Card issuing platform Marqeta has launched a new 3D Secure solution to meet Strong Customer Authentication (SCA) requirements.
SCA is part of the EU’s Payment Services Directive 2 (PSD2) and requires merchants to undergo multi-factor authentication to mitigate online fraud risks. The announcement comes as Covid-19 has accelerated online payments.
Kevin Doerr, Marqeta Chief Product Officer, said: “As businesses turn to digital payments in the face of Covid-19, fraud has become a prevalent issue for consumers. It’s imperative that our customers are provided with complete control over their transactions to help combat fraud and deter risk.
“Our single global platform enables advanced authentication methods for card issuers that improve security without compromising the end user experience.”
Digital banking provider Twisto is currently in development to use Marqeta’s 3D Secure solution to authenticate cardholders. It will leverage Marqeta’s open APIs to design an authentication experience that utilises biometrics within its mobile banking app to verify cardholders.
In addition, Twisto is able to participate in the 3D Secure authentication request if they want to challenge a cardholder. This will allow them to incorporate its own real-time fraud data to make risk decisions.
Michal Smida, Twisto Founder and CEO, said: “Our customers expect a seamless check-out experience with our mobile app and we knew we needed to find a solution that would allow us to reduce fraud while also providing us full control over the cardholder experience.
“With Marqeta’s APIs, we were able to easily design the authentication process without adding unnecessary friction to the customer experience and are now positioned to expand into new markets faster and more securely.”
Using the solution
3D Secure applies to transactions where a card is not present such as online and mobile. Marqeta hopes its solution will help European issuers to comply with SCA regulations.
Marqeta’s 3D Secure solutions promises to allow issuers to:
- Own and customise the authentication experience for cardholders.
- Authenticate and authorise transactions on one unified platform to minimise integration and cost.
- Enhance data sharing between parties to better identify cardholders and reduce their friction.