Aite Group surveyed 1,400 consumers in the U.K., the U.S., and Singapore in July 2018 to better understand their attitudes toward the impact of fraud and authentication on the customer experience. This Impact Report, sponsored by iovation, a TransUnion Company, provides insights into consumers’ views on authentication.

Consumers often don’t understand the mechanics of technologies very well, or even why they’re being used, but they have definite preferences about how and when they want to engage in authentication activities.

Many financial institutions (FIs) and merchants are actively working to optimize a seamless user experience while stemming the rising volume of fraud attacks and losses. Concurrently, however, authentication as a mandated requirement is gradually increasing around the globe. This emerging paradox means that understanding the right time and way to insert authentication will be essential to maximizing transaction completion.

When consumers were asked about their preference of authentication methods, familiarity and comfort level played big roles. Username/password received high marks among consumers in all three survey countries, although across the board, the fingerprint biometric has the confidence of the largest proportion of consumers across all age groups in terms of security and effectiveness.

Register for the complimentary report to learn:

  • The differences that emerge when analyzing the data by the frequency with which the consumer shops online
  • What percent of frequent e-commerce shoppers prefer username/password as their primary authenticator
  • What percent of moderate online shoppers and infrequent e-commerce shoppers prefer username/password as their primary authenticator
  • Which category of shoppers are much more likely to prefer behind-the-scenes technologies

Authentication is moving toward a continuum rather than a one-time event, in which a layered fabric of technologies can be used to securely authenticate the consumer and insert friction where needed. Merchants and issuers that don’t invest in technologies that can facilitate this will be left behind. Customer education and active engagement strategies will also be critical to optimizing user experience and maximizing transaction completion.