RSS feed Get our RSS feed

News by Topic

BizReport : Ecommerce archives : November 24, 2016

European Banking Authority checkout proposals will hike cart abandonment

Proposals by the European Banking Authority EBA) to bring in new additional authentication processes at online checkout could see more abandoned shopping carts, warns Visa.

by Helen Leggatt

The EBA proposal to enforce additional security checks to implement Strong Customer Authentication (SCA) for transactions over €10 (US$10.60) could be the death knell for express checkout options such as one-click ordering. By introducing security checks, such as password entry or use of a card reader, online and mobile checkout could become unwieldy and time consuming.

According to research by Visa, the changes could impact as much as €6 billion (US$6.3 billion) in transactions across Europe as 95% of Europeans currently spend more than €10 online. Cart abandonment would increase as more than half of consumers said they would abandon purchases if more steps were added to checkout.

"These new proposals threaten to seriously disrupt the way we all shop. The plans will bring a host of complications and inconveniences including more declined transactions and longer and more complicated checkout experiences with little if any benefit to consumers," said Peter Bayley, chief risk officer, Europe at Visa.

"Managing payments is always about balancing security and convenience. If you tip the balance too far one way, you end up making it either too difficult or too risky for consumers to make purchases wherever, whenever and on whatever device they want. Either way it annoys consumers and damages businesses' potential to sell their goods and services."

Tags: checkout, ecommerce, Europe, online shopping, payments, security

Subscribe to BizReport

  • dieseltaylor

    A more nonsensical argument I have yet to see. If it is a requirement of shopping people will have to lump it and take more time.

    Alternatively more payment points for customers to use.

    I would love to have read the survey questions which produced the 50% abandonment figure. Still surveys have been quite laughable all this year so why not have another.



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.