With the deadline of September 14 fast approaching, the need to have the new security standard for online payments implemented is putting a weighty burden on all players within the payments industry. The new PSD2 regulations mean that from its effective date all card payments must be validated with two security features (two-factor authentication1, SCA). The rules are set out in the second EU Payment Services Directive PSD2, which aims to improved card-holder protection, as well as vastly increased broadening of service possibilities for every bank’s customers. The rules apply to all online merchants within the European Union and in Switzerland.
An industry first: Worldline customers are PSD2-ready
Worldline is the first PSP and acquirer in Europe to implement 3DS 2.0 within its Acquiring platform and its e-commerce acceptance platform. Speed and expertise were the prerequisites for this successful integration to make Worldline the first provider on the continent to carry out live transactions for its customers, therefore avoiding last-minute workarounds or the threat of fines that are understood to be substantial under PSD2 rules.
Focus on usability and security for E-Commerce
The relatively negative connotation within the industry that SCA seems to have experienced recently does not do the initiative justice: Worldline considers SCA as a great positive opportunity to further enhance the security levels within E-Commerce, enrich the check-out process for online merchants with new features and therefore increase conversion rates.
Worldline’s position as a frontrunner on SCA has been greatly appreciated by a range of its partners; several renowned international 3DS server providers and 11 major European issuing banks have asked Worldline to co-test their functionalities within the live-environment.
Vincent Roland, Managing Director Merchant Services at Worldline, said:
“I am excited that the first customers of Worldline are already using our 3D-Secure 2.0 service and have performed their initial live transactions with Mastercard. We are the first payment provider in Europe to offer the latest levels of secure payments. Worldline is indeed ahead and this anticipation allows us to guarantee our customers optimal online transactions when 3D-Secure 2.0 is going to be mandatory by September this year.”
With 3DS 2.0, Worldline takes payments one step further
Ultimately, the new security standard for online payments will simplify card payments in e-commerce for both online shops and customers thanks to a wide range of data, biometric authentication and an improved, standardised online experience. As the industry sees a huge increase in mobile commerce, such in-depth improvements are seen as a key element to support the evolving and demanding online shopping attitudes and behaviours of consumers across all market segments.
3-D Secure 2.0 analyses the contextual data of merchants and asks customers to verify their identity when carrying out an online transaction, by providing two security features. At the same time, low-risk transactions are identified in the so-called "frictionless flow" which allows authorisation without additional cardholder interaction. This smooths the checkout process further for the buyer while merchants benefit from a reduction of payment disruptions thanks to risk-based authentication, significantly lower fraud rates. This is made possible by intelligent detection mechanisms and result in a decrease in abandoned purchases by delivering the smoothest possible customer journey.
1 SCA (Strong Customer Authentication) is based on a 2-factor-authentication for every transaction, with the choice given between elements of ‘knowledge’ (e.g. PIN or Password), ‘possession’ (i.e. a device like phone, token or card) and ‘inherence’ (i.e. a biometric feature such as fingerprint, voice, face recognition or iris scan). With certain exceptions, authentication is mandatory to be performed through a combination of two of these three categories.