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Higher conversion, lower risks: how 3ds 2.1 technology will increase the income of an online store

ConcordBank has implemented 3ds 2.1 technology. This is a new, better way to confirm payments on the Internet. It allows you to solve 2 main problems of online payments: it increases conversion and reduces the possibility of fraud.

In offline stores, when paying with a card, in 96% of cases, the operation is successful, and on the Internet - only in 80% of cases. Because of this, online merchants are losing millions. Imagine: a customer typed in a shopping cart, but the payment failed for a technical reason, or because the one-time password did not come or the bank rejected the transaction as suspicious. The merchant will not always have a second try. 3ds 2.1 technology will bring the conversion of online stores closer to the conversion of retail chains.

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“The reason for low conversion rates in online stores is often the fight against fraud and a multi-stage access control system," explains ConcordBank co-founder Olena Sosiedka. “3ds 2.1 technology, by offering more fields for filling out the transaction participants, makes life difficult for thieves. Online stores will be able to flexibly configure the system depending on the results of the risk assessment and less often ask for a one-time password ".

Visa Secure today uses the latest EMV 3-D Secure (3DS) specification, an updated protocol for exchanging data between merchants, card issuer and cardholder that helps in a more convenient way to authenticate the cardholder. With this protocol, the cardholder can verify his identity to the issuing bank or other organization that issued the card when making payments in an online store or at the time of a transaction without presenting a physical card. An additional layer of security helps prevent unauthorized transactions and protect merchants from fraud.

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“Visa Secure provides better protection against fraud, makes payment more convenient for cardholders and increases the number of completed purchases, thus providing benefits to both cardholders and merchants and banks. Visa Secure helps merchants and banks better detect and prevent fraud by more than 10x the amount of data available to issuers for effective risk analysis and decision making. Buyers, on the other hand, get the opportunity to make payments in a more convenient and secure way using various channels, including a browser on a smartphone, a mobile application and an electronic wallet. It is important that the technology is adapted for different wearable devices, so cardholders can intuitively work with authentication. The exchange of information is also provided, which will help the issuer to determine the scoring of the transaction and not involve the cardholder in the authentication process", said Vera Platonova, senior vice president and general manager of Visa in Ukraine, Georgia, CIS countries and Southeastern Europe.

Ukrainian banks are already actively implementing the Mastercard Identity Check Program, which is based on the new EMV 3DS protocol.

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“We plan that the active phase of migration will end before the end of this year. In Europe, this process, by the way, is also very active, which is dictated by the strict implementation timeframe - until December 31, 2020, - says the vice president for business development of Mastercard in Ukraine and Moldova Yuriy Batkhin, - We are confident that our e-commerce market will actively use all the innovations that are incorporated in new approaches to authentication of payments in e-commerce. First of all, this will ensure the convenience of customer identification when paying through mobile applications, mobile versions of browsers or chat bots of popular instant messengers. The authentication process is actually "adapted" for the client, allowing the risk assessment of the operation to be carried out as seamlessly as possible for the client, including using biometric technologies. At the same time, customer data is reliably protected".

What is also important is that client authentication occurs not only at the time of payment, but also when users add their cards to digital wallets or personal accounts in online stores, which creates additional convenience for both the user and the online merchant when making online -payments in the future.

The new technology certainly brings many advantages for all participants in the e-commerce market, - assures Yuri Bakhtin, - Merchants and their acquiring banks will see a benefit in increasing the conversion of payments due to improved approaches to customer authentication. Reducing the level of fraudulent transactions in e-commerce should also be an important factor for the industry. Users will certainly appreciate the convenience of biometric authentication through their banks' apps or mobile wallets, while issuers and merchants will appreciate the growth in approved and completed transactions. The results of the Mastercard Digitalization Trust Survey show that 60% of banking customers in Ukraine would already like to use biometric authentication to confirm payments - fingerprint, face ID, voice or retinal identification. I am sure that the introduction of Mastercard Identity Check technology will accelerate the development of digital commerce, provide undeniable advantages for the user in terms of the convenience of making payments, and will also contribute to an increase in the overall level of trust in digital payments on the part of all participants, which will result in a positive trend in the growth of the number of approved transactions with using EMV 3DS authentication".

Also ConcordBank became the first among non-state banks to launch Internet acquiring Concord Pay with options from Apple Pay and Google Pay, which allowed the leaders of the Ukrainian online business to double the conversion of their trading platforms and entered the TOP 10 most successful banks countries in the categories "Internet banking" and "Mobile banking" at the FINANCIAL CLUB AWARDS 2019.

Material taken from the source: psm7.com

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