Many businesses these days are taking advantage of the visa delegated authentication program. The e-commerce market is growing very fast, and so is payment fraud. Among the biggest motivations behind PSD2 is to make payments safer and more secure. Strong customer authentication is a key part of this, but it that does not mean that you should ignore the impact of added security measures on the customer checkout experience.
If you are worried that the friction caused by these extra steps can lead to an increase in abandoned carts and a loss in online sales, you are not alone. You are probably want to know how the visa delegated authentication program can help you win the battle between conversion and compliance.
Delegated Authentication is exciting since it offers an alternative payment authentication without compromising on customer experience or security. Issuers are able to allow a third party to do the authentication. That could be a digital wallet provider, an acquirer, or you as the merchant.
Payment networks, including MasterCard, Visa and GIE Cartes Bancaires, have begun offering delegated authentication broker programmes. The merchants who qualify can perform authentication through their own interface.
Each scheme has its own conditions and criteria for registration, but benefit across the board is lower cart abandonment, greater control as well as an increase in transaction approval rates.
Delegate dauthentication can help reduce cart abandonment with fewer steps. We know that having an extra layer of security with electronic payments is valuable especially when it comes to tackling fraud. However, the added steps create friction.
In a typical purchasing journey, a customer experiences two authentications. The first one is with the merchant when they log into their account, and the second one is with the issuer when it is time to pay. The problem here is that the more hoops that a customer has to jump through to make a purchase, the less likely they are to complete that purchase.
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