Making 3D Secure 2.0 and PSD2 happen: Worldline processed the first live transactions with Strong Customer Authentication for European merchants

With the deadline of September 14 fast approaching, the need to have the new security standard for online payments implemented is putting a weighty burden on all players within the payments industry. The new PSD2 regulations mean that from its effective date all card payments must be validated with two security features (two-factor authentication[1], SCA). The rules are set out in the second EU Payment Services Directive PSD2, which aims to improved card-holder protection, as well as vastly increased broadening of service possibilities for every bank’s customers. The rules apply to all online merchants within the European Union and in Switzerland.

An industry first: Worldline customers are PSD2-ready

Worldline is the first PSP and acquirer in Europe to implement 3DS 2.0 within its Acquiring platform and its e-commerce acceptance platform. Speed ​​and expertise were the prerequisites for this successful integration to make Worldline the first provider on the continent to carry out live transactions for its customers, therefore avoiding last-minute workarounds or the threat of fines that are understood to be substantial under PSD2 rules.

Focus on usability and security for E-Commerce

The relatively negative connotation within the industry that SCA seems to have experienced recently does not do the initiative justice: Worldline considers SCA as a great positive opportunity to further enhance the security levels within E-Commerce, enrich the check-out process for online merchants with new features and therefore increase conversion rates.

Worldline’s position as a frontrunner on SCA has been greatly appreciated by a range of its partners; several renowned international 3DS server providers and 11 major European issuing banks have asked Worldline to co-test their functionalities within the live-environment.

With 3DS 2.0, Worldline takes payments one step further

Ultimately, the new security standard for online payments will simplify card payments in e-commerce for both online shops and customers thanks to a wide range of data, biometric authentication and an improved, standardised online experience. As the industry sees a huge increase in mobile commerce, such in-depth improvements are seen as a key element to support the evolving and demanding online shopping attitudes and behaviours of consumers across all market segments.

3-D Secure 2.0 analyses the contextual data of merchants and asks customers to verify their identity when carrying out an online transaction, by providing two security features. At the same time, low-risk transactions are identified in the so-called "frictionless flow" which allows authorisation without additional cardholder interaction.  This smooths the checkout process further for the buyer while merchants benefit from a reduction of payment disruptions thanks to risk-based authentication, significantly lower fraud rates.  This is made possible by intelligent detection mechanisms and result in a decrease in abandoned purchases by delivering the smoothest possible customer journey. 

About Worldline

Worldline [Euronext: WLN] is the European leader in the payment and transactional services industry. With innovation at the core of its DNA, Worldline’s core offerings include pan-European and domestic Commercial Acquiring for physical or online businesses, secured payment transaction processing for banks and financial institutions, as well as transactional services in e-Ticketing and for local and central public agencies. Thanks to a presence in 30+ countries, Worldline is the payment partner of choice for merchants, banks, public transport operators, government agencies and industrial companies, delivering cutting-edge digital services. Worldline’s activities are organized around three axes: Merchant Services, Financial Services including equensWorldline and Mobility & e-Transactional Services. Worldline employs circa 11,000 people worldwide, with 2018 pro forma revenue of 2.2 billion euros. worldline.com

As a European leader in means of payment and transactional services, Worldline has a strong track record of knowledge and insight.  In order to share its understanding of the payments sector, Worldline regularly produces dedicated publications which provide in-depth understanding into what is a fast moving and rapidly evolving market. Below are the links to the latest versions of:

Magazine: https://engage.worldline.com/worldline_magazine_FUTURING_PAYMENTS

White Paper: https://engage.worldline.com/howwillwepay

Worldline Press Contact

Susanne Stöger
+43 1(0) 71701 6524
susanne.stoeger@worldline.com

[1] SCA (Strong Customer Authentication) is based on a 2-factor-authentication for every transaction, with the choice given between elements of ‘knowledge’ (e.g. PIN or Password), ‘possession’ (i.e. a device like phone, token or card) and ‘inherence’ (i.e. a biometric feature such as fingerprint, voice, face recognition or iris scan). With certain exceptions, authentication is mandatory to be performed through a combination of two of these three categories.