According to the press release, the analysis of March 2021 data illustrates significant transaction failure with the estimated European failure rate on transactions at 30% compared to 31% in February 2021. While the modest improvement is welcomed, failure rates in Europe are still extremely high – with Italy, Belgium, Spain, and Germany significantly higher than other countries, at 42%, 39%, 35% and 35%, respectively.
The estimated failure rate in Spain has seen a sustained improvement over time, although the Spanish failure rate was almost double the European weighted average in August 2020 at 59%. After initially trending upwards from September 2020 until January 2021, the estimated failure rates for Germany and Italy have continued to decline between January 2021 and March 2021.
These high rates of transaction failure are particularly concerning as enforcement has reached relatively lower transactions values for several European countries as part of their respective phased ramp-ups, pointing towards significant friction at checkout for consumers. Therefore, according to CMSPI, the issues merchants and consumers are facing in relation to SCA are very much alive.
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.
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