14th July, 2022
It is always tricky to ask a travel shopper to complete few extra steps as they are about to complete a transaction.
A study, featuring shoppers in the UK, France and Italy, has indicated that even as more than 7 out of 10 are open to those extra steps in favour of protection against fraud, what they aren’t going to forget is a “bad” or a “frustrating” checkout experience.
This study by Signifyd shared that 36% of UK consumers have been unable to complete an online transaction due to new Strong Customer Authentication (SCA) regulations, an element of the PSD2 legislation introduced across the European Economic Area to help protect customers from fraud while they are shopping online.
It also pointed out that the data has “shown lower conversion rates across countries subject to the new rules, though conversions — and the amount of friction online consumers face — vary significantly by country”. A key issue that needs to be look at is relying on an outdated version of 3D Secure. It must also be realised that a substantial number of transactions can fall outside the requirement and SCA review. Overall, look at CX, exemptions and exclusions, revenue and low rate of fraud.
- Merchants need to look at smarter ways to authenticate and count on travel sector-specific data elements for risk assessment. How to make use of advanced behavioural biometrics and digital fingerprinting backed up by machine learning models to improve SCA?
- How to leverage open banking at the time of checkout?
- Evaluate key metrics – the impact of SCA on customer journey, level of fraud, chargebacks etc.
- Optimal 3DS UX
- White-list trusted customers and transactions for increased acceptance
By Ritesh Gupta, Ai Events
