A lack of preparedness for the EU’s new regulations on authentication could cost Europe’s online economy more than €50bn according to a number of payment processors and e-commerce merchants, enligt Finextra.
A study produced by payment firm Stripe and research firm 451 Research found that only half of the 500 businesses it surveyed expect to be compliant with the EU’s Strong Customer Authentication (SCA) rules which are due to come into force in September.
Furthermore, the research suggests that the lack of readiness is disproportionately higher among smaller businesses with 60% of companies with less than 100 employees admitting that they are either unaware of the SCA regulation, unlikely to be compliant before September or unsure of when they will be compliant. In contrast just 4% of firms with more than 5,000 employees are unware of SCA. Part of the PSD2 regulation, SCA was brought into bolster security and reduce fraud in online transactions. However, it also requires technology and system changes and cooperation from consumers, many of whom may be unware of the additional steps thyat will be added to the payment process.