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Payments down 20% in my SaaS after EU introduced PSD2

globalbankingandfinance.com

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Re: Payments down 20% in my SaaS after EU introduced PSD2

#111

Post by sofixa »

_0w8t wrote: post #110
tharkun__ wrote: post #105

Earlier quoted context omitted.

And that I guess is the OPs point. It should be a choice a business can make based on their circumstances. Instead, the EU legislates conversion loss for everyone. If you think about it, when was the last time you entered even a CVV2/CVC on Amazon? Compare that to most regular sites which require you to enter CVV. Some allow you to enter the card holder name and address, while others don't and just sent the shipping…

In Norway after the redirect to the payment page from a bank to approve the transaction the only thing one typically types is the phone number and the birthday. The rest happens on the mobile. A bank in Spain implemented this even better as one does not enter anything on the site. Rather one has to go to the bank app on the phone and approve the purchase there. The latter is very frictionless especially with biometri…

> A bank in Spain implemented this even better as one does not enter anything on the site. Rather one has to go to the bank app on the phone and approve the purchase there. The latter is very frictionless especially with biometric authentication

Same here in France at my two main banks, LCL and Boursorama, the payment screen tells you to open the app and confirm the payment.

Re: Payments down 20% in my SaaS after EU introduced PSD2

#112

Post by sofixa »

withinboredom wrote: post #58
thefounder wrote: post #51

Earlier quoted context omitted.

Well...if they use the internet to shop online a mobile app should not be that hard to deal with given it's installed/configured by the bank clerk. All the mobile phones are "smart phones" now anyway.

> a mobile app should not be that hard to deal with My grandma can't even use a smart phone to call people with. She only answers if you call because she is literally terrified of technology.

If she can't handle a smartphone, can she handle internet purchases? If not, the whole discussion is moot because the topic at hand is online payments and their MFA.

Re: Payments down 20% in my SaaS after EU introduced PSD2

#113

Post by sofixa »

radiator wrote: post #107
hocuspocus wrote: post #22

So, some VP at a fraud prevention company recommends merchants to avoid using 3DS and use a fraud detection platform, got it. I don't know if we can find better data somewhere else but I would assume that abandonment rates will decrease thanks to PSD2: - SMS tokens are finally on their way out; more and more people are installing their bank's mobile app, which is used as the second factor (you get a push notification…

And what are people who don't own a smartphone doing? Do they just throw their cards to the trash, since they have become useless?

You can still use the card physically, with chip and PIN, as usual. This only applies to online purchases.

Re: Payments down 20% in my SaaS after EU introduced PSD2

#114

Post by hinkley »

Denvercoder9 wrote: post #13

This article would be significantly better if it introduces what PSD2 and 3DS actually are, for those unaware of the abbreviations. PSD2 - https://en.wikipedia.org/wiki/Payment_Services_Directive#Rev... 3DS - https://en.wikipedia.org/wiki/3-D_Secure Furthermore, I want to note that the author works for a company that sells products that "eliminate unnecessary 3DS friction" (in their own words).

The tribal knowledge on this one is thick as molasses.

> On 8 October 2015, the European Parliament adopted the European Commission proposal to create safer and more innovative European payments (PSD2, Directive (EU) 2015/2366). The current rules aim to better protect consumers when they pay online, promote the development and use of innovative online and mobile payments such as through open banking, and make cross-border European payment services safer.[10]

> An important element of PSD2 is the requirement for strong customer authentication on the majority of electronic payments.

Re: Payments down 20% in my SaaS after EU introduced PSD2

#115

Post by sib »

em-bee wrote: post #106
sib wrote: post #87

Earlier quoted context omitted.

>> more and more people are installing their bank's mobile app, which is used as the second factor (you get a push notification, you have to unlock and accept the transaction Great - so much for those times where I've been traveling internationally, been able to make a purchase using a web page hosted on a shared computer or one owned by a companion, but don't have mobile phone access to get a push notification. Than…

i get your point, but i can't remember in recent years that there would be any difficulty to get wifi access even if i didn't have roaming, so this feels like a mere inconvenience instead of an impossibility

In a particularly ironic situation, I was trying to log in to my bank's website on a computer from a distant international location so I could pay the credit card bill and, since it was a new browser, the bank required 2FA via my phone in order to log in. Of course, I could not receive the SMS, so could not log in, and could not make the payment.

