Today, consumers have more ways to pay than ever before. It is projected that there will be 20 billion connected devices making digital purchases within the next three years. Whether consumers purchase goods through a browser or mobile app, keeping these digital purchases secure is increasingly important and challenging. Industry research estimates that half of the digital commerce transactions declined due to suspected fraud were legitimate.
In 2001, VISA created a security measure for these purchases by launching 3D Secure to add another layer of protection for online card-not-present transactions. 3D Secure created an authentication data connection between digital merchants, payment networks, and financial institutions to analyze and share more information about transactions.
Customers were then asked to set a static password to authenticate transactions but their inability to remember their passwords on subsequent visits lead to increased shopping cart abandonment. This barrier resulted in a low adoption rate among merchants, who wanted to make purchases as easy and seamless as possible for their customers. Ultimately, this behavior put all transactions at risk for fraud.
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