BioCatch, a global leader in behavioural biometrics, and Goode Intelligence have released a report highlighting the challenges and potential improvements of strong customer authentication (SCA) implementation across the EU.
According to the European Banking Authority (EBA), fraud rates have fallen for issuers because of high SCA compliance adoption, with the average value of fraudulent card transactions falling by 50% from June 2020 to April 2021. However, the decreasing fraud rates have come at a cost,, with EuroCommerce, Microsoft and CMSPI all citing an increase in customer abandonment rates. Indeed, CMSPI reported a 30% rise in abandonments, estimated to have cost merchants £74 billion in lost sales.
Beyond Compliance: Comply and Thrive in a PSD2 World from Goode Intelligence shows that to reverse the trend of declining customer experience, banks and payment services providers are turning to behavioural biometrics. Analysing behaviour has become integral to fighting fraud, remaining SCA compliant and mitigating implementation problems that lead to cart abandonment.
