consumers the highest level of protection when shopping online.”
The CPoI payment process is remarkably straightforward and mimics the familiar in-store experience:
Importantly, this system doesn’t require customers to download an app or share their card details. It leverages existing technology that consumers already know and trust, making adoption much easier.
The inspiration for this technology came from an unlikely source. Justin Pike credits his mother-in-law, Mary Maddy, who struggled with internet shopping during the pandemic. This conversation sparked the development of CPoI, which aims to make online shopping accessible to all demographics, including those who might be wary of traditional e-commerce payment methods.
While enhanced security is the primary advantage of CPoI, the benefits for both consumers and merchants extend much further.
For shoppers, CPoI offers a familiar, trusted payment experience that doesn’t require sharing sensitive card details online. This is particularly valuable for older generations who might be less comfortable with technology but are familiar with chip-and-PIN payments from in-store shopping.
The approach also eliminates common friction points in online payment processes. According to CPoI’s website, their solution requires:
Instead, it provides a simple, secure, scalable payment experience that mirrors the in-store checkout process that consumers have been using for decades.
For online retailers, the advantages are equally compelling:
Paul Rodgers of Vendorcom, a membership organisation for key players in the merchant payments community, believes CPoI offers a “cost advantage” to online retailers because it could lead to cheaper processing fees and reduce their exposure to fraud.
CPoI technology is gaining traction in the payments industry. Global businesses from the electronic payments sector, including payment platforms Elavon and UATP, have shown interest in the technology.
Constantino Voulgaris, chief executive of Transactility (the commercial arm of jPOS, a software used in more than 110 countries to route electronic payments), has described CPoI as a potential “drastic game changer” in the industry.
“It’s good for everyone, for businesses like us, for merchants, for the consumer, for everyone,” he added, according to the BBC article.
Pike hopes that consumers will start to see CPoI being offered as a payment option before the end of 2025. As this technology continues to develop and gain wider adoption, it has the potential to fundamentally transform the online shopping experience, making it more secure, inclusive, and frictionless for everyone involved.
In a world where online fraud continues to evolve and escalate, innovations like CPoI represent a promising approach to addressing these challenges—not by adding more complexity, but by returning to the simple, proven security of card-present transactions.
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