On the 14th September, the EU formally introduced its Strong Customer Authentication (SCA) regime as part of the PSD2 roll out. Whilst this regulation aims to ensure greater security for all parties, it also creates potential problems for companies across the payments industry, especially in terms of consumer education, the roll-out of new software, and compliance between all points in the process.
Senior industry executives and commentators are predicting headaches, from slow adoption of software-based solutions embedded in the checkout process, through to increased cart abandonment and additional risk from the adoption of One-Time Passwords (OTPs) and other proposed solutions – writes Risto Savolainen, CEO Maxa.
Many are saying the implementation of SCA across Europe could take years: we have already seen regulatory and industry bodies in the UK and elsewhere ask for bespoke implementation plans stretching out over the next two years.
To help navigate e-commerce and SCA, our team at Maxa has launched a White Paper: Growing E-commerce after SCA, which sets out the challenge our industry faces. This White Paper looks at what’s at stake with SCA, from the potential for lost revenues through to an overview of solutions currently proposed.
We also see SCA as an opportunity to bring proven technologies in contactless payments to the e-commerce market. With contactless now the preferred payment method for consumers across Europe, and e-commerce revenues set to grow at 7-8% per year over the next few years, a successful SCA solution will embrace these trends and ensure consumer adoption by working with what people know and like, rather than trying to change their behaviours.
The White Paper proposes a ground-breaking solution for SCA that delivers what everyone is looking for: faster, easier transactions, full regulatory compliance – and improved security. By transferring the ease and familiarity of contactless payments to the e-commerce market, consumers will have fast, convenient and secure payments with one tap.
For issuers, acquirers and merchants, contactless e-commerce payments will ensure continued sales and revenue growth at a time when many in the market are concerned about stuttering growth as SCA bites. There are also particular advantages for Mobile Network Operators (MNOs) through contactless mobile – something we review in the White Paper.
Please click here to download the White Paper and learn more about contactless mobile as an innovative solution to your SCA challenges.
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