Everyone in the digital payments industry is, justifiably, excited about EMV 3®-D Secure (EMV 3DS) because of its potential to elevate various aspects of the digital commerce experience, notably the speed with which transactions occur and the entire consumer experience. These two things are often lumped together and recently, consumers have developed heightened expectations, in terms of transaction speed, which has created some frustration, for consumers, merchants and issuers.
EMV 3DS contains vital improvements that make it far superior to its predecessor, especially in terms of the consumer experience. When considering how much weight is placed on the consumer experience in today’s world, this is important.
If a consumer encounters a slow, friction-filled checkout process during a transaction, they will likely leave that merchant and find another one who can offer them a better, quicker experience. Similarly, if they are trying to load their card into a native application and they are declined, they may use a card from another bank, effectively eliminating the revenue that the initial bank would bring in on all the transactions that are originated from that native application.
Especially in today’s digital world, where consumers are increasingly impatient and there’s not much brand loyalty or differentiation between merchants’ product offerings, a positive consumer experience is essential.
EMV 3DS is placing even more emphasis on the use of data during authentication, meaning the issuer will have even more tools at their disposal during risk-decisioning. Because of this, 95 percent of transactions will be silently authenticated, behind-the-scenes, without taking the consumer out of the transaction flow.
This focus on data has also allowed Cardinal to vastly improve the speed with which authentication occurs during the transaction. Previously, this process took more than eight seconds, but now it can occur in less than one, which can mean more authenticated transactions, with no impact to the consumer.
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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.