Thursday, July 22nd, 2021
Especially over the past several years, the ease with which payments are made continues to evolve. As consumer’s needs and preferences have changed, providers have shifted their offerings as well. One of the biggest focuses has been on the importance of authentication and identity in the age of faster, digital payments.
According to Simon Law, co-founder and CEO of LoginID, “Strong authentication and strong identity, the foundation of authenticated payments, is being mandated by more jurisdictions everywhere, and should be an integral part of any payment system.”
What is Payment Authentication?
Essentially, payment authentication is the process of confirming a customer’s identity through at least one authentication factor. The aim is to ensure that the money is sent by the right person and received by the right party. By combining both strong authentication and identity, you ultimately create a fortified digital signature.
How to Achieve Strong Authentication?
So, how can a merchant go about achieving this? How do you create a strong authentication and strong identity? The answer lies in the evolving payment methods and systems themselves. Currently, the demand is for more flexibility, increased security and a frictionless experience.
As of now, transaction execution is still very cumbersome. Users are often required to provide one-time passwords (OTP), or they have to download separate apps to generate codes. These methods are understandably vulnerable, and they add unnecessary friction to the payment experience. The solution is to push for mainstream authenticated payments.
Why are Authenticated Payments So Effective?
Another big question merchants have, “why are authenticated payments so effective?” In short, the process surrounding an authenticated payment provides a digital “receipt” once a payment is complete. A signature. A “trail” you can trace.
This type of payment protects merchants, processors and consumers. Increasingly, this payment type is being mandated by more jurisdictions across the country. In truth, it should be an integral part of any payment system, for every business type, across all industries.
How to Find the Right Payment Processing Provider
Many business owners are making moves this year to ensure the payment experience is as seamless, safe and fast as possible. The key to achieving this is to find the right provider for your business type. One of the best ways to narrow down your list is to use the resources and reviews a team like bestpaymentproviders.com provides. Discover the right payment provider for your business that meets your unique needs.