Current technologies in digital payments are exposed to constant updates. They aim to satisfy customers’ highly increased demands and expectations for simple and secure online shopping. This goes especially for online web shopping, with still missing parts on the way to achieving highly modernised and, at the same time, highly secure digital payment on the end user side. An example is customer payment authentication, which is currently an expensive truth for retailers since customers, mainly impulsive e-shoppers, do not appreciate friction. It gives them a chance to change their mind and quit shopping.
Combining several technologies to cover different payment aspects could be crucial for business success. Considering a new one, as is the Secure Payment Confirmation, guaranteed with the latest EMV 3DS 2.3.1 payment protocol version (a regulatory body of the world’s most extensive card networks) would fit in the puzzle.
The ecosystem can benefit from introducing Secure Payment Confirmation, a secure payment standard with FIDO2 (a password-less authentication method based on public-key cryptography). The mixture is secured with biometrics and done on the same device where it was initiated, whether a desktop computer, tablet or mobile device, without jumping over different devices and looking for passwords.
SPC makes it easy as unlocking your mobile phone.
With the SPC introduction, customers will no longer be pushed back and forth between the merchant’s app and bank app at the checkout, and they will be able to complete their shopping with just a click. It’s an experience that embraces secure, convenient, and fast authentication for a smooth customer journey and success in the transaction.
“I need easy and simple e-shopping. I don’t want steps that make it long and complicated. It makes me change my mind,” says Clara S., 32, working as a marketing manager. “it’s not fun facing all the friction during a single payment.” The demands of most online shoppers are similar, and their busy lifestyle cultivates this trend. Today’s living does not allow anything else but simplicity during e-payment. And that ease is achievable only with the Secure Payment Confirmation.
SPC in favour of the end-users
SPC technology enables a consistent authentication experience across Web sites and platforms. It boosts security by allowing the shopper to approve payments on the e-store forefront while keeping the card issuer in charge.
The online web shopper can easily buy their needs and wants on any merchant’s e-shop with a simple face or fingerprint scan. It simplifies the web payment journey to its maximum. It enables seamless shopping while taking care of the shopper’s privacy.
It’s a guaranteed process without frustration, less time-consuming and allows in-flow registration of customers for SPC during the classic online purchasing process.
SPC in favour of the merchants and issuers
Every merchant is expected to set up their online shop in a way it serves the customers’ demands, which is one-click authentication while making a safe payment. And that’s it. Full stop.
Taking EMV 3DS 2.3.1 into consideration means that there are security protocols behind the whole process that needs to be followed. But using the right ones makes everything else invisible to the customer and provides the excellent payment experience that is on demand today. For example, FIDO2-based technology, supported by EMV 3DS 2.3.1 standard, keeps the additional authentication invisible to the customers and makes the process smooth.
Both issuers and online merchants can use authentication based on SPC.
For example, for authentication to the issuer, it is sufficient for cardholders to confirm a transaction with their fingerprint on their smartphone. If a merchant has registered its customers securely with SPC-capable FIDO credentials, a login to the merchant’s customer account can be used as authentication for payment transactions as a delegated authentication.
It means merchants can offer a super convenient, streamlined checkout experience while maintaining the highest level of security by applying strong customer authentication.
Having said all this, it reduces the merchant’s and issuers’ costs and drives their conversion.
SPC is a necessity, not luxury
According to research studies, during the past 12 months, 70% of consumers in Germany used a laptop or desktop for online shopping, and 86% of those are interested in using biometrics to verify their identity or make payments. Convenience is more important to 83% of people when shopping online now than five years ago. Overall, online shoppers expect more from the technologies than they currently enable.
Data from Oxford University research shows that 92% of banks are willing to adopt biometric solutions. The simple reason behind biometric usage is that it is expected to produce a significant drop in cart abandonments (current figures from the Baymard Institute show that nearly 70% of online shoppers abandon their shopping carts). At the same time, considering the rise of fraud, there is an urgent need to introduce a solution that boosts the security of sensitive shoppers’ data. According to The Paypers” 2022 fraud report: “Payment fraud cost eCommerce merchants 3.6% of their total revenues in 2022. Between 2021 and 2025, merchants stand to lose up to USD 206 billion on fraud”.
This is another reason e-commerce needs new technologies and methods to authenticate shoppers and one more proof that Secure Payment Confirmation is the right one. It meets the security needs and compliance with regulations and handles the apparent friction during the customer journey. Previously executed experiments in the industry prove that it increases the merchant’s conversion by up to 8% and decreases the user authentication time by 2/3 with only trivial amount of fraud.
SPC to move forward digital payments
Today, introducing new technology payment methods in online business is no longer seen as a luxury but more of a necessity which should further answer the needs of demanding shoppers for secure and convenient online payment methods. In the long run, SPC is an excellent step for development and bringing the needed progress in e-business.
Secure Payment Confirmation has yet to be available on the market. As we have pioneered many other already proven technologies, we advocate strongly for its introduction. Netcetera is a reliable partner and a knowledgeable player that can bring out all the technology benefits to its customers. Finally, Netcetera is the first worldwide to get certified with the EMV 3DS 2.3.1 payment protocol version that enables using the Secure Payment Confirmation benefits.
Speeding up and easing the entrance of SPC will only bring progress in e-commerce by significantly decreasing those 70% cart abandonments and allowing the retailer’s e-businesses to grow further. It should improve the function of the overall online payment ecosystem.