Consumers face an increasingly complex authentication landscape that protects their assets differently depending on the channel they use. But multiple authentication techniques create unwanted friction… and unwanted friction leads to all sorts of problems.
Now, international card networks are mandating issuers worldwide to deploy Secure Remote Commerce (SRC) and EMV 3-D Secure, the latter playing an essential role in meeting the European Union’s strong customer authentication (SCA) requirement under the revised Payment Services Directive (PSD2).
But there is controversy regarding how these standards will support the EFT debit networks.
Time for a new authentication strategy?
In this white paper, research and advisory firm Mercator argues that with so much complexity to contend with, issuers competing for top of wallet need to start carefully considering the impact of their customer authentication methods.
- The lack of an integrated solution results in an inconsistent user interface.
- Inconsistency not only detracts from a customer’s experience but is likely to disrupt any cross-channel implementation plans an organization might have.
- A customer who is presented with the same authentication technique for every interaction becomes more familiar with that technique.
- The authentication technique should be implemented on a smartphone, which 89% of U.S. adults over the age of 18 already have.
- Consumers are increasingly trusting smartphone-based biometrics and becoming accustomed to using their own smart speakers for a range of use cases.