In a rapidly evolving telecoms market, more organisations are exploring Communications Platform as a Service (CPaaS) to evolve their offerings and enhance customer experience. As CPaaS adoption continues to increase, service providers need to understand the risks they face from fraud and platform inefficiencies.
According to our new report with Mobilesquared, “Are Your CpaaS Revenues Under Threat?”, CPaaS is expected to generate revenues of $29.7 billion in 2022, rising to $52.8 billion in 2026.
Despite this growth, the research conducted by Mobilesquared also reveals that revenue leakage from fraud and platform inefficiencies will cost CPaaS $974.3 million in 2022, rising to $1.4 billion in 2026. The research reveals that the top challenges for CPaaS providers are fighting fraud and achieving consolidation.
More specifically, voice is the channel expected to experience the greatest threat from fraudulent practices and platform inefficiencies, accounting for approximately 34% 34% of total fraud in 2022, and rising to an estimated 39% by 2026.
With over a quarter of respondents believing that they are not susceptible to losing revenues to fraud or platform inefficiencies, it is critical that CPaaS providers understand the risk to revenue. They need to have the right solutions in place to tackle potential business disruptions and deliver better communications.
The Top Vulnerabilities in CPaaS
The CPaaS industry is a rapidly expanding market that holds many opportunities and challenges for service providers.
Over recent years, we’ve seen an increase in threats to omnichannel revenue such as robocalling and termination charges. The most common challenges that voice players are currently facing are
- Consolidation – The process of consolidation has the potential to destabilise platform security during any period of service or network integration.
- Fraud – Termination rate charges are the biggest threat to voice traffic, followed by traffic inflation. On top of this, CPaaS providers are also facing challenges from supplementary threats including information accuracy and premium rate call back.
With these challenges set to cause business disruption to CPaaS players, service providers must act now to secure future revenue streams.
The Mobilesquared statistics show the tremendous growth potential in the CPaaS market. As digitalisation becomes more far reaching, the changing needs of modern consumers are pushing service providers to innovate and integrate their service offerings.
Companies are moving from very highly specialised messaging, voice or call centre platform spaces and entering this market space to take advantage fully maximise the potential of the huge opportunities available in CPaaS. However, we can also see the high levels of fraud that they expect to encounter and the large losses they expect to incur as a result.
The research shows that traditional voice and messaging service providers need to be ready to enhance their offerings to drive growth in CPaaS.
Overcoming Challenges with Number Information
Enabling these providers to be able to manage termination rates, accurately deliver traffic and handle fraud is critical to maximising managing revenues and profits.
By deploying our Number Information services, we are supporting CPaaS players in the fight against fraud and to achieve seamless unified consolidation.
With our solutions, CPaaS players benefit from the ability to overcome consolidation challenges by seamlessly routing calls and messages without failures or delays due to different range ownership or unknown ported numbers. It provides service level improvements by allowing CPaaS providers to route directly, rather than through multiple intermediaries.
We also help CPaaS players tackle fraud instances with real-time call rejection of invalid numbers and identifying high risk B-numbers that may be associated with International Revenue Share Fraud (IRSF), arbitrage or other commercial threats.
Today’s communications market is ready for evolution. To successfully capture the huge opportunity in omnichannel, service providers must embrace diversity with their end users in mind.
If you want to learn more and find out how we can solve the top challenges for CPaaS then contact us here: https://www.xconnect.net/contact