Concerns over the industry’s readiness ahead of the application of Strong Customer Authentication


As the deadline of 14 September approaches, more and more stakeholders are voicing their concerns regarding the uneven awareness and readiness across the EU. From banks, payment service providers to retailers, the different sectors have reiterated in recent communications their full support for the objective of the Regulatory Technical Standards to reduce fraud, but have also highlighted serious concerns that a rushed enforcement of the new rules could have huge negative effects on conversion rate and ecommerce sales.

Implementing SCA and its exemptions requires extensive coordination of technical and other protocols among the card scheme networks (including Visa, MasterCard and American Express), merchant PSPs, card issuing PSPs, merchants, regulators and other service providers. It also requires merchant’s readiness to complete SCA challenges.

Three months away from the September deadline, the conditions are not met to ensure a smooth application of the standards. For that reason, European associations from various sectors have called for a pan-European managed implementation, which ensures that conditions such as increased communication efforts or deployment of most recent protocols are met.

According to Stripe, Europe’s online economy risks losing €57 billion as Strong Customer Authentication (SCA) is enforced and only one in two businesses anticipate being compliant before September.