Riskified survey flags up major PSD2 concerns

New research from Riskified highlights a significant disparity between retailers’ and online shoppers’ awareness of the Payment Services Directive 2 (PSD2).

The company’s survey of 2,000 consumers and 200 retailers, with respondents split across the UK, Germany, France, and Spain, found that nine out of ten retailers believe consumers are ‘somewhat’ or ‘very aware’ of PSD2. However, 76% of consumers report that they haven’t even heard of it.

Meanwhile, 33% of the latter would cancel their online purchase and go elsewhere if presented with PSD2’s identity verification requirements. One in five retailers still haven’t taken any steps to minimise the negative impact of the regulation on their online sales.

Eido Gal, Co-Founder and CEO, Riskified, says: “Fraud is a major concern in e-commerce. We’re always in favour of better security, but it shouldn’t have to be a tradeoff with the customer experience. Unfortunately, some of PSD2’s security requirements could have a detrimental effect on online shopping, leading to unhappy customers and cart abandonment.”

“As these results show, anything that interferes with the online checkout process puts merchants at risk of losing customers and revenue. As PSD2 comes into effect, merchants should do everything they can to continue to provide excellent customer experience, while keeping transactions secured and fraud levels as low as possible.”