The impact of SCA: Shaking up Europe’s online economy

Analyst firm 451 Research interviewed 500 businesses and 1,000 consumers in April 2019 and found that Europe's online economy risks losing €57 billion when Strong Customer Authentication goes into effect.

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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. However, those that are not fully prepared by the deadline risk jeopardizing customer relationships and revenue while losing valuable resources they could be dedicating to their core business.

businesses that expect to be ready on 14 September
businesses that will implement 3DS2 after the deadline
expected loss in economic activity

Key findings

Online businesses in Europe have yet to fully grasp the disruptive impact SCA will have on their customer experience but 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 minimize shopper friction will be best positioned to mitigate SCA’s complexity and convert it into an opportunity for competitive differentiation.

Jordan McKee

451 Research