Microsoft has revealed that Strong Customer Authentication is negatively impacting ecommerce sales.
In Brief:
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SCA is causing customers to abandon their basket at the checkout when challenged online.
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As part of PSD2 all payment service providers in the EEA must implement SCA by the end of this year.
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It involves multifactor authentication with at least two separate pieces of knowledge.
What does this mean?
Microsoft is currently testing SCA. In a LinkedIn post a Microsoft director revealed that issuers have not yet enabled SCA in all markets for all platforms, merchants are losing sales and the process even when successful is inefficient and adds friction to the user experience.
It will be important for payment providers to find a way of making SCA seamless for the consumer so that merchants do not lose sales.
