More Than Half of Payment Organizations Are Now Using Consumer Authentication for eCommerce
Worldwide use by merchants of Customer Authentication programs continues to increase significantly.
This report comes directly from the fourth annual Consumer Authentication Survey, sponsored by CardinalCommerce and The Fraud Practice. The survey found nearly 25 percent yearly growth in the share of North American merchants who use these programs, this from 29 percent in 2016 to 36 percent presently. Despite this, merchants who only do business North America are lagging behind worldwide usage of consumer authentication, currently standing at 41 percent.
The survey was created to offer insights into market use and sentiments in response to consumer authentication programs like Verified by Visa and Mastercard SecureCode.
The 2017 survey was conducted between October and November 2016 and included hundreds of participants globally. Similar to years past, the survey included merchants, fraud, and ecommerce vendors, payment providers, card issuers, and card associations.
Unlike ever before, this year’s survey included questions pertaining to the recently approved update to EMVCo’s 3-D Secure protocol-3DS 2.0.
Out of all the merchants claiming to not use consumer authentication programs today, about 40 percent said they are likelier to implement such programs down the road once they’ve learned about 3DS 2.0. This year in general highlighted an important change in the main reason offered by merchants in relation to why they are not using consumer authentication. In years prior, merchants claimed the main reason was their concern that similar protocols might negatively impact sales conversion.