Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Increase conversion, convenience and security in e-commerce checkouts - Silke Hubert, Netcetera

130 views

Published on

Tokenization and Secure Remote Commerce as key technologies

Published in: Software
  • Be the first to comment

  • Be the first to like this

Increase conversion, convenience and security in e-commerce checkouts - Silke Hubert, Netcetera

  1. 1. Silke Hubert Pre-Sales Consultant Digital Payments Increase conversion, convenience and security in e-commerce checkouts Tokenization and Secure Remote Commerce as key technologies
  2. 2. Trends and challenges in e-commerce Structural shift in-store to e-commerce Increasing level of concentration at large merchants & platforms Regulatory requirements such as PSD2 have strong impact Mobile growth m-commerce & in-app payments Instant and effortless user experience Higher risk/fraud CNP compared to CP Lost transactional revenues abandonments & declines Higher costs for CNP versus CP Low conversion rates especially on mobile channels Inconsistent & inconvenient user experience TRENDS CHALLENGES
  3. 3. 61% of checkouts are card based and therefore face abandonments, declines and fraud Cards 61% Direct transfer 28% Other 11% 29%Cards-on-File 19%Guest Checkout 13% Digital Wallets eCommerce Checkout Types (Europe) Source: Mastercard, Worldpay,BCG Abandonment & decline rate when 3DS (1.0) is used24% Decline rate when 3DS is not used17% Times higher fraud rate of CNP compared to CP4-10 Customers abandon cart due to long /complicated checkout1in4 E-commerce checkouts
  4. 4. Central use case of tokenization: digitize a card Card Issuer Substituting a sensitive data element (PAN) with a non-sensitive equivalent Step-up authentication* T Token Requestor Token Service Provider (Scheme) *e.g. 3DS NPA (Non Payment Authentication) can be used as step up for card digitization
  5. 5. … already demonstrated by many token requestors Token Requestor Token Service Provider (Scheme) Card Issuer OEM Pays/ Wallets Merchants& PSP IoT IssuerPays/ Wallets NEW
  6. 6. Tokenization in e-commerce is using the same principles as for mobile contactless payment PSP Acquirer network T AuthenticationDetokenization PAN Entry CoF Card IssuerToken Requestor Token Service Provider (Scheme)
  7. 7. main use cases of e-com tokenization4 ENROLL Add card manually or tokenize from Card-on-File DISPLAY CARDS Card metadata (e.g. card art) coming from token service TRANSACT Generate EMV cryptogram for transactions LIFECYCLE Issuer account update, update of PAN / token status
  8. 8. Benefits of scheme tokenization Helps to increase security, approval rates and conversion PAN replacement Reduces risk & PCI scope of Token versus PAN Token/cryptogramassigned to merchant Results in better risk scores at issuers and drives increased approval rates On-top «features» PSD2 SCA compliant: basis for Delegated Authentication & Push Provisioning EMV cryptogram Protects against fraud from relay and replay Lifecycle management Keeps credentials up to date, avoids abandonments & provides a more seamless user experience Card art Builds familiarity & can drive conversion +
  9. 9. First results ~ 6% increase in approval rates communicated by two schemes Approval rate tokens vs. PAN at benchmarked samples Approval rates vary by country, merchant and issuer *Scheme 1: sample of over 50,000 transactions across participating online merchants during 2019, compared to overall ecommerce transactions during the same period 2018. *Scheme 2: Authorization rate lift from decline codes within a sample of 17 merchants. 4 - 9% increased approval rate in randomized comparison between token to PAN-based authorizations at a global PSP (Sept. 2019) PAN TOKEN ~ 6% Increase T
  10. 10. Netcetera‘s ToPay eCom Token Connector One interface to connect to multiple schemes with unified flows
  11. 11. EMV® Secure Remote Commerce: Key points of EMV SRC framework Future standard to make card based e-commerce checkouts more seamless and secure Pay securely via single, consistent SRC checkout button Scheme neutral (EMVCo) successor of Masterpass & Visa Checkout to help interoperability
  12. 12. What it looks like: See it live in the US SRC button
  13. 13. What it looks like: See it live in the US First time enrollment Identified user
  14. 14. What it looks like: See it live in the US Automatic device & user recognition
  15. 15. Benefits of SRC Consistent and seamless checkout experience SRC works the same for all schemes No tedious card data entry: enrolled and returning consumer and device are recognized Enhanced security and reduced complexity Every card is digitized: dynamic data improve security Consistent, simplified integration Integration options for EMV 3DS & scheme tokenization
  16. 16. Cards-on-File 29% Replace PAN by token to reduce risk Use EMV cryptogram to improve security Use lifecycle information • to keep credentials up to date • to avoid abandonments • to provide a more seamless UX Cards in guest checkout 19% Same as above plus Improve usability for customer Cards 61% Direct transfer 28% Other 11% e-commerce checkout types (Europe) How scheme tokenization & SRC help increase conversion, convenience and security T
  17. 17. Silke Hubert Pre-Sales Consultant Digital Payments silke.hubert@netcetera.com Visit us at booth P12 Thank you www.netcetera.com

×