Online retailers across the United Kingdom and Europe face additional verification requirements with the introduction today of Strong Customer Authentication. The requirements, delayed from September 2019, require two-step verification for online purchases over €30. In the UK, early adoption was promoted to prepare retailers for the new requirements. However, online retailers may still experience lost sales. As reported in Finextra:
“The data shows, that last month, one percent of shoppers noticed an increase in their online payments being declined. Additionally, 37% headed to another retailer to complete their purchase, while the same proportion said they’re unlikely to shop with a merchant in future if their payment gets rejected without explanation.”
Adoption of open banking as a method of compliance could help lagging online retailers adapt to the new standards:
Nick Raper, director of Nuapay, believes that a shift to open banking payments will provide a way out of the mire for consumers and online merchants: “The industry needs to stop talking about security and look to options already available such as open banking payments to ensure that the consumer impact is minimised and merchants are given the tools they need to remain compliant.”
Finextra reports that Dutch payments platform Ayden is showing only 44% of business are currently prepared for the implementation of the more stringent standards.
Overview by Jordan Hirschfield, Director of Research at Mercator Advisory Group
