The impact of SCA

This report by analyst firm 451 Research provides a view into key SCA considerations and presents actionable guidance for merchants to convert SCA from burden to business opportunity.

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87% of businesses believe that SCA will increase the strategic importance of payments

Businesses that have been proactively preparing for SCA can expect a reduction in fraud losses while differentiating their checkout experience from competitors.

European consumers that prefer to be authenticated
companies whose fraud levels have increased year-over-year
shoppers that abandon a purchase but complete it with a competitor

Key findings

Online businesses in Europe are racing against the clock to become compliant.

  • Many European businesses are unprepared for SCA
  • Small businesses will be disproportionately impacted by SCA
  • Integration complexity, implementation cost and customer experience impact are the top 3 concerns
  • SCA amplifies low consumer tolerance for bad checkouts, increasing the risk of cart abandonment
  • SCA reaffirms the increasing strategic importance of payments for online businesses

Technology partners with sophisticated exemption engines, 3D Secure 2 expertise, strong relations with issuing banks and card schemes, and an ability to minimise shopper friction will be best positioned to mitigate SCA’s complexity and convert it into an opportunity for competitive differentiation.

Jordan McKee

451 Research