Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Banking and fintech:
Helps issuers and payment providers comply with Strong Customer Authentication (SCA) requirements.
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Fraud prevention: Helps reduce chargebacks related to fraud.
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- Implementation complexity: Requires integration with card schemes and issuer systems.
