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September 30th 2020

3 Days of 3D Secure – Day 1: Australia

Figures to date for card transactions sent via EMVCo’s 3D Secure protocol show a 13 percentage point increase in successful transactions (83% vs 70%) compared to the same period last year in Australia.


Australia ranks #34 out of 39 countries for % of successful transactions in the card markets analysed.

While the proportion of frictionless transactions (taking <5 seconds to authenticate) has decreased (1% vs 2%), and the average time to authenticate has increased (37s vs 33s), this significant reduction in failed transactions is very positive for retailers that have shifted online as a result of the pandemic.

Q: What’s the reason behind the increase in authentication time?
A: It’s likely due to new regulation requiring true SCA…

This regulation mandates the 2 authentication factors for SCA for some transactions, increasing friction in the checkout experience for merchants in certain sectors, meaning more steps in the process for customers and therefore overall a longer time to authenticate. These new rules were introduced in mid-2019 so the impact is primarily felt in the 2020 numbers.Even still, most European markets experience much longer wait times up to 60 seconds+ compared to Australia’s ~30 seconds, primarily due to the fact that Australian consumers are typically not faced with the full force of 3DS authentication. Strong authentication is the rule (with some exceptions) in Europe, whereas frictionless is the norm in Australia with only high-risk transactions being hit with the full SCA requirement.

For many Australian retailers, the new challenges faced online can be difficult to manage – but an optimal strategy could see sales soar. Gaining liability shifts while maintaining control of customer experience is key, as has been proven by the substandard implementation of PSD2 across Europe.