Worldpay has introduced its Authentication Optimization Service, a patent-pending AI-driven solution designed to maximise payment approval rates while minimising checkout friction for merchants using 3DS authentication.
The service is available to merchants in non-3DS-regulated markets, providing a simple approach to global payment processing.
The service leverages AI and deep insights from billions of global transactions processed by Worldpay to make real-time authorisation decisions. Transactions are routed intelligently, applying 3DS authentication only when required by regulatory compliance or when AI predicts a high probability of issuer approval. This targeted approach reduces unnecessary authentication steps, enhancing the customer experience without compromising security or compliance.
Early pilot results demonstrate the service’s effectiveness. A two-month trial with a major cruise line, using 3DS for all transactions, recorded a 5.5% increase in authorisation rates on average, with double-digit improvements in markets where strong customer authentication is not mandatory. The AI-powered system also showed minimal impact on fraud, with only one chargeback reported in two months for transactions bypassing 3DS.
Key features and benefits of Authentication Optimization Service
· Maximised payment approvals: adaptive AI analysis increases authorisation rates while reducing declines.
· Better customer experience: by bypassing unnecessary authentication steps, the service reduces friction and abandoned carts.
· Data-driven adaptation: insights from billions of transactions allow continuous optimisation of approval strategies in response to changing issuer and market behaviour.
· Simple integration: merchants using Worldpay’s 3DS Flex can enable the service with no additional integration or data requirements.
· Optimised fraud protection: fully authenticated 3DS transactions maintain high security standards while enabling smoother checkout for lower-risk payments.
Worldpay works closely with partners, including Visa, to ensure that AI-driven approaches align with issuer risk management while supporting merchant objectives. By integrating AI, Worldpay’s Authentication Optimization Service positions itself as a solution for merchants seeking to improve payment approval rates, reduce friction, and maintain strong fraud controls in international and domestic markets.
