Uber will use Adyen's technology to incorporate the latest version of EMVCo’s
Initially unpopular with merchants, 3-D Secure has been modified to include data-sharing and biometrics to help filter out fraud, and Adyen will offer it alongside the original version of 3-D Secure. Amsterdam-based Adyen will be Uber’s initial solutions provider for the technology, according to a Tuesday press release.
Adyen has developed its 3-D Secure 2.0 technology with an improved process that’s optimized for mobile users and enables some stepped-up authentication to occur in the background.
European regulators implementing PSD2 have directed that beginning on Sept. 14, 2019, strong customer authentication will be required for each online or card-present payment.
Merchants around the world are watching to see how European merchants and consumers respond to stepped-up methods for authenticating transactions to deter fraud. 3-D Secure 2.0 is expected to be available in the U.S. next year.
“U.S. merchants have told us they’re reluctant to adopt 3-D Secure 2.0 because of all the problems they had with earlier versions,” said Tim Sloane, vice president of payments innovation at Mercator Advisory Group.
In previous 3-D Secure implementations, consumers in the middle of online purchases were asked to enter a bank-supplied password to confirm transactions, which introduced some friction at the checkout, according to Sloane.
“The implementation in Europe will be an important lesson for U.S. merchants and it may increase the urgency for banks to create a common authentication method across all bank channels and then educate consumers on what to expect,” Sloane said.
