How do you feel if a pop-up window opens when you pay for an online purchase, or if the view switches completely to another service? Many people feel already frustrated at this point – is the service safe, why are there so many steps, should I cancel the purchase? A smooth and fast customer experience is today’s default requirement.
Underlying security reasons
In 2019, the Payment Services Directive Two (PSD2) entered into force throughout the EU. In practice, this means that strong customer identification is required when making an in-app payment. This will prevent fraud and safeguard the rights of both the consumer and the trader. Strong identification is possible through various methods.
Commonly used 3D Secure
3D Secure is a protocol jointly developed by Visa and Mastercard to protect consumers from online payment fraud. It aims to ensure that the payer of the online payment is the holder of the payment instrument. In addition to card information, the online payer must have, for example, a password.
The original 3DS protocol was released almost twenty years ago, and it was designed for web use only. Since then, the protocol has also been developed to be mobile-friendly. Its complete transformation to mobile-friendly has been challenging – the user may still be redirected to a separate page for authentication. A multi-stage system can cause a feeling of insecurity and irritation in the consumer.
Merchants have raised concerns: there are fears that the transaction will become more difficult as payment requires more steps than before.
Delegated authentication and in-app payment
Delegated authentication is a service that allows a consumer to identify themselves using biometric identifiers stored on their mobile phone. These include phone fingerprint recognition and face recognition.
In-app payment is a solution where the payment application and authentication are integrated into an online payment service. The consumer sees the service as a single entity. Authentication is smooth or even automatic, making it seem like a logical security measure.
Seita Technologies is a pioneer of modern payment solutions in Finland.The mobile payment solution we have developed offers a secure and hassle-free, in-app payment execution.
Come and learn more about the current state and future of mobile payments. Our expert Juha Ahlroos will dive deep into the challenges, technologies, and solutions of mobile payments.
Juha Ahlroos is Sales Director at Seita Technologies. He has worked in the Fintech industry for more than 15 years in sales positions, focusing on various payment solutions and customer relationship management and development.
