SCA Report – Latest December Updates

25th January 2021
Contributor:
Avatar
Alex Ellwood

CMSPI’s insights team has been analysing retailer Strong Customer Authentication testing data to show the potential sales at risk and overall readiness of the industry. Our first report – released in September – used testing data for the month of August to estimate €108bn of sales at risk. These sales were at risk of transactions failing, technical errors occurring, and ultimately good customers being forced to cancel their purchases.

September testing data showed an improvement, with the sales at risk estimate falling to €92bn but worsened slightly with October testing data suggesting a sales at risk estimate of €96bn across Europe. November data showed a modest improvement with the sales at risk estimate falling to €89bn and our most recent estimate based on December testing data has shown slight improvement with estimated sales at risk of €85bn. This gives serious cause for concern as this represents the state of readiness just as enforcement of SCA begins for a number of European countries.

The evolution in the sales at risk value differs by country, with some countries showing a worsening of failure rates and an increase in the sales at risk value. Our updated report breaks the sales at risk figure down by country, providing information on the impact on both small and large retailers as well as the evolution of metrics such as 3DS issuer readiness and failure rates.

Key findings in this update include:

  • Estimated total sales at risk has fallen from €89 billion to €85 billion
  • The failure rate for Italy is estimated at 38%, significantly higher than the European weighted average of 28%
  • Italy is estimated to have the largest failure rate of all the countries considered at 38% followed by Spain at 36% and Germany at 33%
  • Germany and Italy are estimated to have seen a worsening of failure rates since the last report

You Might Also Be Interested In These...

Blogs
06.16.2021
PSD2: The European Payments Revolution? Part 2b: What are the Problems with SCA in Europe?

We continue our review of PSD2 in this blog with a focus some of the problems identified by the payments industry in relation to SCA compliance.

Read More >
Resources
06.10.2021
VIDEO: Consolidation – Get the Benefits, Not the Pitfalls

At CMSPI we use our insights to audit payments supply chains and ensure consolidation pitfalls are mitigated.

Read More >
Blogs
06.09.2021
PSD2: The European Payments Revolution? Part 2a: What is SCA and how is it performing?

This is our second blog in a six-part series intended to provide a review of PSD2, three years on from its entry into force.

Read More >
Blogs
06.03.2021
Single Acquiring vs. Multi-Acquiring: 5 Key Considerations

We look at the trade-off between localised and multinational acquiring, and the 5 factors any merchant should consider before making the call.

Read More >
Read the latest report