UK ecommerce MFA rules take effect as biometrics providers win fintech clients
The rules around online transactions continue to tighten, with the UK requiring stronger authentication through factors including face and fingerprint biometrics for internet purchases. Three biometric solutions providers, meanwhile, have entered new fintech-focused partnerships, with Trust Stamp joining forces with Viva Finance, Onfido with Wallester AS, and FacePhi adding Hites to its client roster.
Strong Customer Authentication (SCA) rules requiring either a possession-based factor or a biometric authentication factor for online purchases in the UK have gone into effect, The Guardian reports.
The change was made in an attempt to reduce the £376 million (US$489.5 million) in losses to online fraud reported in 2020, and brings the process for online purchases closer to that of opening a bank account.
The new rule does not apply to “low risk” transactions like inexpensive purchases or prescription refills. Mastercard says about 25 percent of online purchases will need a second authentication factor.
Research from the financial industry shows an increase in declined transactions as payment card issuers began to implement the changes, but a representative of the British Retail Consortium says consumers can be assured that online shopping “has never been safer.” Trust Stamp enters collaboration with Viva Finance
The move will see Trust Stamp provide Viva Finance with its biometric verification, document validation and data protection services.
The solutions will be integrated within Viva’s platform, which aims to provide individuals with thin credit histories to establish a framework for long-term financial health.
The company does so by enabling access to affordable credit with loans underwritten by employment history as opposed to credit score.“We are thrilled to partner with Trust Stamp to further our mission of building an inclusive financial system,” comments Viva’s CEO Jack Markwalter.“This partnership will allow us to prevent would-be identity thieves from using our application, while not adversely affecting honest people who may […]
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