The rise and rise of the smartphone is seemingly unstoppable. By 2020, there will be 5.7 billion smartphones worldwide, a growth of 1.9 billion from the end of 2016, according to the GSMA, an industry trade body. Three times as many Europeans are making online purchases using mobile devices compared to even a couple of years ago, our research shows.
Mobile technology is changing commerce, plus the fraud-fighting capabilities that enable commerce. That’s why we’re upgrading Verified by Visa, our global authentication solution designed to make online purchases more secure.
Authentication across channels and devices
Verified by Visa 1.0 was designed for a browser-based as opposed to a mobile-based world. Quite simply this was because personal computers were the only way to shop online back in 1999. That’s when we created the first version of the 3-D Secure protocol.
That said, Verified by Visa 1.0 has been successful in reducing fraud. Fraud rates for fully-authenticated Verified by Visa purchases are typically four times less than for unsecured e-commerce payments. And now we’re upgrading Verified by Visa to improve the customer experience and fraud-fighting capabilities on mobile devices.
We’ve optimised Verified by Visa 2.0 for any type of device — mobile, PC and even digital television — as well as for in-app payment. This makes it easy for consumers and merchants to trade across multiple channels and devices.
Increased data exchange
The merchant and issuer exchange around eight pieces of information as part of a Verified by Visa 1.0 authentication. That’s because Big Data was not really underway when the first version of the 3-D Secure protocol was released. With version 2.0, merchants can pass more than ten times the information. This includes device and transaction type, amount and shipping address and many more, to allow the issuer to better assess the risk of each transaction.
At Visa, we’re very much in favour of what we call a “risk-based approach” to online customer authentication. And the increased data exchange as part of Verified by Visa 2.0 will help with this. Essentially, it’s about getting to know genuine customers better to more effectively manage risk. This way we help customers make, and retailers accept, more sales while minimising genuine sales that are declined.
Meanwhile Verified by Visa 2.0 is also helping banks and financial institutions comply with the PSD2 (revised payment services directive) for card payments. In fact, the new and improved version of Verified by Visa delivers a triple whammy. It helps improve the customer experience, increase security and deliver regulatory compliance. It’s a win-win-win for consumers, merchants and issuers.
Get ready for Verified by Visa 2.0
We’re advising card issuers, acquirers, merchants and vendors to ensure that Verified by Visa 2.0 is in their technology roadmap from early 2018 by starting their implementation planning now.
The early testing programme, plus the release of certified Verified by Visa 2.0 products and the Visa Directory 2.0 will be underway over the summer. We would like to encourage you to look for the Verified by Visa 2.0 implementation materials and guidelines that will be made available on VOL as of Q4.
Verified by Visa 2.0 is a new, improved way to pay securely online and on mobile. It will be coming to a device near you soon…