How Secure Payment Confirmation (SPC) Improves Security & Conversion Rates

Why It Matters

SPC boosts checkout speed and conversion while preserving security, giving merchants and issuers a competitive edge in the evolving digital payments landscape.

Key Takeaways

• SPC enables passwordless, public‑key authentication for online payments.
• Integrates with 3DS2, allowing seamless browser‑based verification process.
• Cuts authentication time by up to 80% versus SMS OTP.
• Improves conversion rates without compromising issuer security overall.
• Eliminates need for separate devices, enhancing user convenience.

Summary

The video introduces Secure Payment Confirmation (SPC), a W3C‑backed specification that brings passwordless, public‑key authentication to web‑based payments. Leveraging the Fast Identity Online (FIDO) alliance’s standards, SPC operates directly within browsers, eliminating the need for out‑of‑band methods such as SMS one‑time passwords.

Key insights highlight SPC’s integration with the latest 3‑Domain Secure (3DS2) framework, preserving the security guarantees required by issuers while streamlining the checkout flow. Pilot data cited by the presenter shows an 80 % reduction in authentication latency compared with traditional OTP approaches, translating into faster approvals for cardholders.

The speaker emphasizes real‑world benefits: merchants experience higher conversion rates as friction drops, issuers retain confidence that the transaction originates from the legitimate cardholder, and consumers enjoy a seamless experience without extra hardware or apps. Early trials confirm both speed gains and maintained security.

Overall, SPC signals a shift toward frictionless, cryptographically secure e‑commerce, aligning with regulatory trends like PSD3 and the broader push for digital wallets. Adoption could reshape checkout standards, driving revenue growth for merchants and reinforcing trust across the payment ecosystem.

Original Description

Can Secure Payment Confirmation (SPC) make online payments both safer and easier?

At Merchant Payments Ecosystem (MPE) 2024, we spoke with Nakjo Shishkov from Netcetera to explore how Secure Payment Confirmation (SPC) could transform payment authentication.

As online fraud continues to evolve, payment providers, merchants, and regulators face a constant challenge: improving security without creating unnecessary friction for customers.

Topics covered in this interview include:

• Secure Payment Confirmation (SPC) explained

• Payment authentication technology

• 3-D Secure (3DS) and PSD2

• Strong Customer Authentication (SCA)

• Online payment security

• Customer experience and conversion rates

• Merchant benefits of SPC

• Future payment authentication standards

SPC is designed to strengthen authentication while simplifying the customer journey. By reducing friction during the payment process, businesses can improve user experiences while maintaining strong security protections.

The discussion also explores how SPC fits within the broader payments ecosystem, including PSD2 regulations, Strong Customer Authentication requirements, and the ongoing evolution of 3-D Secure (3DS).

Authentication remains one of the most important components of online payment security. However, merchants must balance protection against fraud with the need to maintain smooth and efficient customer experiences.

Discover more from Merchant Payments Ecosystem (MPE) 2024 :

https://ffnews.com/fintech-tv/event/2024/merchant-payments-ecosystem-2024/seamless-security-could-be-achieved-with-spc/

@EmpiriaGroup @gd_netcetera