Payments Blog

3-D Secure 2.0: What is it and Why is it Important?

Currently, there are a lot of interesting and exciting developments to monitor in the digital payments industry. From the growing popularity of mobile phones and the rise of mobile commerce to the continuous shift away from cash and towards cards and mobile wallets, to the fascination surrounding connected devices, there’s no shortage of intriguing stories and trends in the digital commerce world.

While these noteworthy stories and developments all have their own distinct flavor, their consistent presence in various industry news sources and publications is indicative of a larger trend. Today, consumers want everything to be easier and faster, including their digital transactions. In this new world, everyone in the industry has become fixated on the consumer experience and how crucial it can be for merchants.

But up until now, merchants haven’t been given all the necessary tools to create the best possible consumer experience. That, however, is changing. 3-D Secure (3DS) 2.0, the new set of 3-D Secure protocols, will be a game-changer for merchants who primarily operate in the digital commerce world.

close up of hands using laptop and holding credit card  as Online shopping concept.jpeg

Over the last decade, the rate of innovation in this industry has been remarkable, to the point that the entire industry has outgrown the original 3DS 1.0 protocols. While some technology providers have discovered different ways to work efficiently with these protocols, it’s become a difficult and unenvious task.

Today, more consumers are transacting via mobile devices than ever before, which has cemented the mobile channel as a serious player in the industry while, at the same time, making it even more important for merchants to optimize the mobile experience. By implementing a single message flow, rather than the two-step browser re-direction process that has created consumer friction in the past, 3DS 2.0 can expedite mobile transactions. In fact, this change reduces authentication time, from over ten seconds to less than one, making life easier for the merchant and the consumer.

The introduction of 3DS 2.0 will also mark the end of static passwords and knowledge-based questions, two constant sources of friction. One-time passcodes and, in some cases, biometrics, will be used in place of these outdated authentication methods, which will minimize friction and potential fraud.


Additionally, by giving the merchant and issuer access to more, and better data, 3DS 2.0 will be able to assist with better decision-making, regarding authentication. In this data-sharing world, it will be increasingly vital to invest in an authentication tool that can verify the identity of the consumer while, at the same time, creating the best possible experience for them.

Cardinal’s patented rules-based authentication solution, Cardinal Consumer Authentication (CCA), can do all of that, by balancing the risk assessment of the transaction with the consumer experience, while also giving merchants the flexibility to adjust their rules over time. With One Connection to Cardinal, we can Drive your Digital Commerce.

If you would like to learn more about 3-D Secure 2.0, we have the resources you need! See what you can expect from 3-D Secure 2.0 with our free whitepaper. Follow the button below to learn more about 3-D Secure 2.0!

3-D Secure 2.0: What Does it Mean?

Posted by CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: 3DS 2.0, 3-D Secure 2.0

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