Many countries now accept a digital signature to assist companies and organizations in improving their services and related business operations. Businesses also use technology such as digital signature authentication to help improve their management and overall workflow processes.
As e-commerce has grown over the recent years, there also comes the rise of utilizing digital wallets and a shift in mobile payments. As more customers and enterprises become reliant on mobile digital wallets and online transactions, there comes the challenge of implementing the appropriate kind of strong authentication methods such as PSD2 or Payment Service Directive.
Aside from using digital signatures, some merchants and issuers have had difficulty implementing the PSD2 (Payment Service Providers Directive), which went into effect in Europe. There were high abandonment rates in e-commerce across Europe due to high implementation costs and lengthy implementation cycles. Moreover, fraud can still occur despite some strong authentication methods for customers being in place.
Modern technology has made it possible to develop and use digital wallets and mobile payments. These features are being implemented by businesses and other organizations to provide a seamless online experience for their customers. Enterprises are also adding more robust authentication methods to their systems to strengthen help cybersecurity and prevent fraud.
The guiding principles for strong customer authentication are designed to help in ensuring fraud prevention in the online world. However, it is a concern that not all implementation methods are equal, as some multi-factor authentication methods are more robust than others.
Online retailers, third parties and issuers should be more attentive to these points of weakness. In particular, having strong customer authentication methods are essential to help create practical and effective ways to prevent customers from being cheated online.