Re: Payments down 20% in my SaaS after EU introduced PSD2

#116

Post by em-bee »

sib wrote: post #115
em-bee wrote: post #106

Earlier quoted context omitted.

i get your point, but i can't remember in recent years that there would be any difficulty to get wifi access even if i didn't have roaming, so this feels like a mere inconvenience instead of an impossibility

In a particularly ironic situation, I was trying to log in to my bank's website on a computer from a distant international location so I could pay the credit card bill and, since it was a new browser, the bank required 2FA via my phone in order to log in. Of course, I could not receive the SMS, so could not log in, and could not make the payment.

ah, yes, but as has been said elsewhere in this discussion, many banks now use apps instead of sms. an app would have worked over wifi.

Re: Payments down 20% in my SaaS after EU introduced PSD2

#117

Post by TazeTSchnitzel »

SahAssar wrote: post #93
TazeTSchnitzel wrote: post #33

Earlier quoted context omitted.

Here in Sweden, some major banks already refused to let you do card transactions without SCA/3DS, before PSD2 was even passed. As a result, PSD2 finally being implemented is a welcome relief for me, because those annoying services that would always cause a card decline are now being forced to show a 3DS prompt instead. That prompt is also pretty convenient here because of the wide deployment of Mobile BankID . (The e…

While I mostly agree with you the fact that BankID does not support (desktop or non-android) linux at all or other secure auth methods like U2F for any platform is sad. If you want to be a modern citizen in sweden today you need to use at least one device with a non-free OS just to access basic services.

There is AB Svenska Pass's eID which any registered resident of Sweden can get (https://skatteverket.se/id-kort) and which supports Linux.

Unfortunately, only Swedish Tax Agency services (including minmyndighetspost.se) seem to support it, which means it's not a realistic alternative.

I think all essential services should be forced to support multiple providers.

Re: Payments down 20% in my SaaS after EU introduced PSD2

#118

Post by withinboredom »

sofixa wrote: post #112
withinboredom wrote: post #58

Earlier quoted context omitted.

> a mobile app should not be that hard to deal with My grandma can't even use a smart phone to call people with. She only answers if you call because she is literally terrified of technology.

If she can't handle a smartphone, can she handle internet purchases? If not, the whole discussion is moot because the topic at hand is online payments and their MFA.

Touché

Re: Payments down 20% in my SaaS after EU introduced PSD2

#119

Post by rokkk »

So, some clarifications..

This is not my article, I just found it when searching for any data on the subject. I'm aware of the article author's bias on the subject.

We run a B2B SaaS and 20% is the drop we've seen (comparing to monthly numbers of the last 5 years). This still needs to be analyzed better but it's taking time due to our messy system of multiple carts using different payment service providers.

Personally as an EU citizen I'm very in favor in these changes. I think the UX will become even more of a differentiator for banks and related products which is great. Banks FINALLY being forced to open APIs is also great for the fintech industry, so I'm not bitter at all. Just curious to see what other SaaS businesses have seen in their Euro traffic.

Re: Payments down 20% in my SaaS after EU introduced PSD2

#120

Post by WesolyKubeczek »

karatinversion wrote: post #72
WesolyKubeczek wrote: post #56

Earlier quoted context omitted.

Seriously, I'm used to a bit of contemplation before I hit that final "Buy" and proceed to the payment gateway. I like it. I like that I have to enter my billing/shipping addresses. Decide if I want an invoice for a business or an individual. Think again. Go-around hunting for a better option one last time. Lately, I've had a harrowing experience of misclicking on Amazon. The bastards have put "Add to Cart" and "Buy…

If you don’t cancel the purchase on principle, it was the correct (revenue maximising) design. Not that I can talk, this is how I started my print subscription.

For them it was correct. Not for me. For me, it was abrupt.

I'm going to adblock the "buy with 1-click" button.

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