More than a third of UK shoppers have reported being unable to complete an e-commerce transaction due to new strong customer authentication (SCA) rules, according to a survey conducted for Signifyd.
Since March 14th, all online transactions exceeding £25 have required two-factor authentication checks, marking the most significant change to UK payments regulation since the introduction of Chip & Pin in 2006. This measure aims to mitigate online fraud.
Survey results indicate that nearly 75% of the 2,000 respondents believe that the additional steps taken at checkout to secure their transactions are worthwhile. However, 36% of participants have experienced difficulties completing a transaction as a result of the new regulations, and 73% stated they would switch to a competitor after a poor online experience.
Furthermore, 33% of UK shoppers admitted to avoiding certain retailers due to frustrating experiences. Similar surveys conducted in France and Italy showed even higher percentages, with 46% and 56%, respectively, expressing the same sentiment.
Ed Whitehead, Managing Director for Europe at Signifyd, remarked, “Consumers in the UK and across Europe clearly want their accounts protected from fraud during online shopping. However, they are also unwilling to endure frustrating checkout experiences. This sends a strong message to merchants and their banking partners: they must implement solutions and technologies that secure transactions without adding unnecessary friction to the shopping process.”