New Survey Finds Most Consumers are Unaware of PSD2 Regulations

New Survey Finds Most Consumers are Unaware of PSD2 Regulations

The e-commerce specialist Riskified has released the results of a new survey that suggests that Europe’s online retailers should be more worried about lost revenue in the wake of Europe’s incoming PSD2 regulations. 

Specifically, Riskified found that while the vast majority (88 percent) of retailers believe that most consumers are at least somewhat aware of the new regulations, the opposite is closer to the truth. A whopping 76 percent of consumers had never heard of PSD2, with a full 32 percent indicating that they would cancel an online order before going through the multi-factor authentication process required for purchases over €30.

According to Riskified, those numbers should be concerning to retailers that need to convert online shoppers into sales. Unfortunately, only 22 percent of retailers have currently taken steps to address the disparity.

“Some of PSD2’s security requirements could have a detrimental effect on online shopping, leading to unhappy customers and cart abandonment,” said Riskified Co-Founder and CEO Eido Gal.

“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.”

A prior report from Mastercard found that only 28 percent of companies planned to update their technology ahead of last month’s PSD2 deadline, which suggests that many retailers may not be aware of their own obligations under the new system. Biometric authentication is expected to become more popular as retailers search for ways to make checkout less disruptive while still providing Strong Customer Authentication.

The Riskified survey was conducted by Sapio Research, which polled 2,000 consumers and 200 retailers across France, Spain, Germany, and the UK.