TEL AVIV, Israel--(BUSINESS WIRE)--Leading eCommerce solution provider, Riskified, announced today a new European-wide study revealing a staggering disparity between retailers’ and online shoppers’ awareness of the Payment Services Directive 2 (PSD2).
The survey of 2,000 consumers and 200 retailers, with respondents evenly split across the UK, Germany, France, and Spain, found that nine out of ten retailers (88%) believe consumers are ‘somewhat’ or ‘very aware’ of PSD2. However, more than three-quarters (76%) of consumers report that they haven’t even heard of it.
The implementation of the regulation is set to add new security measures for all online transactions over €30. This means that for most online transactions, consumers will need to undergo multi-factor authentication to verify their identity, such as entering a code received via their mobile phone, providing biometric data such as a fingerprint, or other forms of authentication.
Commenting on the findings, Eido Gal, Co-Founder and CEO, Riskified, said: “Fraud is a major concern in eCommerce. We’re always in favour of better security, but it shouldn’t have to be a tradeoff with the customer experience. Unfortunately, some of PSD2’s security requirements could have a detrimental effect on online shopping, leading to unhappy customers and cart abandonment.
"As these results show, anything that interferes with the online checkout process puts merchants at risk of losing customers and revenue. As PSD2 comes into effect, merchants should do everything they can to continue to provide excellent customer experience, while keeping transactions secured and fraud levels as low as possible.”
Riskified offers PSD2 Optimization, a product that leverages machine learning to enable merchants to maximise revenue and maintain a positive customer experience under the PSD2 directive. By maximising the use of Transaction Risk Analysis (TRA), merchants are able to avoid cart abandonment caused by Strong Customer Authentication (SCA), which adds friction at checkout. The result is more approved transactions and a faster checkout process.
The surveys were conducted via Sapio Research on Riskified’s behalf, with questions and response options posed to a pool of 2,000 European consumers who shop online and 200 retail professionals who are aware of PSD2 and hold one of the following positions: Head of or VP of Payments, Finance, Fraud, E-commerce, Operations, CFO, or COO. The survey went to participants across Europe in the UK, France, Germany, and Spain, with respondents split equally between the countries.
The same question and answer options were used in France, Germany and Spain. The questions were updated for the UK to reflect the delay in implementing PSD2 in that country. All questions were translated into the dominant language for each country. Response options were displayed in random order. The full database of survey results is available upon request.
Riskified turns “shoppers” into “customers” by improving conversion at all stages of the eCommerce path to purchase. The world’s largest brands - from airlines to luxury fashion houses to gift card marketplaces - trust us to increase revenue, manage risk and enhance their customer experience. Merchants lose billions of dollars to legacy fraud solutions, payment failures, high-friction verification methods and more. Riskified uses powerful machine-learning algorithms to recognize legitimate customers and help them complete their purchase. Using Riskified, merchants can safely approve more orders, expand internationally and fulfill omnichannel flows while providing a frictionless customer experience. www.riskified.com