Developed more than ten years ago, 3D Secure 1 was welcomed, but not exactly user-friendly, widely adopted and recognised when a pop-up window appeared with ‘Verified by Visa’ (later rebranded as Visa Secure), ‘SecureCode’ from Mastercard of Safekey from Amex. The system was somewhat convoluted, complex and was often plagued by compatibility issues. A protocol designed to be an additional security layer for online credit and debit card transactions, the name refers to the “three domains” which interact using the protocol: the acquirer domain, the issuer domain, and the interoperability domain.
Over time, many merchants or etailers came to see 3DS as a security benefit that gave them peace of mind when shopping online. Which makes the arrival of 3DS 2.0 a welcome upgrade, one that introduces some significant improvements to online payment processing and security.
This shift to 3DS 2.0 is aligned to the increased growth in eCommerce, the need for additional security parameters, and the demand for seamless user experiences. All these factors are essential to the continued growth of eCommerce and the retention of a growing online customer base while ensuring that customer security concerns, and risks, are addressed as intelligently and carefully as possible.
Over the next few months, most card schemes will require payment platforms and retailers to migrate to the new standard. This has made the move mandatory, but ultimately delivers measurable benefits that make the move worthwhile.
Karen Nadasen, CEO of PayU South Africa, explains, “One of the most important benefits is trust – in the transaction, the process and the service provider. This is why the enhanced 3DS 2.0 has put user experience and additional security at the heart of its processes. Authentication processes will primarily be managed behind the scenes as the data used by the platform and retailer moves to authenticate at speed, and at a high level of security. Factors such as biometrics can also be integrated to provide a more robust framework for service providers, cardholders and payment platforms.”
The new solution also uses more data to assess the risk associated with a transaction. Transactions that are considered low risk by the cardholder’s bank can potentially be authenticated without the need for an OTP (One Time Password) or other forms of authentication that banks use. This reduces the friction currently experienced by customers in the checkout process without compromising on security and therefore potentially reducing abandonment.
With 3D Secure 2.0, the customer follows a journey that increases engagement and reduces friction, adding that all-important stickiness to the merchant and customer relationship. Additional information gathered from the customer or received from the merchant will be used by the bank to determine whether or not the transaction requires further authentication. If yes, they will follow the usual authentication process, but using a more seamless approach dependent on the authentication methods offered by their financial institution. If not, the transaction will be completed immediately.
This intelligent application of technology and process to eCommerce transactions can transform eCommerce. It’s also why PayU is currently switching all merchants over to the 3DS 2.0, and ensuring that the new standard is accessible to all customers. Merchants don’t have to undergo any additional changes, although they do have the option to submit additional data related to customers and transactions to further streamline purchasing.
Nadasen, who is also the Chairperson of The Ecommerce Forum of South Africa (EFSA), concludes, “As we say farewell to 3D Secure 1.0, we can be grateful for its immense contribution, but as is always the case with eCommerce, technology is incredibly dynamic and iterates continuously. It has run its course. With the surge towards online shopping since the pandemic started, the timing of 2.0 to further protect consumers, merchants and enhance their online experience couldn’t be better.”
Brandstories Disclaimer:
Brandstories is not liable for the contents of the information published on this platform. The information which subscribers publish on this website is for general information purposes only and Brandstories facilitates the ability for viewers and subscribers to access this platform. Subscribers who publish their content on Brandstories are held responsible for their own content. This includes ensuring that it is factually accurate, grammatically correct, free of spelling errors, and does not contain unsavoury content that could result in legal action. In the case of linguistic translations, the onus is on the client to ensure that the translation is accurate. In no event does Brandstories make representations or warranties of any kind, expressed or implied about the completeness, accuracy, reliability, suitability or availability with respect to the information supplied and published. This website includes links to other websites, including third party websites. Brandstories does not recommend, endorse or support any views that are held by subscribers publishing information, and within these links provided. Furthermore, Brandstories does not have control over the nature, contents and availability of information contained on these sites. Any form of reliance readers and consumers may place on information published on Brandstories is strictly at their own risk. Brandstories makes every effort to ensure that the website is up and running smoothly at all times, however Brandstories does not take responsibility for, and will not be held liable for times when the website is temporarily unavailable due to technical glitches that are beyond our control.
You may also like
-
The quest for certainty in e-commerce delivery
-
When it comes to parcel delivery, few names resonate on a global scale quite like DPD. The company’s reach, credibility, and the esteemed network it belongs to are nothing short of phenomenal. In this article, we delve into the vast expanse of DPD and its associated companies around the world, unveiling a picture of unmatched expertise and commitment. At its core, DPD South Africa is backed by Geopost, the majority shareholder. Geopost, a true multinational juggernaut, operates in 49 countries across all continents. It boasts an extensive network of expert delivery brands, each a leader in its respective domain. These include DPD, Chronopost, SEUR, BRT, Speedy, and Jadlog, collectively serving as a testament to Geopost’s global prominence. With 57,000 dedicated employees, Geopost is on a mission to make commerce more convenient, profitable, and sustainable for its customers and the communities it serves. A remarkable feat is Geopost’s commitment to becoming an international reference in sustainable delivery. It stands as the first global delivery company to have its roadmap to Net Zero by 2040 approved by the Science Based Targets initiative (SBTi). Geopost’s influence spans borders and is setting an industry standard that others can only aspire to reach. Local Partnerships and Powerhouses In the local arena, DPD South Africa enjoys the support of The Laser Group, a minority shareholder. The Laser Group is a proudly South African company, proudly majority black-owned, and holds the distinction of being one of the largest independent logistics businesses in the country. This local collaboration adds a uniquely South African touch to the global excellence that DPD embodies. An International Partner of Unmatched Stature Geopost, with its DPDgroup, reigns supreme as the largest international parcel delivery network in Europe. DPDgroup seamlessly blends innovative technology with local knowledge, creating a flexible and user-friendly service that benefits both shippers and shoppers. Geopost’s revolutionary Predict service, for instance, has set a new industry standard for convenience, ensuring that customers stay closely connected with their deliveries. With a colossal workforce of 122,000 delivery experts and an astonishing network of more than 58,000 Pickup points, DPDgroup achieves an awe-inspiring feat – delivering 8.4 million parcels each day, amounting to a staggering 1.9 billion parcels annually. The Global Success Story Continues The DPD business units function as the parcel delivery network of GeoPost, a holding company with sales soaring to €11 billion in 2021. Geopost is owned by Le Groupe La Poste, underlining the significance and reach of DPD’s corporate family. In sum, DPD isn’t just a parcel delivery company; it’s a global powerhouse that epitomizes excellence in logistics. Its association with Geopost and the extensive network of delivery brands it encompasses speaks volumes about its global standing. DPD isn’t just delivering parcels; it’s delivering on a promise of unparalleled service, worldwide. By the Numbers: DPD’s Global Impact Number of parcels delivered every single day: 7.5 million Annual Revenue: €11 billion Countries DPD can ship to via its network or partners: +230 Delivery Experts: 97,000 Countries in which DPD operates: 50 Number of parcels delivered per year: 1.9 billion https://www.dpd.com/za/en/
-
Driving tech integration to accelerate business growth
-
Survive or thrive: SA’s SMEs are needing fast capital
-
Cricket hits a six with a new SA tech-driven fan experience