Reģionāla Investīciju Banka launches frictionless authentication for online purchases


On the 16th of March this year, Reģionāla Investīciju Banka has launched a modern, risk-based, strong customer authentication solution for its cardholders who are shopping online at various e-commerce merchants globally. 

The solution is based on EMV 3-D Secure protocol version 2 and complies with the SCA requirements of the PSD2 directive. From now on, Reģionāla Investīciju Banka will be able to minimize checkout friction for its cardholders, dynamically challenging customers with additional authentication only in specific situations. 

“One of the key aspects of Gate2Bank 3-D Secure solution is flexible interaction with the end-user, both browser-based and in-application based, that allows us to use capabilities of the new 3-D Secure protocol to the maximum. Merchants that operate with a “mobile-first” approach are especially enthusiastic about it because now they can create a seamless experience for their customers by authenticating them directly in their mobile store applications, without having to redirect them to any third-party webpages. More customers are completing their checkouts to the end and are not spooked by redirects to unknown browser pages. It also happens much faster now. We are well pleased with the solution and how it makes the shopping experience online better for our cardholders!” – Alexander Smelov, Head of Payment Cards at Reģionāla Investīciju Banka comments. 

Speaking of better checkout rates, recent research, conducted by Visa, concludes that the use of EMV 3-D Secure protocol version 2 for dynamic, risk-based authentication will improve the speed of processing online transactions by 85% and reduce cart abandonment rate by 70%. In a highly competitive and constantly evolving industry of digital payments, small improvements like this can have a big impact on the overall satisfaction of customers and their decision to continue using services from the same bank in the future!

D8 Corporation has built this solution for Reģionāla Investīciju Banka, using one of the newest developments – Gate2Bank 3-D Secure. Gate2Bank 3-D Secure consists of issuer (EMV ACS) and acquirer (3DS Gateway) modules that harness the full potential of the EMV 3-D Secure protocol version 2. 

On the acquiring side, data processing and authentication initiation can now happen seamlessly from multiple channels and devices with their different form factors. On the issuing side, issuers now have control over which transactions to challenge with additional authentication, by using risk-based evaluation mechanisms that evaluate the various transaction, user, and device parameters in real-time and based on the evaluation results either challenge the transaction or allow it to commence right away, without authentication. 

“Strong Customer Authentication (SCA) options in those rare cases when a transaction needs to be challenged for us was also a significant factor when choosing a 3-D secure solution. Gate2Bank 3-D Secure supports many authentication factors, including Out-of-Band and biometry. It allows us to employ authentication solutions and methods that we already have in place throughout our organization for 3-D Secure as well, not making any changes to our existing configurations. A lot of our banking app users prefer biometry as their primary method of authentication, and we are happy to oblige them. But it is not limited only to biometric data, collected by phone – IVR or any other system that collects and stores customer biometric data can be connected to Gate2Bank 3-D Secure, thanks to the flexible APIs that are included in the solution package.” – Alexander Smelov, Head of Payment Cards at Reģionāla Investīciju Banka adds.