iAxept, a UK-based fintech company, announced on Tuesday the launch of a Strong Customer Authentication (SCA)-compliant contactless payments card for internet shopping.
Users of the card can use it contactless with their phones similar to a point-of-sale (PoS) machine, meaning a tap on the back of the phone with the card will fetch all the necessary information while checking out from a merchant website.
Per a survey by Kantar TNS, 94 percent of online shoppers have abandoned their shopping cart due to complex checkout process, 55 percent of shoppers do not want to either key in their card details or store them online, while 33 percent would buy more online if there were a secure and easy checkout process.
The United Kingdom-based company is trying to fit itself in this gap, easing the process of payments.
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Similar to any contactless payments method, iAxept’s card is using near field communication (NFC) technology, meaning users need to enable NFC on their phone before taping the card.
Regulatory requirements need to be followed
Due to regulatory restrictions of the European Union’s Payment Service Directive 2 (PSD2), there is also a limit for making contactless transactions, and if the user’s transaction value exceeds the limit, a PIN needs to be typed in for payment confirmation.
iAxept also pointed out that with its new card, merchants and their payment service providers will no longer be liable for ‘card-not-present’ fraud-related financial losses and chargeback costs as the transaction is classed as ‘card-present.’
Commenting on the new product, Doug Gray, chief commercial officer at iAxept, said: “We have received massive interest from merchants, acquirers, and PSPs from all over the world. iAxept Online Contactless solution is a perfect solution for the SCA requirement and the EU payment industry needs to act now in order to fulfill the SCA deadline by end of the year without completely disenfranchising their merchant clients with an inferior customer experience and lost sales.”