CMSPI’s analysis of September data yields an estimated European failure rate on transactions of 29% compared to 26% in August 2021. This estimate failure rate is not only too high, but represents a worsening of the situation with an estimated EUR 90 billion of sales at risk when extrapolated over a 12 month period. Given the impact of this in terms of lost revenue for merchants, it is now more important than ever for retailers to actively optimise their ecommerce arrangements and counteract some of the impacts of SCA on revenue.
Source: CMSPI, Strong Customer Authentication – Impact Assessment: September 2021
According to CMSPI, failure rates on transactions being challenged through 3-D Secure V2 are still high, with estimated failure rates in Belgium, Germany, and Italy at 44%, 36%, and 37%, respectively. Furthermore, since August 2020, on a European weighted average basis, CMSPI’s estimates suggest that failure rates have improved by six percentage points from 35%.
CMSPI is a global, independent payments consultancy, working exclusively with some of the world’s largest merchants, implementing optimal payments strategies and supply chains. The consultancy collaborates with merchants only and has no affiliation to any financial institution or bank. Besides, CMSPI's advocacy and economics team works closely with global regulators and trade bodies, representing merchants in collective efforts to campaign for fair and transparent payments landscapes worldwide. To learn more about CMSPI’s Strong Customer Authentication (SCA) Impact Assessment, please click here for August 2021.
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