If for the online sales sector 2020 was the year of double-digit growth, 2021 will be remembered for the implementation of the European PSD2 regulation which, with the introduction of Strong Customer Authentication (SCA) or two-factor authentication, it has revolutionized the online shopping experience.
But it’s not all gold: a Mastercard analysis – carried out in collaboration with Axerve – highlights how, in the period between 1 January and 14 April 2021, Italy is among the least effective European countries in terms of authentication rate (in April, 60.2% compared to an average of 74.5%).
Even the application of frictionless authentication (i.e. without two-factor authentication by the buyer) – equal to 12.7% of the total – recorded in our country a figure far from the European average which stood at 29.6%.
These data not only provide a picture of the Italian market in terms of the application of the SCA, but also explain why this is currently the case losing approximately 43.9% of transactions with 3DS.
This figure far exceeded the European average, which stood at 25.3% in March. This means that for just under half of the payments the request for two-factor authentication was not completed, actually generating a drop in sales.
Italy is among the least performing European countries (5% against 3.4% of the European average) also with respect to the percentage of negative outcomes, due to technical problems of payments made with active 3DS2 protocols.
It is therefore evident that it is necessary to improve the process through solutions that reduce the impact of the SCA clutches, ensuring regulatory compliance and maintaining a high level of security.
Conversion rates can, in fact, be significantly improved by applying for 3D exemptions Secure, provided for by the law for those transactions that present, on the basis of real-time analysis, a low risk of fraud.
To accompany e-commerce operators in this process, Axerve has launched “Advice”, an instant analysis tool to guarantee the security of the transaction and prevent any fraud, protecting both users and those who are accepting the payment.
The use promises to increase the level of security, consequently lowering the request for two-factor authentication by credit card schemes.
The positive outcome of the Transaction Risk Analysis di Axerve Advice allows transactions up to a maximum of 500 euros, which are at low risk of fraud, to be processed without authentication.
This, by submitting the transaction with an exemption request e lowering the probability of abandonment by the user.
The product is made in collaboration with Riskified, a global leader in fraud prevention, and is associated with the Axerve Guaranteed Payments service ».
This protects the e-commerce operator in the event that the transaction is contested for unauthorized use of the payment instrument following the exemption.
Alessandro Bocca, CEO of Axerve, he explained: “The pandemic has accelerated and increased the penetration of e-commerce in a context of increasing attention of the end customer to the shopping experience”.
“The data show how the Strong Customer Authentication, by asking the cardholder for additional information to authorize online payments, is creating significant friction and increasing the number of unsuccessful transactions ”.
«It is vital that operators have tools that simplify the process, while ensuring regulatory compliance and the protection of all those involved “.
«Axerve Advice allows a real-time analysis of individual transactions, guaranteeing at the same time an effective user experience and i highest safety standards».
«As a partner for the growth of our customers’ business, it is our duty to put them in a position to equip themselves with all possible solutions to simplify the acceptance of payments, with the aim of reducing cart abandonment rates and increasing the chances of sales ».