UK FinTech company iAxept today launched the World’s first Strong Customer Authentication (SCA) compliant payment method using contactless payments cards for Internet shopping. iAxept Online Contactless is as quick, easy and secure as using a contactless card at a point of sale. One Tap.
This revolutionary solution brings multiple benefits for everyone in the card payment value chain.
Shoppers no longer need to type any card information, usernames, passwords or register to anything. Just one tap of their contactless card on the back of their own smartphone is needed to make the payment. If the purchase is above the contactless limit, the cardholder enters their usual PIN code on their smartphone.
Acquirers are struggling to cope with the EU’s Payment Service Directive 2 (PSD2) requirement for the SCA, which demands two-factor authentication. iAxept Online Contactless is the perfect solution for SCA using the combination of a contactless card and its PIN code for the authentication.
Merchants and their payment service providers will no longer be liable for Card-Not-Present fraud related financial losses and chargeback costs as the transaction is classed as Card-Present. The simplicity and familiarity with iAxept Online Contactless increases the conversion rate, generating more transactions and revenue. The merchants don’t necessarily need to do anything, their payment service provider adds the ‘Pay Online Contactless’ button on their payment page to enable the online merchant to receive Card-Present contactless card payments.
The card schemes and issuer banks benefit from higher transaction volume and lower fraud rate.
According to a recent consumer survey conducted by Kantar TNS, the world’s second largest consumer research company, 94% of online shoppers have abandoned their shopping cart due to complex checkout process, 55% of shoppers do not want to either key in their card details or store them online and 33% would buy more online if there were a secure and easy checkout process. Interestingly, more than 83% of consumers interviewed found iAxept Online Contactless to be both the fastest and easiest solution to use and a whopping 59% of consumers said they would shop more online with iAxept Online Contactless because of its ease and security.
“We have received massive interest from merchants, acquirers and PSPs from all over the world,” said Doug Gray, Chief Commercial Officer at iAxept, “iAxept Online Contactless solution is a perfect solution for the SCA requirement and the EU payment industry needs to act now in order to fulfil the SCA deadline by end of the year without completely disenfranchising their merchant clients with an inferior customer experience and lost sales.”
iAxept UK Ltd is registered in England and Wales and based in Canary Wharf, London. iAxept has worldwide patent filings for its pioneering technology.