Security in Frictionless Payments
As digital commerce accelerates and the Internet of Things (IoT) grows, payment options are growing in tandem. With 8.4 connected devices—a number forecasted to increase to 20.4 billion within two years— it’s not surprising that consumers want to be able to pay anytime and anywhere. It’s critical to ensure these “anytime, anywhere” payments are protected with the utmost security.
An example of such security measures is 3D Secure. The first 3-D Secure (Three Domain Secure) authentication has been around for years as a security layer for card-not-present (CNP) transactions. One of the primary reasons it was created was to increase consumer confidence in online transactions. While it was effective in securing transactions and garnering the confidence of consumers, it also introduced unnecessary friction and false positives into the equation, causing merchants to experience more cart abandonments.
The new 3D Secure 2.0 (3DS2) has made frictionless payments a primary focus. The updated version allows the transmission of more data during transactions, enabling risk-based decisions for authentication. Using token-based and biometric authentication allows this protocol to facilitate secure, frictionless payments by freeing up consumers from the need to remember static passwords.