Strong Customer Authentication (SCA) – Impact Assessment – February 2021

26th March 2021
Contributor:
Mohammed Patel
Mohammed Patel

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 analysis of February data illustrates significant transaction failure with the estimated European failure rate on transactions at 31% compared to 33% in January 2021. While this is a modest improvement, failure rates are still far too high, and, as SCA is enforced on more transactions, merchants risk losing a significant number of sales if these rates do not improve quickly.

Key findings in this update include:

  • Estimated average failure rate in Europe at 31% in February
  • Estimated annual sales at risk of €96 billion
  • The failure rate for Italy is estimated to be at 47%, significantly higher than the European weighted average of 31%

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