Digital payments firm Stripe has introduced a delegated authentication feature in a bid to augment payment conversion rates in Europe.  

The company said that the newly launched feature will allow merchants to have their customers authenticate purchases right inside a checkout flow.

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The feature is already implemented by card issuer Wise. Its cardholders will no longer be redirected to their Wise app when substantiating purchases.

Cardholders will now be able to use any biometric authentication method supported by their device, without having to leave the checkout flow.

Erik Kaju, director of Wise Platform and Spend at Wise, said: “We’re thrilled that Wise customers are the first to benefit from this new technology. It makes their lives far easier when making online purchases, whether they’re ordering a takeaway or shopping via TikTok. We’re proud to work with Stripe to solve this complex problem together.”

To slash payment fraud, the EU has fully rolled out Strong Customer Authentication (SCA) regulation this year.

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The regulation requires issuers to mandatorily use two-factor authentication to prove the accurate identity of the purchaser. In case of fraud, the issuing bank is held liable, and the business is not exposed.

Stripe EMEA business lead Matt Henderson said: “Every pound and euro counts, and Stripe is intensely focused on maximizing revenue for our users.

“Our delegated authentication feature is a powerful lever to increase the payment conversion of merchants on Stripe, which means more money into their topline without asking them to lift a finger. Across all SCA-covered transactions, this could save billions for businesses every year.”