Stripe Announces the Launch of Delegated Authentication Feature

Stripe, an online payment processing platform, announced that it has launched a delegated authentication feature to improve payment conversion rates in Europe.

Strong Customer Authentication (SCA) is an EU regulation that was fully rolled out this year to reduce payment fraud. Issuers must now use two-factor authentication to prove the purchaser is who they say they are. If fraud occurs, the issuing bank is liable and the business is not exposed.

The new feature enables SCA-compliant transactions without purchasers being redirected to a banking app or having to enter a one-time passcode. Stripe businesses can now have their customers authenticate purchases right inside a checkout flow.

Wise is the first card issuer to implement the feature. As a result, cardholders will no longer be redirected to their Wise app when authenticating purchases from millions of Stripe businesses. Instead, they will be able to use any biometric authentication method supported by the device they're on, without ever leaving the checkout flow.

"We're thrilled that Wise customers are the first to benefit from this new technology. It makes their lives far easier when making online purchases, whether they're ordering a takeaway or shopping via TikTok. We're proud to work with Stripe to solve this complex problem together,"said Erik Kaju, director of platform and spend at Wise.

"Our delegated authentication feature is a powerful lever to increase the payment conversion of merchants on Stripe, which means more money into their topline without asking them to lift a finger. Across all SCA-covered transactions, this could save billions for businesses every year,"said Matt Henderson, EMEA business lead at Stripe.