Largest-ever global study on 3-D Secure surveying more than 750 merchants highlights winning strategy for achieving 85%+ authorization rates

Bedford, MA – October 21, 2021 – Outseer, the leader in payment authentication and monitoring solutions, announces the availability of new global research conducted by the Aite-Novarica Group focused on 3-D Secure adoption and usage. Through this largest-ever study dedicated to 3-D Secure technology, Aite-Novarica confirmed the standard is widely deployed across card issuers and merchants globally and is used as a key technology to fight card-not-present (CNP), digital payments fraud. 3-D Secure is a global payments authentication standard developed and managed by EMVCo.

CNP payments fraud, including purchases made via mobile apps and devices, account for more than half of all gross fraud losses. According to the research, total global CNP fraud losses will eclipse $17.2 billion by 2023, while global eCommerce spending is expected to grow to $5.9T during the same period. This global study demonstrates that as digital commerce and new payment models scale, 3-D Secure is an effective strategy to balance managing risk while maintaining a seamless experience for customers.

The Aite-Novarica Group research provides in-depth insights into both issuer and merchant attitudes toward the usage of 3-D Secure as an effective technology for fighting CNP fraud. Key findings from the global study include:

  • Card Issuers, Issuer Processors, and Merchants worldwide are actively using 3-D Secure: 100% of the issuers and issuer processors interviewed are currently using 3-D Secure. Most issuers also report that their 3-D Secure transaction volumes are increasing, primarily due to the growth in CNP payment volume and strong customer authentication (SCA) mandates, as 3-D Secure can be used to meet PSD2 SCA regulation requirements.
  • Merchant deployment of 3-D Secure is also strong across all regions: According to the research, among the available solutions merchants use to fight CNP fraud, “3-D Secure leads the pack.” Of the 756 merchants surveyed globally, 69% said they are currently using 3-D Secure. Specifically for merchants surveyed from Asia Pacific, 81% said they are using 3-D Secure; this is significantly more than any other fraud detection tool.
  • 3-D Secure is seen to be as effective or more effective when compared to other fraud detection solutions: According to the study, 82% of issuers and issuer processors interviewed said that 3-D Secure is as effective or more effective for fraud detection as compared to other fraud solutions. This figure rises to “100% of issuers” in regions such as Europe and parts of Asia Pacific, where SCA mandates have helped accelerate adoption and 3-D Secure is used for the majority of CNP transactions.
  • In every region, significantly more merchants said they achieve 85% or higher Authorization Rates when transactions go through 3-D Secure: Driving up CNP authorization rates is a key goal for merchants and issuers to grow their business. In the research, Aite-Novarica found that when 3-D Secure is used to protect CNP payment transactions, more merchants achieve higher CNP transaction authorization rates versus those transactions that do not go through 3-D Secure.

“One of the clear take-aways from this study is when you have both sides of the equation, both the issuers and merchants equitably participating in 3-D Secure it’s a great experience for everybody,” said Julie Conroy, Head of Risk Insights & Advisory at the Aite-Novarica Group. “Take Europe as an example, where you have the majority of your CNP volume going through 3-D Secure rails, overall net fraud is down, net 3-D Secure fraud rates are even lower and customer attrition is lower.”

A key recommendation from the study highlights the importance of “collaboration via 3-D Secure.” “When the full spectrum of transactions are sent through 3-D secure, all parties benefit from greater precision detection and the improved ability to distinguish genuine from fraudulent users,” said Jim Ducharme, COO at Outseer. “This translates into higher authorization rates, frictionless shopping experience, increased revenue, and greater overall profit potential.”

Additional insights from the research include:

  • Global CNP fraud losses grew 29% year over year from 2019 to 2020
  • 100% of the issuers and issuer processors interviewed said they will have the ability to support the latest version of the 3-D Secure protocol (3DS2) by the end of 2021
  • 79% of merchants who currently use 3-D Secure said they expect to increase usage over the next two years, citing increasing CNP transaction volumes (80%) and rising CNP fraud attacks (70%)
  • Of the 31% of merchants not using 3DS today, two-thirds overall, and 73% of those in unregulated countries, cite plans to support 3-D Secure within 12 months

To download a copy of the full Aite-Novarica Group: “Maximizing the Potential of CNP” report, please visit:

Learn more about the study findings and the benefits of using 3-D Secure to protect against CNP fraud:

About the Study

Aite-Novarica Group’s research, sponsored by Outseer, an RSA company, was conducted in Q2 and Q3 of 2021. The study consisted of in-depth interviews with card issuers and issuer processors, and a quantitative survey of 756 merchants, equally distributed across North America, Europe and Asia Pacific regions. Statistical tests were conducted at the 95% confidence level, with 4-point margin of error.

About Outseer

Outseer, an RSA company, empowers the digital economy to grow by authenticating billions of transactions annually. Our payment and account monitoring solutions increase revenue and reduce customer friction for card issuing banks, payment processors, and merchants worldwide. Leveraging 20 billion annual transactions from 6,000 global institutions contributing to the Outseer Global Data Network, our identity-based science delivers the highest fraud detection rates and lowest customer intervention in the industry. See what others can’t at

About Aite-Novarica Group

Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.

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