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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Card Networks Deploy Delegated Authentication: Everybody Wins!
The Benefits of Delegated Authentication to Merchants, Issuers, and Cardholders:
- Merchants benefit from delegated authentication in the ability to control all aspects of the customer’s payment journey and prevent cart abandonment.
- Equally important, merchants can shift the liability to the issuer (Mastercard program) if the authentication is FIDO compliant.
- Issuers are relieved of the need to manage certification of consumer wallets & devices, as this is done by the networks.
- Issuers also receive visibility of security and functional measures taken by the authenticator ensuring SCA & PSD2.
- Cardholders will begin to experience a more consistent authentication process, not only for payments but also access to bank accounts.
- As merchants adopt FIDO, cardholders will no longer experience two authentications: one at the account level and one at the payment level.
- As biometrics proliferate, the technology will eliminate passwords across all validators.
With Delegated Authentication, card networks enable merchants to control the entire cardholder experience. Issuers reduce costs while consumers can use biometrics for online shopping and passwords slowly fade away.
With Delegated Authentication, qualified merchants can use their own authentication process to approve purchases or pass the cardholder’s FIDO-based credential to the network for approval.