The technical implementation of Delegated Authentication and Payment-Authentication with PSD2 is a little daunting, but once you have the right service provider, this process will be a breeze. And because it does not require a third-party provider, merchants will have a seamless checkout experience with minimal risk.
Fortune Business Insights forecasted that the global digital payment market would increase by nearly 25%, or close to $20 trillion by 2026. This forecast is primarily due to the growth of ecommerce and the increase in online transactions, particularly among Gen Z consumers. Cashless transactions are more convenient than traditional payment methods and can be done directly. These advantages are used by businesses to provide seamless checkout experiences for their customers.
Fraud and other forms of friction are a big pain point at checkout. Besides losing sales, trusted authentication requires buy-in from issuing banks. If the fraud rate gets too high, issuers may stop offering delegated authentication services. Therefore, merchants should ensure their trusted authentication programs keep fraud under control. Otherwise, they risk losing customers. But the benefits are great.
PSD2 also requires financial institutions to be transparent with consumers and respond quickly to complaints. As cyber threats continue to rise, enterprises must use a multi-factor authentication system to protect customer data. The new regulations also prohibit companies from charging extra fees for credit card purchases. And payment processors must use SCA to protect their customers. In addition to these benefits, PSD2 requires businesses to implement an open API for account information service providers to access customer data.
Additionally, PSD2 implementation’s primary objective is to prevent fraud online. The directive introduces SCA to all payments to protect users’ confidential financial data. This makes it easier for people to bank online and buy online, increasing confidence in the digital economy.
Companies need to set up an onboarding and payment authentication infrastructure that follows regulations and is reliable. Developers will now be able to obtain FIDO2 certification and offer customers an easy way to remove passwords and logins across smartphones, tablets, tablets, and PCs. FIDO2 strong customer authentication tools like LoginID help e-payment businesses protect customers’ data and increase their credibility.
Furthermore, LoginID can be easily understood and integrated. Users and businesses can incorporate FIDO2 key in multiple channels, browsers, or other operating systems. It also offers cross-device attestation and mechanisms to recover lost accounts.