This document discusses the opportunities provided by 3-D Secure 2.0 for all stakeholders, including financial institutions, consumers, and merchants. It summarizes the key differences between 3-D Secure 1.0 and 2.0, noting that 2.0 provides more sophisticated authentication, an enriched dataset, and additional use cases beyond just payments. The document also outlines the PSD2 regulation timelines and requirements around strong customer authentication. It emphasizes that risk analysis and access to data are critical to enabling frictionless authentication under 3-D Secure 2.0 and PSD2.

1. New opportunities for all stakeholders
3-D Secure 2.0
Stephan Rüdisüli
Account Manager Payment Security
Netcetera
Patrick Juffern
Business Development Manager
INFORM GmbH

2. INFORM Profile
● Experts in hybrid Digital Decisions systems
● Since 1985 business increased by + 20% p.a.,
profitable for 33 consecutive years
● Private ownership: founder and managers
● Diversification in terms of products and markets
→ maximize resistance to economic trends
● Overall objective: sustainability!
0100200300400500600700800
850+
1969 1985 today

3. Facts and figures
Transactions
2.5 Mio
are processed per month
Cards
25 Mio
are protected by us
Banks an Issuers
1000
trust in our expertise
550
Employees
Honored with
28
awards in the last 5
years
14 offices in
6
countries

4. 3-D Secure 2.0 & PSD2 Timelines
PSD2
Strong Customer Authentication
September 14, 2019
Visa 2.0
Issuer Mandate, Europe
April 12, 2019
Mastercard 2.0
Issuer Mandate, Global
April 1, 2019

5. ?

6. The E-Сommerce Payment Challenge
User Convenience Risk & Fraud Regulators
Ease of use
Smooth processes
Reduce Risk
Avoid Fraud
Comply with national
and international
regulations
Safeguard the
revenue of all
stakeholders
Revenue

7. 3-D Secure 1.0 vs 3-D Secure 2.0
3-D Secure 1.0
• Static Password
• Limited Dataset
• Merchant bound by issuer
decision
• Browser dependent
• Payment use case only
3-D Secure 2.0
• Sophisticated
Authenticators
• Enriched Dataset
• Merchant opt-out option
• Mobile enabled
• Additional use cases

8. PSD2 SCA (Strong Customer Authentication)
Out of Scope
• MOTO
• Merchant Initiated
Transactions (MIT)
• Interregional Transactions
(one-legs out)
• Anonymous cards
Exemptions
• Low Value Transactions
• Low Risk Transactions
(TRA)
• Whitelisted Merchants
• Recurring Transactions
• Secure Corporate
Payments

9. How to make it work
Always make a Risk Analysis
if Risk to high… Decline!
PSD2 Exemption?
if yes… Frictionless!
…SCA Challenge!
all other transactions

10. Creating a Digital Fingerprint 3-D Secure 1.0
MATTER OF MILISECONDS
AUTHENTICATION
IPIP

11. Creating a Digital Fingerprint 3-D Secure 2.0
MATTER OF MILISECONDS
AUTHENTICATION
IPIP

12. Creating a Digital Fingerprint 3-D Secure 2.0
MATTER OF MILISECONDS
AUTHENTICATION
IPIP
✓
NO SCA
Frictionless

13. Creating a Digital Fingerprint 3-D Secure 2.0
MATTER OF MILISECONDS
AUTHENTICATION
IPIP
SCA
Challenge

14. Creating a Digital Fingerprint 3-D Secure 2.0
MATTER OF MILISECONDS
AUTHENTICATION
IPIP
✘
DECLINE

15. How to make it work
Data is Key!
Commitment to
implement!
Commitment to deliver
Data!

16. What are the benefits of 3-D Secure 2.0
Financial Institutions
Decrease fraud
Increase approval rates
Lower service costs
Added protection
Minimize disruptions
Better customer experience
Consumers
Reduce cart abandonment
Faster checkout
Liability shift
Merchants

17. Thank you for your attention !