FIDO White Paper SCA Delegation to Merchants Or Wallet
FIDO Alliance White Paper: FIDO for SCA Delegation to Merchants or Wallet Providers March 2021 Editors: Jonathan Grossar, Mastercard Alain Martin, Thales Melanie Maier, Entersekt Bernard Joly, OneSpan Felix Magedanz, Hanko Arshad Noor, StrongKey © 2021 FIDO Alliance. All rights reserved. FIDO for SCA Delegation to Merchants or Wallet Providers Abstract The authentication of consumers during remote transactions has undeniable benefits in terms of security and approval rates but raises concerns of transactions being abandoned by consumers, as those consumers are not always able to authenticate properly to their banks. Merchants and wallet providers have an existing relationship with consumers, and there is an opportunity to leverage authentication mechanisms established during that relationship to authenticate to remote transactions as a delegation of the bank’s authentication. This white paper reviews the different authentication mechanisms that can be used by merchants or wallet providers in the context of Strong Customer Authentication (SCA) Delegation and explains why FIDO is best positioned to meet the requirements from regulatory authorities, banks, merchants, or wallet providers. FIDO is an industry standard designed to authenticate consumers with a high level of security and privacy but with minimal friction, and the implementation of FIDO standards is scalable across multiple consumer devices and platforms, making FIDO the recommended solution for SCA Delegation. Audience This paper is intended for: • Merchants, Payment Service Providers, and wallet providers interested in implementing a FIDO solution to authenticate consumers as a delegation of a bank’s authentication. • Banks interested in understanding the benefits of FIDO in SCA Delegation, including how the implementation of FIDO meets their requirements.
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