Strong Customer Authentication: Friend or Foe?

The payments industry considers SCA a significant risk to conversion in e-commerce.

London, 16 January 2020 – Payment fraud is an increasing problem for online merchants. As e-commerce growth rates rapidly outpace those at the physical point of sale, this is further fueling the growth of card-not-present fraud. To protect consumers and businesses from falling victim to fraudsters, and to preserve trust in online commerce, the European Commission has mandated the use of two-factor authentication for digital payments in the European Union.

This report analyzes the market impact of SCA and how organizations can manage the goal of a frictionless checkout process for digital consumers and the seemingly conflicting requirements of fraud prevention. It is based on an Aite Group and Merchant Payment Ecosystem online quantitative survey of 88 experts from banks, payment service providers, merchants, and other organizations in November 2019.

This 23-page Impact Report contains eight figures and five tables. Clients of Aite Group’s Retail Banking & Payments or Fraud & AML service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions American Express, EMVCo, Mastercard, Ravelin, and Visa.

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