Two trends are clearly emerging: 1) E-commerce is growing significantly faster than traditional retail worldwide. 2) customers are increasingly using mobile devices for online shopping. Any retailer or bank that wants to benefit from this trend needs the right technology.
The EMV 3-D Secure process has been providing greater security in e-commerce for over 20 years. It was only with version 2.1 that a seamless user experience and higher security could be achieved at the same time. With EMV 3DS 2.2, the focus is on user-friendliness.
The most significant advantages of 3DS 2.2
3DS 2.2 offers improved identification and verification functionality and seamless authentication. Furthermore, new authentication channels are supported. All this serves to further improve the user experience.
An important innovation is that 3DS 2.2 can also support non-payment applications. This makes it easy to load a card into a wallet or verify that a merchant is on a whitelist.
The protocol has also been extended in some places to ensure smoother payment processing. There are now specific indicators that a transaction risk analysis or strong customer authentication has been performed. Additionally, it is now possible to send data to the issuer as pure information and not as an authentication request.
The new data element "3DS Requestor app URL" ensures seamless communication between the issuer app and merchant app. This means that - after successful authentication and payment approval by the customer - the successful completion of the transaction is displayed directly in the merchant app.
Improvements for merchants, customers and banks
In order to further promote the distribution of EMV 3DS, Mastercard and Visa stipulate its use by various mandates. And in Europe, the deadline set by the European Banking Authority EBA also applies: every merchant must have introduced strong customer authentication by 31 December, 2020. Regardless of this legal framework, all parties involved benefit from EMV 3DS.
Merchants have the appropriate technology at their disposal, which allows seamless integration. There are fewer abandoned purchases in their online stores and therefore higher sales.
Customers experience a faster and less complicated checkout; in some cases with one-click payment. The customer experience is independent of whether they are using a laptop, tablet or smartphone.
Banks can improve their risk management using the data exchanged and offer more authentication methods to their cardholders. This leads to approval of more transactions and increasing the satisfaction of both cardholders and online merchants.
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EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.