New Regulation Threatens Online Shopping Experience

  • One-third of European consumers would abandon purchases due to new PSD2 verification measures
  • 88% of retailers believe consumers are aware of PSD2
  • 76% of consumers haven’t heard of PSD2
  • PSD2 adds security measures for online transactions over €30
  • Multi-factor authentication required for verification
  • UK research reveals concerns about customer experience and revenue loss

A recent study by e-commerce solution provider Riskified found that 32% of European consumers would cancel their online purchases rather than go through the new verification measures required by PSD2. The regulation aims to enhance security for transactions over €30, but may negatively impact customer experience and lead to cart abandonment. Despite 88% of retailers acknowledging consumer awareness of PSD2, 76% of consumers remain unaware of it. Multi-factor authentication, such as mobile codes or biometric data, will be required for verification. UK research highlights the potential risk to merchants’ revenue and customer satisfaction.

Factuality Level: 7
Factuality Justification: The article provides accurate information about the study conducted by Riskified on consumer and retailer opinions regarding PSD2 and its potential impact on online shopping experience. It also includes a quote from Eido Gal, co-founder and CEO of Riskified, which adds credibility to the topic.
Noise Level: 3
Noise Justification: The article provides relevant information about consumer attitudes towards PSD2 and its potential impact on online shopping, but it could benefit from more in-depth analysis of the reasons behind these attitudes and potential solutions for merchants to balance security and customer experience.
Financial Relevance: Yes
Financial Markets Impacted: Retailers and e-commerce companies
Financial Rating Justification: The article discusses the impact of PSD2 regulation on consumer behavior and its potential effect on online shopping, which can affect retailers and e-commerce companies’ revenue.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk