By Tom Phillips[1] • • Updated • nfcw.com[2]
Only one in six (12.8%) UK merchants rates the introduction of strong customer authentication (SCA) for online payments as a big business concern as the economy recovers from the Covid-19 pandemic, according to a survey published by Signifyd.
The company’s State of UK Commerce Report 2021[3] also shows that while 28% of respondents said they “anticipated a decline in conversion rates because of SCA”, more than 37% thought there would be “no change”, nearly 31% “expect to see greater conversation rates” and almost 4% “expect to see significantly higher conversion rates”.
“That’s a marked contrast to consumers’ take on the regulation, which will be enforced in the UK starting in September,” Signifyd says.
“More than 46% of consumers said in a companion poll [published in December 2020] that they were somewhat or very likely to give up on an order that involved the kind of two-factor authentication required by SCA.
“Ranking above SCA on UK retailers’ worry list were the lingering effects of Covid-19, the fallout from Brexit and the financial health of their businesses, according to the survey of 250 decision-makers at retail enterprises across the region.”
“Surprisingly, UK merchants seem almost sanguine about the impending enforcement of PSD2’s strong customer authentication requirement — despite the widespread discussion of it being a conversion killer,” the report adds.
“Although CMSPI determined that SCA would lead to a 25% reduction in conversions in most European countries[4] subject to the requirement, UK brands and retailers don’t appear to be buying it.”
The requirement
