Despite the looming deadline of September 14th, 2018, many merchants are already implementing innovative digital shopping and payment experiences. Among these, the fast and friction-free checkout experience has already been experienced by millions of shoppers. PSD2 enables merchants to implement a secure payment process to increase customer confidence and trust. This new regulation will allow merchants to comply with the latest security requirements without compromising the ease of purchase.

In order to implement PSD2, merchants must ensure that SCA authenticates all their transactions. The merchant can choose between two authentication methods – relying on the knowledge and behavioral patterns of the consumer or using 3DS. The former allows merchants to offer a frictionless checkout process that does not use 3DS, thereby increasing conversion and improving customer experience. If you are looking for a PSD2-compliant payment solution, we recommend contacting a company that provides this service.

Despite PSD2’s many positive impacts on the online payments industry, merchants should still exercise caution. The latest standards are susceptible to the privacy of online consumers. PSD2 requires PSPs to act quickly and disclose information to consumers who have complaints. It also prohibits companies from charging additional fees for credit card purchases. To increase the protection of consumers, payment processors are also required to implement multi-factor authentication.

With the help of the card networks, merchants can now take control of the user experience while reducing the cost of processing. The new payments infrastructure will allow consumers to use biometrics for online shopping, and passwords will slowly disappear. Delegated Authentication and Payment Authentication work with PSD2 and can benefit merchants and consumers. Its benefits include lowering the risk of cart abandonment, increased control, and improved transaction approval rates.

PSD2 also requires a secure, multi-factor authentication method. Delegated authentication enables a user to identify themselves without using their actual password. A person must be a member of the same identity as the person being authenticated. For this, the merchant should implement strong customer authentication. A good SCA solution should be able to integrate with 3DS2 and PSD2, as well as offer delegated authentication.

If you want to learn more about how delegated authentication and payment authentication work with PSD2, you can read this infographic from LoginID. You can also visit their website for more professional help in terms of the latest security systems.