COMPLIANCE & REGULATION: AUTHENTICATION
SAFE JOURNEYS
With online fraud a major industry concern, there has been a raft of developments, from both the private sector and regulators, which bring together the various elements of security and authentication. Here, Mastercard’s Mike Cowen discusses the roll-out of SCA, 3DS2, and what Click To Pay adds to the picture Online card security is a hot topic. The revised Payment Services Directive (PSD2) has ushered in the enforcement of Strong Customer Authentication (SCA), which means that payment services providers are battling with the complexities of security protocol 3D Secure (3DS) and its younger sibling, 3D Secure 2 (3DS2), which have been introduced to reduce friction for users. SCA has now been joined by Click To Pay, an industry standard for online payments which, like 3DS2, is managed by EMVCo (a card consortium consisting of Europay, Mastercard, Visa, JCB,
American Express, China UnionPay and Discover). Click To Pay allows customers to pay with a single click, using stored payment information for all of their credit and debit cards. The service supports, and is supported by, Visa, Mastercard, American Express and Discover. These major developments are in response to the global uplift in e-commerce, a trend further driven by the pandemic, and the accompanying rise in online fraud. “Those who are less tech-savvy are more vulnerable to certain forms of fraud,” says Mike Cowen, Mastercard’s head of digital solutions for the UK & Ireland.
“Over the course of the last year, we’ve seen massively- accelerated growth in the shift of payments to online, but also a demographic shift, so that more people who haven’t shopped online previously are starting to, and those people are less comfortable and familiar with shopping online, and potentially more at risk.” UK Finance has highlighted that unauthorised financial fraud losses across payment cards, remote banking and cheques, totalled £784million in 2020, while research by TransUnion picked up on a 14-per-cent spike in online fraud during the last holiday season. It is feared online fraud will continue to boom throughout 2021. Getting their skates on: Card schemes are working fast on easy, secure checkout… everywhere
54
TheFintechMagazine | Issue 20
www.fintechf.com
