The Fourth Annual CardinalCommerce Survey
Sponsored by CardinalCommerce and The Fraud Practice
March 15, 2017 – Cleveland, OH – Worldwide use by merchants of Consumer Authentication programs continues to rise, according to the fourth annual Consumer Authentication Survey, sponsored by CardinalCommerce and The Fraud Practice. The survey found nearly 25 percent year-over-year growth in the share of North American merchants who use these programs, from 29 percent in 2016 to 36 percent today. Still, merchants who only do business in North America remain significantly behind worldwide usage of consumer authentication, which now stands at 41 percent, according to the survey.
The Consumer Authentication Survey is designed to provide insights into market use and sentiments regarding consumer authentication programs such as Verified by Visa and Mastercard SecureCode. The 2017 survey was conducted between October and November 2016 and included hundreds of participants worldwide. As with previous years, the survey included merchants, fraud and eCommerce vendors, payment providers, card issuers, and card associations.
For the first time, the 2017 survey included questions about the recently approved update to EMVCo’s 3-D Secure protocol – 3DS 2.0. Of merchants not using consumer authentication programs today, about 40 percent said they are more likely to implement such programs in the future after learning about 3DS 2.0. Half of all merchants identified the “intuitive consumer experience” and “merchant integration” as the most important new features of 3DS 2.0, while support for in-app, mobile, and non-browser purchases was identified as the second most important feature.
This year marked an important change in the primary reason given by merchants as to why they are not using consumer authentication. In the prior three years, merchants said the main reason was their concern that such protocols might negatively impact sales conversion. In the 2017 survey, merchants not using consumer authentication said it was primarily because online volume or fraud attempts were too low to warrant its use. Concerns around sales conversion fell to the third most cited reason. The second most cited reason in the 2017 survey was concerns about the impact consumer authentication might have on the user experience.
Meanwhile, the number of merchants reporting a negative impact on user experience from consumer authentication fell from 38 percent in 2014 – the first year of the survey – to 25 percent in 2017.
A copy of the survey can be obtained by going to this link on the CardinalCommerce website.
CardinalCommerce is the pioneer and global leader in enabling authenticated payment transactions in the card-not-present payments industry, managing the largest authentication network in the world. Through One Connection to the proprietary Cardinal SafeCloud, the company enables friction-free, technology-neutral authentication and alternative payment services (including digital wallets and mobile commerce services). Cardinal services, partners with and complements most providers in the marketplace to deliver their One Connection solution to secure transactions. In accommodating this growing number of payment brands and methods, Cardinal's platforms serve as universal switches, supporting virtually all merchant platforms, wallets, legacy processing systems and authentication methodologies.
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