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Stripe launches delegated authentication to speed up Euro purchases

Ryan Lawler
Jun 6, 2022
Illustration of a phone with a mobile payment icon on the screen, unzipping to show cards and money inside.
Illustration: Gabriella Turrisi/Axios

Stripe added new tools to its payments toolbox in Europe on Monday, launching a new delegated authentication feature that supports biometric verification methods directly in the customer checkout flow.

Why it matters: The feature could reduce friction and improve conversion while also complying with the EU’s Strong Customer Authentication (SCA) regulation, which requires two-factor authentication for credit card payments to reduce fraud.

How it works: By embedding biometric authentication into a merchant checkout page, card issuers pass (or delegate) the responsibility for authenticating transactions to Stripe.

  • Stripe then handles the SCA requirements by leveraging biometric verification methods like Face ID or Touch ID on an end-user’s device.
  • That means cardholders will no longer be redirected to their bank or credit card provider when using a supporting device.

Yes, but: For now, the feature is mostly useful for mobile transactions, which still account for a relatively small portion of online purchases but are growing fast.

Of note: Wise — the company formerly known as Transferwise — is the first partner to implement the delegated authentication feature.

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