Amex upgrades SafeKey authentication tool (AXP)

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American ExpressannouncedSafeKey 2.0, the second generation of its online authentication tool, which leverages the EMV 3-D Secure 2.0 industry standard to provide an extra layer of security when an Amex cardholder makes a purchase online or in-app through a smartphone or connected device.

Upgrades to the system allow SafeKey 2.0 to detect potential fraud in real time and support biometric authentication methods, including fingerprints and facial recognition, which can help keep security high while limiting friction. The solution — which will also be available in the EU — will launch to merchants, issuers, and borrowers next year. Amex will continue to support firms that currently use SafeKey 1.0.



As fraud remains prevalent, it’s imperative for firms to invest in fraud protection offerings to ensure the safety of consumer data.

• With breaches at an all-time high, security has become a top priority.A record-breaking 15.4 million US consumers were affected by identity fraud in 2016, marking a 16% annual increase, according to Javelin. And the implications of a data breach are drastic for merchants specifically — 19% of consumers would stop shopping at a breached retailer, and 33% would take a long-term break. With massive data breaches likeEquifax hindering consumer trust, it’s in the best interest of firms across the board to build up security offerings to ensure secure transactions.
• E-commerce channels are especially prone to fraud attempts.E-commerce retailers saw their attempted monthly fraud rates rise above 40% in 2017 — nearly three times more than physical sellers. That’s likely because while in-store payments became safer, e-commerce popularity also skyrocketed, making it an opportune weak channel for fraudsters to target. To combat this, merchants and financial services providers are investing in more multilayered products, including better customer authentication through tools like biometrics. As consumers become more familiar with biometrics and get accustomed to using them for things like identity verification, providers might be more willing to implement them, which could benefit SafeKey adoption.

Dan Van Dyke, senior research analyst for BI Intelligence, Business Insider’s premium research service has written a detailed report that explores the digital payments ecosystem today, its growth drivers, and where the industry is headed. The report also:

• Traces the path of an in-store card payment from processing to settlement across the key stakeholders.
• Forecasts growth and defines drivers for key digital payment types through 2021.
• Highlights five trends that are changing payments, looking at how disparate factors, such as surprise elections and fraud surges, are sparking change across the ecosystem.

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