Stripe acquires Touchtech Payments to prepare for SCA in Europe

Will Gaybrick, Stripe’s CPO

US-based payments infrastructure company Stripe has acquired a Dublin-based tech company called Touchtech Payments. It has also introduced a series of updates to its product stack for its businesses across Europe. Stripe’s new products are aimed at assisting merchants to implement SCA-ready authentication methods to their checkout page and dynamically trigger SCA when required.

Strong Customer Authentication (SCA) is a new European regulatory requirement to reduce fraud and make online payments more secure. Once SCA goes into effect, additional authentication like Password/Pin, Phone or hardware token and/or fingerprint and face recognition will be required into the checkout flow.

“SCA is a ticking time bomb for the European payments industry. Merchants must deal with a complex set of changes to the payment flow that can have a disruptive impact on the customer experience. Yet, awareness among merchants is low,” said Ron van Wezel, Senior analyst at Aite Group. “Payment service providers are at a turning point. SCA is simply too complex for any merchant to manage on its own, including for large online businesses. Payments providers who can abstract away SCA complexity will have a significant advantage over their competitors.”

Touchtech Payments, Stripe’s recent acquisition, provides SCA ready authentication technology and aims to offer better payment experiences for its customers with due importance to security and user experience.

“On the modern internet, payments should be everything you’d expect: easy, secure, and fully compliant with the latest regulations. Unfortunately, these three attributes are often at odds with one another, making it nearly impossible for an individual business to keep pace with regulatory changes and build a great payments product experience for their customers,” said Will Gaybrick, Stripe’s Chief Product Officer. “Touchtech adds yet another layer to the economic infrastructure Stripe is building for the internet, which is designed to help businesses comply not only with SCA but also with the entire next generation of regional payment regulations.”

In addition, Stripe will be launching SCA guides, SCA-ready payments flow designs and much more to help merchants navigate through the complexity of SCA.

Related Posts