Stripe launches service to delegate online payment authentication with device biometrics
Stripe is moving further into user authentication with a new delegation feature for consumer payments, allowing end-users to make use of any biometric authentication method supported by their device within the checkout flow.
The payments company says the service uses device biometrics to meet the strong customer authentication (SCA) requirements stipulated by the EU’s PSD2 regulation.
Wise is the first payment card issuer to implement Stripe’s delegated authentication, allowing Wise cardholders to complete authentication without being redirected to the Wise app. Early adopters, including TikTok, Nando’s and Deliveroo, have had much higher conversion rates for purchases with Wise cards and delegated authentication, according to the announcement, and Stripe says the process is four times faster than legacy methods.
Stripe cites a Visa study that suggests conversion rates have fallen 11 percent due to the need to go through multiple apps or enter one-time passwords during checkout processes.
“Every pound and euro counts, and Stripe is intensely focused on maximizing revenue for our users. Our delegated authentication feature is a powerful lever to increase the payment conversion of merchants on Stripe, which means more money into their topline without asking them to lift a finger. Across all SCA-covered transactions, this could save billions for businesses every year,” says Matt Henderson, EMEA business lead at Stripe.
Stripe’s delegation works by taking responsibility for transaction authentication over from the card issuer, dynamically selecting two-factor authentication methods based on the user’s preferences and their device’s biometric capabilities.
The online payments firm provides identity verification technology to digital signature provider Annature, which recently announced a major sales increase. Stripe Identity was launched to enable KYC checks with selfie biometrics last year.