Payment organizations to use consumer authentication for ecommerce

Friday 17 March 2017 10:02 CET | News

Merchants across the world have been starting to use more consumer authentication programs, according to the Consumer Authentication Survey, sponsored by CardinalCommerce.

The Consumer Authentication Survey included merchants, fraud and ecommerce vendors, payment providers, card issuers, and card associations and is designed to provide insights into market use and sentiments regarding consumer authentication programs such as Verified by Visa and Mastercard SecureCode.

The survey found nearly 25 % year-over-year growth in the share of North American merchants who use these programs, from 29 % in 2016 to 36 % today.

The survey included questions about the recently approved update to EMVCo’s 3-D Secure protocol – 3DS 2.0. Of merchants not using consumer authentication programs today, about 40 % said they are more likely to implement such programs in the future after learning about 3DS 2.0.

In the 2017 survey, merchants not using consumer authentication said it was primarily because online volume or fraud attempts were too low to warrant its use. Concerns around sales conversion fell to the third most cited reason. The second most cited reason in the 2017 survey was concerns about the impact consumer authentication might have on the user experience.

Meanwhile, the number of merchants reporting a negative impact on user experience from consumer authentication fell from 38 % in 2014 – the first year of the survey – to 25 % in 2017.

For more information about CardinalCommerce, please check out a detailed profile of this company in our dedicated, industry-specific online company database.

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Keywords: CardinalCommerce, online security, online fraud, fraud prevention, card fraud prevention, payment fraud, digital identity, ecommerce, retailer, merchants, study
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime