3-D Secure (3DS) 2.0 is going to drastically alter the entire digital payments landscape, meaning merchants, issuers and consumers will enter a new age in this industry. The 3DS 2.0 specs, which were released in October 2016, and updated in October 2017, contain many exciting developments that have drummed up a lot of excitement about the future of this industry.
3DS 2.0 offers many benefits, a lot of which are available today, for both merchants and issuers. These new protocols focus more on enhanced data, providing more data fields for issuers to use to more effectively identify legitimate consumers during authentication. Merchants can benefit by collecting the fields on their end, which will effectively prepare them to pass these fields to the issuer, as issuers adopt 3DS 2.0.
3DS 2.0 is also addressing the reality that consumers use more than just browsers to buy products and services online. In this new world, authentication is possible, in an efficient way, on a multitude of devices, including mobile phones, voice-activated assistants, gaming systems and more. While this new reality creates new sales channels, it can also complicate things for merchants and issuers.
If merchants start collecting device data on their transactions today, they will be equipped with another crucial piece of information that will help during the preparation process. Cardinal can also help these merchants, through transaction routing. Cardinal can route transactions between 3DS 1.0 and 2.0, meaning merchants who are ready for 2.0 will benefit.
When the issuers are ready, they can use this device data to optimize the step-up experience, when it’s necessary. If the issuer has sufficient device data, they will be able to render challenge screens, and format them correctly to fit the correct device, which will lead to a better overall experience for the consumer.
Cardinal Consumer Authentication (CCA) is a data-driven solution that is uniquely positioned to help both merchants and issuers thrive in this new digital world. Connect with Cardinal for more information about 3DS 2.0, CCA and other important topics within the digital payments industry.