Have You Checked Out Yet? Why Frictionless Commerce Matters

I was buying my wife a birthday gift just the other day, the conventional way – walking into a store and browsing – you know the kind of thing.

It was all very pleasant, the first thing I was greeted with was a lovely aroma (the diffusers were clearly doing their job) followed shortly after by a friendly welcome from one of the store assistants.

I needed a little help with choice and sizing and again, I received some good advice from a very helpful member of staff. I was being made to feel valued and I liked it.

But the warm feeling which this induced quickly dissipated when the time came to pay.

Suddenly no-one was available at the check-out to take my money and I could feel the irritation quickly building up inside. Eventually someone appeared but the damage had been done.

A familiar tale and one I’m sure we’ve all experienced at one time or another. This was in-store but what if it had been online?

Great site, great products and merchandised in a way which was easy to navigate but when the time came to go to basket it all begins to unravel.

I’m left waiting at the checkout.

But instead of being patient and converting, with a few clicks I am with the competition and purchasing from them.

So, the payment process matters; and according to CA Technologies, A Broadcom Company, it’s all about balancing security with user convenience.

Never before has it been more critical to have a quick, frictionless checkout on every platform, whether it be mobile apps, mobile browsers, tablet or desktop.

But there’s one which is becoming more critical than any other: mobile.

Squaring The Mobile Circle

The need to balance frictionless convenience with the necessary levels of security to prevent fraud becomes far more acute as mobile commerce continues to become the preferred way in which we shop online.

In 2017, according to eMarketer.com it is estimated that ecommerce sales worldwide reached $2.3 trillion, nearly 25% greater than in 2016.

In addition, mobile was largely responsible for this growth reaching $1.4 trillion or 58.9% of all digital sales.

Furthermore, Statista predicts that by 2021, mobile commerce sales will account for nearly 73% of all ecommerce sales, meaning a staggering $3.5 trillion worldwide.

When viewed in this light, the need for a secure but seamless payment process becomes abundantly clear.

Why Does All This Matter?

The term EMV® 3-D Secure (EMV 3DS) may not be familiar to everyone but for a merchant it very soon will be.

CA Technologies, A Broadcom Company – co-inventors of the original 3DS card security technology – processed the world’s first EMV 3DS transactions in September 2018.

So, what is it and why does it matter?

The original 3-D Secure protocol, co-created by CA Technologies and Visa, did its job, however, the proliferation of smartphones and in-app purchases have changed how people interact and shop online.

Now, as we know, customer experience is everything and a clunky checkout process leads to abandoned online carts.

A new solution was needed in order to protect against fraud but provide a more seamless experience for the customer.

EMV 3DS was therefore created in order to significantly improve the checkout experience, especially on mobile devices, eliminating the need to painstakingly enter usernames and passwords just to ensure legitimacy.

The reason for the need to develop this new version can be found not simply in the nature and scale of the fraud problem.

The need for a new version is the combination of the preferred shopping methods of today’s consumers; in other words, how comfortable we have all become with making high-value purchases online, coupled with our desire to have everything “right now”.

As point of sale fraud has largely been curtailed, fraudsters have now switched their attention to card not present (CNP) transactions where the card is not physically in front of the merchant, such as with online transactions.

Then there is the sheer size of the problem. According to Accenture, publicly available estimates of the actual cost of CNP fraud vary considerably, with estimates of the global scale of e-commerce fraud losses ranging from anything between $25 and $40 billion.

With CNP fraud so prevalent; running a business without having it is like leaving your house with the front door wide open.

EMV 3DS is here just in time, ensuring that the front (and back) doors remain firmly shut.

For more information please click here.

Andrew Busby

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