iAxept, a UK-based fintech company has launched a Strong Customer Authentication (SCA) compliant payment method using contactless card payments for Internet shopping. This solution brings multiple benefits for everyone in the card payment value chain. The London-based firm has worldwide patent filings for its pioneering technology.The SCA contactless payment allows shoppers to no longer need to type any card information, usernames, passwords or register to anything. The contactless card only needs to be tapped on the back of the shopper’s own smartphone and that’s that. If the purchase is above the contactless limit, the cardholder enters their usual PIN code on their smartphone.
The EU’s Payment Service Directive 2 (PSD2) requirement for the SCA demands two-factor authentication, which is delivered by the iAxept Online Contactless solution: contactless card and its PIN code for the authentication.
The new technology allows merchants and their payment service providers to no longer be liable for Card-Not-Present fraud-related financial losses and chargeback costs as the transaction is classed as Card-Present. The card schemes and issuer banks benefit from higher transaction volume and lower fraud rate.
Kantar TNS, a leading consumer research company, found that 94% of online shoppers have abandoned their shopping cart due to complex checkout process, 55% of shoppers do not want to either key in their card details or store them online and 33% would buy more online if there were a secure and easy checkout process.
iAxept’s online contactless shopping experience is expected to increase the conversion rate, generating more transactions and revenue. Kantar TNS also found that more than 83% of consumers interviewed said iAxept Online Contactless was both the fastest and easiest solution to use. 59% of consumers said they would shop more online with iAxept Online Contactless.
Doug Gray, Chief Commercial Officer at iAxept, commented: “We have received massive interest from merchants, acquirers and PSPs from all over the world. iAxept Online Contactless solution is a perfect solution for the SCA requirement and the EU payment industry needs to act now in order to fulfil the SCA deadline by end of the year without completely disenfranchising their merchant clients with an inferior customer experience and lost sales.”
