Payments down 20% in my SaaS after EU introduced PSD2
globalbankingandfinance.com
Payments down 20% in my SaaS after EU introduced PSD2
1–10 of 121 posts
Re: Payments down 20% in my SaaS after EU introduced PSD2
#2I had my first encounter with a PSD2 measure the other day. It was very straightforward with my bank. The shop redirected me to my bank's website where I logged in with MFA and clicked OK. Done.
A subsequent order worked by just entering my CC details.
Re: Payments down 20% in my SaaS after EU introduced PSD2
#3> The first thing that can reduce conversions is the higher rate of 3DS triggered user abandonment. Since many consumers are not familiar with the 3DS process, there is a higher chance of abandonment during the authentication process.
This would presumably go away once PSD2 is fully implemented and all purchases require it, which is a benefit of requiring it by law rather than letting merchants choose whether or not to require it. Requiring it is a common good in the sense that it reduces the economy's overall loss due to fraud.
Additionally, as the article mentions, using 3DS shifts liability for charge not authorized disputes from the merchant to the bank. Thus, the decreased rate of conversions must be compared against decreased losses due to chargebacks.
Re: Payments down 20% in my SaaS after EU introduced PSD2
#4what is PSD2?
Re: Payments down 20% in my SaaS after EU introduced PSD2
#5what is PSD2?
A set of directives by the EU to make online payment transactions more secure and reduce fraud. Some of those directives impact UX, including 3DS requirements, which is a form of 2fa for payments.
Re: Payments down 20% in my SaaS after EU introduced PSD2
#6Purely anecdotal but I have never had any problems with increased authentication for purchases. It feels safe to digitally sign every single purchase I make and with a good UX on the store front it can be a great experience.
Re: Payments down 20% in my SaaS after EU introduced PSD2
#7Very interesting to hear about the impact of this regulation on industries many here work in but I have many questions that were answered…
What is PSD2?
What is 3DS?
Why do these exist and what did they solve?
Edit: Thanks for the responses everyone!
Re: Payments down 20% in my SaaS after EU introduced PSD2
#8Then make your service compelling enough for me to go through the motions of confirming the payment in my banking app.
Or integrate with Android Pay/Apple Pay.
Cry me a river, but I rather prefer to be in control about who gets to withdraw money from my card, and how much.
Re: Payments down 20% in my SaaS after EU introduced PSD2
#9This sounds wonderful to me. 20% of would-be buyers were saved from mindlessly consuming and paying for stuff they don't need — by just a tiny little UI friction. Imagine what a mandatory essay about the reason for your purchase would accomplish.