With 15% of online merchants indicating in Ecommerce Europe’s 2016 cross-border e-commerce Barometer that online payments continue to be a problematic area when selling cross-border, Ecommerce Europe invited industry experts to the Ecommerce Europe Annual Conference 2016 in Barcelona. In the morning, the day’s speakers and panelists addressed how PSD 2 and new and upcoming payment solutions can disrupt the online payments sector while the focus of the afternoon lay on payment security.
PSD2 – Preparing e-commerce for innovative online payments
Moderated by Liz Oakes, Director of KPMG UK, the e-Payments theme session at the Ecommerce Europe Annual Conference kicked off with Paul Alfing, Chair of the e-Payments Working Committee, presenting Ecommerce Europe’s vision on online Payments. Today, European online merchants face a patchwork of 28 legal regimes and dozens of payment solutions when trading cross-border online. In his presentation, Paul Alfing focused on the need to empower the consumer through seamless omnichannel shopping experiences. Furthermore, he focused on the rapid innovations observed in the payment solutions sector such as fintech, online wallets and biometric payment security.
Before the panel’s discussion round, Marco Fava, Managing Director of CleverAdvice, presented a recent Industry study on improving European online payments regulations. The outcome of the study argues that mandating Strong Customer Authentication (SCA) for each online payment transaction will put unnecessary burdens on the consumer’s checkout experience leading to an increase in purchase abandonment. In contrast, the study encourages European policy makers to encourage Targeted Authentication methods through a risk-based approach.
Payment security should correspond to a seamless and convenient shopping experience
With the afternoon focus on ensuring payment security in e-commerce, the session’s over-arching theme centered around ensuring customers’ trust in e-commerce, tackling online fraud and methods of electronic identification (eIDAS). Franck Boniface of French start-up VestiaireCollective.com introduced the afternoon session’s theme, providing the audience with an overview of the innovative technology and risk-based approach his company applies in tackling online fraud in the checkout process.
According to Stefanie Ros, Policy Advisor at Ecommerce Europe, consumers shopping online are looking for two things in their checkout experience: security and ease of use. While future legislation should highlight payments security, policy makers should encourage trust-building industry schemes such as the Ecommerce Europe Trustmark and electronic identification.
Building trust and ensuring payment security in e-commerce
Ensuring consumer security in online payments took the focus of the day’s expert-studded panel discussions. Joined by Paul Alfing and Franck Boniface, the day’s panels provided a platform for policy makers of the European Commission and the European Central Bank to discuss policy makers’ regulatory actions in online payments security and their effect on online retailers. While all panelists agreed on the importance of eID and Trust Services in supporting cross-border e-commerce, retailers and stakeholders stressed that over-regulation in the form of SCA in payment security would have a negative effect on online merchants’ sales conversions.
Ecommerce Europe would like to thank all speakers and panelists of the e-Payments theme session.
More information on Ecommerce Europe’s positions can be found here.