EU Security Rules Cause Fear Among Payment Firms
A lack of preparedness for the EU's new regulations on authentication could cost Europe's online economy more than €50bn
A lack of preparedness for the EU's new regulations on authentication could cost Europe's online economy more than €50bn according to a number of payment processors and e-commerce merchants.
A research study published by Stripe showed that only half of the businesses involved in the study expected to be compliant with the Strong Customer Authentication (SCA) rules of the EU, which will come into action in early September.
Surprisingly, most of the firms interviewed were not even aware of the SCA rules. For the businesses who are aware, there is a misunderstanding on the complexity of the rules and how the exemptions work.
The study also suggested that the lack of readiness among smaller businesses is disproportionately higher than larger businesses. 60% of the companies with 100 or less employees were unaware of the SCA rules, and hence are unlikely to be compliant by the implementation date.
The security rules are expected to cause major disruption to European Digital Commerce, and will significantly affect small businesses.