Major disparities in Europe regarding the use and adoption of the 3-D Secure authentication process: from a low of 16.6% in Spain to a high of 81.8% in Belgium. In France, 19.4% of online purchases paid for by card are made using 3-D Secure. Ogone’s Flex3DS solution enables merchants to bridge the gap between their security needs and conversion rate ambitions.

Ogone, the Ingenico Group subsidiary specialising in online payment solutions, presented the results of its 3-D Secure* survey conducted in March 2014 in 7 European countries: France, Germany, the United Kingdom, Belgium, the Netherlands, Spain and Switzerland.

In France, 19.4% of card payments are carried out using the 3-D Secure solution. This represents a fall of 2.1 percentage points in the use of this technology within one year. Elsewhere, nearly 50% of merchants opted to use this form of authentication, which means that most merchants opt to use the 3-D Secure solution selectively. This is because more and more traders are looking for ways to achieve the best balance between the user experience of their customers and their exposure to the risk of fraud.

3-D Secure authentication: major disparities between France and her European neighbours.
The survey by Ogone, representing over 10 million transactions, reveals significant disparities between the countries surveyed. Whereas the majority of card payments go through the 3-D Secure authentication process in the United Kingdom (52.5%), the Netherlands (60.1%), Belgium (81.8%) and Switzerland (74.6%), online buyers in other countries provide authentication in less than one in three cases when they use their cards to make purchases. This is particularly the case for France (19.4%), Germany (28%) and Spain (16.6%).

Flex3DS: the optimised, optional 3-D Secure solution, designed to bridge the gap between merchants’ security needs and conversion rate requirements To provide security for their business while at the same time maximising their conversion rate benefit, more and more e-traders are using 3-D Secure authentication on a selective basis thanks in particular to the Ogone solution. In actual fact, Ogone offers a flexible tool that enables the merchant to activate or deactivate the additional authentication step of the cardholder, based on a certain number of criteria, including the origin of the card, the amount involved in the shopping basket, the channel through which the purchase is made and any suspicion surrounding the order.

“This fifth 3-D Secure barometer confirms Ogone’s intention of best dealing with the issues that merchants and traders may have in relation to e-commerce,” explains Simon-Pierre de la Seiglière, Director Southern Europe at Ogone. “By rolling out the Flex3DS solution in France and Europe, we are continuing to help our existing and potential customers to deal with the challenge of online payment security, while enhancing their conversion rate.”

Methodology used by the barometer
For the purposes of this fifth 3-D Secure barometer, the survey was conducted on a total of 10,567,005 transactions made between 15th March 2014 and 31st March 2014 with 50,000 Ogone e-traders. The barometer analysed the adoption rate of 3-D Secure across 7 European markets (France, Germany, the United Kingdom, Belgium, Netherlands, Spain and Switzerland) using a number of different indicators:

  • The rollout of 3-D Secure per country
  • The level of successful authentication
  • The rollout by 3-D Secure merchants per country (traditional application or optional).

The statistics do not include shopping baskets abandoned before finalisation of the order, which are particularly significant in those countries where 3-D Secure authentication is not used extensively.

*Recap on 3-D Secure
Used under the commercial names of Verified By Visa, MasterCard SecureCode, American Express SafeKey, Diners ProtectBuy and JCB J-Secure, the 3-D Secure payment security system enables traders to limit the risk of fraud associated with attempts to steal people’s identity. Whenever a payment is made, 3-D Secure ensures that the card is being used by the real cardholder. When both the trader and the cardholder’s bank have 3-D Secure in place, there is an additional step required at the time of payment. In addition to the bankcard number and the three-digit security code, online users also have to enter a password, such as their date of birth (low authentication) or a dynamic single-use code (high authentication). To benefit from the Flex3DS functionality, the trader must have the authorisation of the buyer. In the event of fraud, 3-D Secure also enables e-traders to transfer liability in the payment chain.

Download the 3-D Secure Barometer 2014 [pdf]