September 28th 2021
Strong Customer Authentication (SCA) – Impact Assessment – August 2021
CMSPI’s insights team has been analysing retailer Strong Customer Authentication data to show the potential sales at risk and overall readiness of the industry.
Our analysis of August data yields an estimated European failure rate on transactions of 26% compared to 24% in July 2021.
This estimate failure rate is not only too high, but represents a worsening of the situation with an estimated €82 billion of sales at risk when extrapolated over a 12 month period. Given the impact of this in terms of lost revenue for merchants, it is now more important than ever for retailers to actively optimise their ecommerce arrangements and counteract some of the impacts of SCA on revenue.
Key Findings in This Update Include:
- Estimated average failure rate in Europe at 26% in August
- Estimated annual sales at risk of €82 billion, over 40 times the value of fraudulent transactions in the SEPA region in 2018
- The failure rate for Belgium is estimated to be at 41%, significantly higher than the European weighted average of 26%