Endeavour will be presenting at the 6th Congress America Digital 2021 which is being held 100% online for this year.

Endeavour will be presenting at the 6th Congress America Digital 2021 which is being held 100% online for this year.

This conference is a landmark event for South America which brings together the world’s largest companies and the thought leaders and innovators across South America.

Endeavour will be presenting on Thursday, October 7th at 10:30 am to 11:10 (GMT-3). This will include a Q&A session. We also have a digital booth where you can meet us.

Our Digital Lives rest on a broken Pillar

The Internet dominates our lives to the extent that virtual reality and real lives have become indistinguishable. In a way we have always lived in our minds and the internet is the new way minds connect.

Key to this interaction is off course eCommerce and key to eCommerce is security and credentials – our digital identity.

Yet eCommerce is broken at its most fundamental pillar – Identity. Before the internet the security was provided by the presence of the card which has since been upgraded with Chip & Pin with great success.

What about internet transactions ? Each country is reporting fraud running into billions and reaching as much as 1-2% of GDP. These staggering costs are passed on to the cardholders and merchants. In addition, merchants are losing further business when Issuers reject transactions over fear of fraud. Approval rates for eCommerce lag by 14% behind card present.

SCA Mandate for payments

Europe has now implemented the mandate that all payments must use Strong Consumer Authentication (SCA). In the case of eCommerce, the mandate means that Issuers must reject a payment request if it arrives without 3DSecure.

This is not just a local European initiative but part of a larger worldwide initiative that concerns not just payments but digital security in general.

Survey after survey conducted by governments around the world show that consumers want the additional security not just for themselves but for their children and dependents. This is a somewhat different message from what we hear coming from the payments industry. The mandate settles the matter.

3DS is already widely used across the world, the mandate is meant to stop business models which put cardholders at risk, requiring authentication for transactions which has no reason not to authenticate.

The mandate also aims to make eCommerce more secure, spur growth and innovation and lead to greater digital inclusiveness. The mandate seeks to reproduce the huge success that the Chip & Pin technology has been in stopping fraud.

Finally, the mandate has consumer rights as a priority. The EU already has many consumer rights around internet purchases. Being refunded after a month for a charge-back is not good enough – that might be someone’s rent money.

3DSecure 1.0 is not sufficient

The Mandate brings into scope a lot of new transactions many of which fall into situations where doing an authentication is not possible. How will these merchants continue to operate when the Issuer is obliged to reject their transactions?

Then there are mobile payments. Smart phones as we know them are attributed to the IPhone released in 2007. Version 1 has no support for mobile.

This is why we now have Version 2 which is already in production as both versions 2.1 and 2.2. Endeavour has deployed Version 2 for over two years already.

Version 2 bring authentication into the 21^st century leveraging AI, Machine Learning, Biometrics and Smart Phones. Version 2 brings Risk Based Frictionless Authentication, SCA Exemptions, Merchant Initiated Transactions, Decoupled Authentication, Out of Band Authentication and Native in-APP Authentication for smart phones.

The Impact for Merchants around the World

Merchants around the world are now experiencing dropping approval rates unless they are using 3DSecure.  If they are using Version 1, they now need to take steps to migrate to the new generation of Authentication.

Endeavour is providing the expertise, services and tools for merchants and payment providers to migrate and adopt the new generation authentication. Endeavour  brings unparalleled experience and dedication to 3DSecure Authentication.