In 2019 a requirement to require multi-factor authentication for e-commerce transactions were introduced in Europe by the revised Payment Services Directive (PSD2). Strong Customer Authentication (SCA) was initiated to increase the security of electronic payments through requiring customers to provide two forms of identification when shopping online:
Before SCA, payments were authorized using only one piece of identification, such as a password. These new layers of SCA authentication help verify user’s identities more confidently and reduces the risk of fraud for you and your customers.
Since SCA was implemented in 2021, merchants need to ensure that their transactions meet this requirement while still providing a frictionless checkout. When coupled with a comprehensive payment strategy, implementing SCA to meet PSD2 requirements can positively impact user experience.