As the holidays approach, merchants and financial institutions alike are working feverishly to complete preparations before the busy shopping season begins. However, this year’s preparations are complicated by two key factors:
- Increased complexity in the European region associated with the revision of the Payments Services Directive (PSD2)–for example, transactions over EUR 30 use multi-factor authentication such
- Projections of 13 billion (USD) in eCommerce sales worldwide–more sales traffic means a broader target for fraudsters
Financial institutions and payment processors must implement new security measures for CNP transactions in order to remain in compliance with new regulations. While the revisions to PSD2 aim to protect consumers and banks, the new authentication requirements add friction to the customer experience leading to increased cart abandonment.
Cart abandonment is a trillion-dollar concern for retailers and in the age of instant gratification, customer experience is king.
Organizations must stand apart by offering a frictionless purchase process while remaining compliant with stringent regulations. Fortunately, fighting fraud and reducing friction are no longer antonyms of one another and there are steps that businesses can take to prepare for this challenge today.
For the full steps you can take to stand out this holiday season read the full article here.