What to do as an ecommerce retailer
Akin to GDPR, the new law is likely to cause some trouble for online vendors. Primarily, sellers will have to collaborate with banks to ensure they all have the same definition of two-factor authentication. With 6,000 banks in Europe, there may be delays as banks scrabble to agree on these definitions. Likewise, consumers will need to be educated on what counts as two-factor authentication, for example voice or facial recognition, fingerprints or pin number. The new law comes into effect on September 14.
To prepare for the changes, online retailers should:
Educate their teams
Research shows that only 25% of online merchants are aware of the SCA. You can find out more about how your business will be affected by reading the guidelines from Ecommerce Europe.
Research Alternative Payment Methods
Some fintech companies have been preparing for SCA for a while. For example, payment technology provider Stripe recently acquired Touchtech Payments, which offers SCA technology. Similarly, the company has also launched Stripe Billing, designed to make SCA compliance easier for online subscriptions. The software will identify when customers need to authenticate themselves, making transactions more convenient, thereby increasing conversions for retailers.
Inform their customers
To make the transition easier and avoid any surprises, you should forewarn your customers of the new changes. Consider a personalised email to your customer database, or a notification on your homepage, similar to a cookies bar.
Online sales are forecasted to grow by 17% across Europe in the next few years. While SCA may take some getting used to, it will ultimately benefit both retailers and their customers.
For more information on SCA, speak to Hydra Creative today.