Payment authentication trends your business should take advantage of
Over the course of the pandemic, consumer needs have changed, requiring merchants to adapt. Consumers shopping online now expect and demand frictionless checkout processes and easy payment options.
According to Morgan Stanley, global eCommerce rose from 15% of total retail sales in 2019 to 21% in 2021, and it’s an estimated 22% of sales in 2022.
And experts believe it is even more likely that eCommerce will continue to gain traction. But where eCommerce grows, so does fraud, and equally, fraud incidents have increased by 5% over the last year.
This means your eCommerce shop needs to take security seriously when it comes to checkout. In this article, we will analyse the latest trends in secure authentication, which can be used to create a secure checkout process for eCommerce payments.
Top authentication trends to consider
3D Secure 1.0 (3DS1) improved security but at the cost of a bad user experience: 62% of cardholders abandoned a card or reduced their willingness to pay after a failed transaction. By integrating mobile devices and modern trends into a robust authentication protocol, 3D Secure 2.0 addresses these problems: consumers are asked to verify their identity after a merchant’s contextual data is analysed on high-risk transactions, improving fraud protection. And with the deadline of implementing this protocol by 16 October 2022, now is the right time to look into adopting this trend into your business.
It is becoming increasingly popular to authenticate payments with a user’s face, iris, fingerprint, or even voice as biometrics become more popular. There have been a lot of changes in the use of mobile wallets over the past few years due to the pandemic, which has led to a growth in mobile wallets like Google Pay and Apple Pay. Consumers can now authenticate in-store or remotely using their face or fingerprint using this technology.
Alternative payment options
You can reach more customers around the world and sell more when you use a payment gateway that supports a wide range of payment methods beyond traditional cards that can protect your business from fraud and other security threats. They not only add convenience to your customers’ lives, but they also make payments smooth and hassle-free for them. As well as being great for cross-border payments and international sales, they will give you an edge over your competitors if you use them effectively.
Machine Learning-based pre-authorisation
All EU financial institutions are required by the Payment Service Directive (PSD2) to offer two-factor authentication. By using machine learning models, businesses can pre-authorise customers and reduce both risk and checkout time while maintaining the security benefits of Strong Customer Authentication (SCA). Combining billions of transactions within a customer network, machine learning models can create a complex and highly accurate fraud detection system based on information such as name, email, phone number, physical address, and IP address. For businesses, PSD2 SCA is a promising option for compliance without affecting customers.
Tokenized cards to protect customer data
The chip cards’ purpose was to prevent duplicate card information in physical stores and prevent fraud. Tokenisation has the same goal of preventing duplicate cards digitally. The tokens are generated per each card and every merchant, and they are untraceable. The respective payment partner securely stores the actual payment information, so if hackers manage to steal tokenised data, they will not be able to use it since they won’t be able to reverse engineer it.
Wearable devices for contactless payments
NFC (Near-Field Communication) and QR codes are already being used by some banks and players in the digital payments industry to enable contactless payments. With tap-and-pay, dynamically generated PINs, and wearable devices, contactless payments are not only quick and easy, but they are also more secure than ever before. The wearable devices are linked to the cardholder’s bank accounts and use card tokenisation to complete payments. It is possible for users to generate dynamic PINs through mobile banking apps for every transaction they make.
Implementing strong authentication for your business
When it comes to authentication trends, there is absolutely no such thing as a ‘silver bullet’. It is important to consider several factors when assessing the risks associated with online transactions. For projects to succeed, it’s extremely important, however, to partner with a payments provider with a comprehensive understanding of the payment ecosystem as a whole.
With over 24 years of experience, Trust Payments brings together technology and financial services to create a leading-edge fintech platform.
We offer award-winning risk management, anti-money laundering (AML) and fraud detection powered by Artificial Intelligence (AI) in our TRU Fraud Check & 3D Secure 2 solution, which reduces chargebacks and increases security.
Learn more about Trust Payment’s authentication services and find out how we can grow your business today.
Security is our top priority at Trust Payments and we strive to ensure that all data is kept secure at all times. We keep all customer data safe with AES256 encryption, SSL Certificates, and a minimum of TLS1.2 between your website and our datacentres.
Our systems are scanned quarterly using the Qualys PCI Platform, an independent Qualified Security Assessor (QSA) and approved vendors – Omnicybersecurity (UK) & Forgenix (US) – to ensure compliance with the security requirements of the card schemes.
We follow a number of rigorous security procedures on a daily basis including, but not limited to, continuous monitoring of our perimeter, dark web monitoring, and internal checks to ensure that CIA triad is maintained at all times.
Trust Payments Ltd 2023
Trust Payments Ltd, No.1 Royal Exchange, London, EC3V 3DG. A company registered in England and Wales with Company Number 11976895.
Trust Payments (MALTA) Limited, Reg. No. C 56013, Ewropa Business Centre, Triq Dun Karm, Birkirkara, BKR 9034, Malta VAT number: MT23440004