Page 3 - CBM10

~ Welcome ~

FOREWORD

Essentially, this is too great of a challenge for any one party to
solve alone. In such a complex ecosystem, no one player can suc-
cessfully implement a solution without the buy in of the entire
value chain. The solution starts and ends with collaboration.

With new European Strong Customer Authentication (SCA)
requirements due to be implemented later this year, the time
is right for the digital commerce ecosystem to rally together.
Retailers and acquirers need to understand new regulatory re-
quirements such as SCA in order to put in compliant systems.
Issuers need to enrol cardholders in SCA compliant authen-
tication methods and inform cardholders on new alternatives
that ease this transition, such as biometrics. Only when the
value chain comes together can the real benefits be unlocked
across the board.

The new SCA regulation provides rules to fight fraud, and
acquirers and issuers are deploying systems to comply. The
COLLABORATION best solutions will combine this with a decrease in cart aban-
donment and false declines that businesses are calling out
– the antidote to for by providing more secure and convenient authentication.
To reach their full potential, these tools need to be embraced
online fraud and utilised by the entire payment value chain. Online
retailers must be compliant and payment processes need to
allow for the new biometric tools, two factor authentication
igital commerce has been a lifeline to many retailers, and increased payment data collected. Consumers also need
showing reliable double-digit growth year on year, to be educated by issuers on what the new processes mean,
Dand a staggering 80 percent of European citizens are when and where they can use biometrics and why two-factor
now using their mobile devices to make purchases . However, authentication benefits them.
this €602 billion market is increasingly becoming a prime
target for criminals and 75 percent of card fraud now takes Once the market unites to implement the new require-
place online. As the market has grown and evolved, it’s ments efficaciously, the new digital payments experience will
become clear that we need to do more to protect ourselves be compliant and more secure than before – benefitting all
and our customers online to secure the continued growth and stakeholders. Now is the time to talk to your partners, find
prosperity of digital commerce. out how they are implementing SCA and begin refining your
processes and communicating any changes to your wider
This isn’t a revolutionary secret. 75 percent of businesses are stakeholders. ••
interested in more advanced security measures and authenti-
cation processes (as long as they have little or no impact on Yours,
their customers, which might lead to cart abandonment) . Milan
Further, Gartner revealed that in Q1 of 2019, 64 per cent of
senior executives indicated that accelerating privacy regula- Milan Gauder, Executive Vice President of Services Europe,
tion was a key risk facing their organizations . Mastercard

If we know online fraud is a problem and recognise the solu-
tion, why are we yet to solve the issue?

3