Visa & PrivatBank launch verification solution to optimize online payments

By Gloria Methri

Visa has joined forces with Ukraine’s PrivatBank to introduce a new solution, a suite of digital commerce systems performance criteria, that allows merchants to shift liability on qualifying e-commerce transactions.

Dubbed the Digital Authentication Framework or DAF, the solution is designed to ensure e-commerce transactions work as efficiently as an in-store EMV payment.

Ukraine became the first country where the program was launched, marking a turning point for the country’s e-commerce and payment market in general. The first-ever DAF 3DS live transaction occurred on May 26, 2023.

“PrivatBank, where innovation is an important part of our DNA, made the world’s first transaction under the DAF 3DS in Ukraine,” said Mariusz Kaczmarek, Deputy Chairman of the Management Board of PrivatBank for IT & