The ThreatMetrix® suggests that if an authentication method is made non-intrusive, then it can boost online revenues by 2 to 5 percent. This is a welcome thing for businesses across globe as hyper-competition has eaten up substantial profit pie for almost every industry. But the question is, will customers and merchants go for such authentication to favor customer experience? Probably, yes. The world is preparing itself for frictionless authentication.
- Attempts are being made
- How do you carry the same experience online?
Money is a serious issue for regulators and they are imposing strict rules for authentication. Before transaction happens, governments and merchants wants to be sure that you are who you claim to be. The proven method for strict customer authentication is making two of these three things mandatory before transaction happens – (a) Knowledge – Password or PIN (b) Possession – card or token or authentication device (c) Inherence – fingerprint or voice recognition or iris scan. But having this in the way of checkout is going to make the processes longer, slower and less enjoying. In short, compliance is going to impact the convenience.
- Transaction risk level and profile trust value
Low-risk transactions from high-trust profiles can be authenticated without further action and high-risk transactions from low-trust profiles would need through evaluation of identity.
- Risk rate parameters on merchant side
- Behavioral biometric on user side
To summarize, frictionless authentication is not a fancy term anymore. Efforts are being made from all sides to make customer journey more enjoyable and secure at the same time.