There remains a marked disparity between retailers’ and online shoppers’ PSD2 awareness.

Nine out of ten (88%) European retailers believe consumers are aware of the regulation. But more than three quarters (76%) of consumers say they are unaware of the regulation.

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The figures are disclosed by a report from e-commerce solution provider, Riskified.

The regulation affects most online transactions for transactions over €30. Consumers will need to undergo multi-factor authentication to verify their identity. This includes entering a code received via their mobile phone or providing biometric data such as a fingerprint.

According to Riskified’s report, the message is not getting through to consumers.

Other report findings include:

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  • One-third (32%) of European consumers say they would rather cancel their online purchase and go elsewhere than go through the verification measures PSD2 will require for some transactions, and
  • 22% of retailers are yet to take any steps to minimise the negative impact of PSD2 on their revenues

The survey covers 2,000 consumers and 200 retailers, evenly split across the UK, Germany, France, and Spain.

PSD2 awareness: 1 in 3 online purchases at risk

In the UK specifically, the report claims:

  • 74% of consumers have not heard of PSD2;
  • Nine out of ten (92%) retailers think their online customers are ‘somewhat’ or ‘very aware’ of the legislation;
  • One in three (33%) consumers said they would cancel their online purchase and go elsewhere if presented with PSD2’s identity verification requirements, and
  • 18% of retailers have not taken any steps to minimise the negative impact of PSD2 on their online sales

Eido Gal, Co-Founder and CEO, Riskified, says: “Fraud is a major concern in eCommerce. We’re always in favour of better security, but it shouldn’t have to be a trade-off with the customer experience.

“Unfortunately, some of PSD2’s security requirements could have a detrimental effect on online shopping. This will lead to unhappy customers and cart abandonment.”