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CMSPI has released the SCA Economic Impact Assessment July 2021 analysis, featuring data that shows the potential sales at risk and overall readiness of the industry.
Now, when the enforcement deadline for Strong Customer Authentication (SCA) has passed for most European countries, CMSPI’s analysis of July data yields an estimated European failure rate on transactions of 24% compared to 25% in June 2021.
Source: CMSPI, Strong Customer Authentication – Impact Assessment: July 2021
Although the improvement will be welcomed by merchants, the estimated failure rate is still higher than what the industry is aiming for. Extrapolated over the course of a year and applied to online retail volumes, if these rates were to continue, it would mean over EUR 75 billion of sales at risk due to declines or abandonment for retailers. These high rates of failure are largely the result of continuing fundamental issues occurring within the payments supply chain.
According to CMSPI, failure rates on transactions being challenged through 3DS V2 are still high, with estimated failure rates in Belgium, Germany, and Italy at 42%, 33%, and 29%, respectively. These countries have the highest failure rates of all the countries considered as of July 2021. On a European weighted average basis, CMSPI’s estimates suggest that failure rates have seen improvement since August 2020, with failure rates improving by eleven percentage points from 35%.
Source: CMSPI, Strong Customer Authentication – Impact Assessment: July 2021
CMSPI is a global, independent payments consultancy, working exclusively with some of the world’s largest merchants, implementing optimal payments strategies and supply chains. The consultancy collaborates with merchants only and has no affiliation to any financial institution or bank. Besides, CMSPI’s advocacy and economics team works closely with global regulators and trade bodies, representing merchants in collective efforts to campaign for fair and transparent payments landscapes worldwide. To learn more about CMSPI’s Strong Customer Authentication (SCA) Impact Assessment, please click here for June 2021.
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