So far, we’ve discussed the positive changes that EMV® 3-D Secure will bring to the digital payments industry, along with a couple quick things you should know about this new protocol to help you navigate our constantly changing digital world. But now it’s time to look into the future.
Once we’ve achieved widespread adoption, this change is expected to have a positive impact on the digital payments community.
Because of the enhanced data-sharing aspect of EMV 3DS, consumers should enjoy quicker, more efficient – and more secure – checkout processes during their online transactions. By giving issuers access to more and better data, EMV 3DS is enabling them to make faster authentication decisions, which will be important going into the future. Because we are becoming increasingly reliant on technology and the ability to buy what we want and need in a split second, an expedited digital checkout process is becoming more and more important.
On top of our current technological dependency, many in the industry are forecasting a future that primarily includes vehicle-based commerce and voice-initiated transactions, through Internet-of-Things-enabled devices. These transaction types will require more precision and speed in the authentication stage, since the issuer won’t be able to use a browser to prompt the consumer for additional information. Luckily, EMV 3DS has been crafted with this exact future in mind and is preparing for it right now.
On the surface, consumers are the real winners from this change, as they will also benefit from the switch to one-time passcodes and biometrics as more convenient step-up authentication methods. But merchants and issuers should win here as well, since the inclusion of a more effective step-up authentication process will reduce the incidence of false declines, a serious problem that has been more damaging than fraud over the last couple years. Additionally, the influx of more, better data will also help issuers rid themselves of false declines.
So, there you have it. In the long-run, the shift to EMV 3DS yields no losers in our world – except maybe the fraudsters. Consumers, merchants and issuers will all be better off with this new protocol in place. We hope that all of you are also in a better place after taking this journey with us over the last several weeks. Thanks for sticking with us!
EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.