Signified signals shopper frustrations with strong customer authentication rule — Retail Technology Innovation Hub

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Despite this, 73% of UK respondents agreed – either “strongly” or “somewhat” – that it was worth taking the additional new steps required at checkout to ensure their transactions were protected.

The story was similar in France and Italy, where 79% and 78% respectively supported the new protections, but also said they would abandon retailers that provided a poor experience.

In France, 79% of respondents said they would change address if they had a bad experience. While in Italy the number was 78%.

Consumers in all three countries also made it clear that they remember bad experiences when it’s time to shop again.

When asked if they had ever given up shopping at a particular retailer due to a frustrating experience, 33% of UK shoppers, 46% of French shoppers and 56% of Italian shoppers said yes. .

“It’s clear that consumers in the UK and across Europe want their accounts to be protected against fraud when shopping online,” said Ed Whitehead, Signifyd Managing Director, EMEA.

“It’s even clearer that they won’t put up with frustrating payment experiences. This sends a clear message to merchants and the banks that serve them: they need to adopt solutions and technologies that ensure transaction security while avoiding unnecessary additional friction in the purchase journey. »

Under new SCA guidelines, online shoppers must authenticate in two out of three ways – using biometrics or something unique to the shopper that only they know, such as a PIN or password. password or with the specific device used to make the purchase.

The challenge is how to implement the new anti-fraud routine with minimal friction. Any friction that slows checkout time is also likely to lead to higher abandonment rates, hurting retailers’ bottom line.

So far, most of the conversation around SCA has centered around its detrimental effect on e-commerce sales caused by cart abandonment. J

The data showed lower conversion rates in countries subject to the new rules, although conversions – and the degree of friction online consumers face – vary widely from country to country.

At the heart of the difference is 3D Secure, the backbone of the authorization process. A significant number of merchant-serving banks still rely on the original, outdated version of 3D Secure, which lacks the flexibility to take advantage of the exemptions in the SCA regulation.

For example, in Italy, transaction data from Signifyd shows that nearly a quarter of orders submitted to SCA are declined in part due to outdated technology. In addition, 42% of approved orders encounter significant friction caused by banks that rely on the original version of 3D Secure.

In the UK, only 15% of SCA orders are refused and only 16% of approved orders are processed by the old technology. And France does even better with 12% of orders refused and only 2.5% of approved orders using outdated 3D Secure technology.

Despite the disparity in adoption of new versions of 3D Secure by country, the experience reported by buyers is universally disheartening for brands and merchants in the region.

While 36% of UK consumers said the new rules had stopped them buying something online, 45% of French consumers became frustrated enough to give up on a purchase and 50% of Italian consumers surveyed abandoned their shopping cart. ‘online purchase.

And 37% of British consumers, 55% of Italian consumers and 58% of French consumers would no longer buy from a retailer after one or two bad experiences.

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