3DS comes with the promise of making online transactions more secure and reducing fraud rates in the EU. 3DS authorises card payments by collecting user-verifiable information. Its predecessor (3DS 1.0), was not widely adopted due to lack of mobile-friendliness and poor user experience, resulting in low approval rates for transactions. 


However, 3DS 2.0 improved upon its predecessor (3DS 1.0) by making authentication more flexible and secure. Once 3DS 2.0 is rolled out, it is estimated that it would reduce fraudulent transactions to 0.05%.


Online fraud is an ever-growing problem and a threat to SaaS & E-commerce businesses worldwide. Here are some statistics from the year 2016 to help us understand the immensity of the problem.

  1. There were 27 attacks for every 1,000 transactions conducted in 2015 Q4; A 11% increase from the stats of 2015 Q3, and a 215% increase from 2015 Q1. 

  2. The attack rate more than quadrupled for digital goods, and nearly doubled for luxury goods, between Q4 of 2015 and Q1 of 2016.

  3. $4.79 out of every $100 of sales are at risk, up to $2.90 (150%) out of $100 from 2015 Q1.


Source: PYMNTS.com