Version 2 of 3D Secure—the risk-based authentication method employed by issuing banks—has been hailed as a less intrusive security layer than the original version. Since it enables merchants and payment providers to meet the requirements of Strong Customer Authentication (SCA), which the EU began enforcing in January of 2021 as part of PSD2, this year has seen a rapid increase in 3DS2 implementation. And, according to a recent report by antifraud technology provider Ravelin, while it has been a rocky start in many countries, performance is improving.
In addition to breaking out 3DS2 adoption and performance by country, the report found that, globally, cards issued in North America have the best success rates on both versions of 3DS and that some European markets still are having difficulty implementing 3DS2 effectively.
Overall, 68 percent of payments in the U.S. are using 3DS2, while only 13 percent are doing the same in Europe. Of those payments, 99 percent were successfully authenticated by North American issuers using 3DS2, while only 13 percent were successfully authenticated in Europe.
Also, Mastercard and Discover are more prepared than Visa and American Express for 3DS2, according to the analysis.