Spreedly announced Tuesday (Dec. 8) in a blog post that clients can now harness the company’s payments orchestration platform as a single way to handle their Strong Customer Authentication (SCA) requirements amid the approaching end-of-the-year deadline for 3D Secure 2.0 (3DS2) compliance.
3DS2 serves as a multi-factor authentication approach that is harnessed to confirm digital identity at checkout. Users have to offer something they have, something they know or something they are beyond their primary account number (PAN) to prove they legitimately own an account in a card-not-present (CNP) transaction under the 3DS2 protocol.
3DS2, which is broadly anticipated to be a worldwide requirement on every transaction at some point, harnesses 10 times the amount of information as the first version.
Spreedly’s 3DS2 offering takes in and transmits cardholder information to its 3DS2 server to conduct transaction risk analysis and heighten the cardholder’s probability of a frictionless checkout experience, according to the post. It also includes EMVCo-certified iOS and Android software development kits (SDKs) to fuel a lightweight 3DS2 method in native mobile apps.
The output of authentication can be sent to any gateway that works with the Spreedly infrastructure, the post stated. Furthermore, retailers only have to register a single time with the 3DS2 offering of Spreedly instead of signing up separately for a 3DS2 offering from every gateway.
“Spreedly’s 3DS2 platform reduces the complexity of implementing 3DS2 across multiple gateways with a single, unified payments orchestration layer,” Spreedly Director of Product Management Lee Jacobs said in the post. “That reduces complications for payments teams, cuts maintenance costs, and delivers a superior checkout experience for consumers.”
Using a payments orchestration layer can also help companies increase their bargaining powers. Application programming interface (API) technology lets companies integrate different payment gateways into their systems at one time. As a result, they are not restricted to a particular gateway at the exclusion of others.
This move can provide operational flexibility, letting companies direct transactions in the most expedient and cost-effective way. Furthermore, access to multiple payment gateways can provide companies with an advantage when it comes to negotiating payment terms with their suppliers and resultantly decrease the expense of processing payments.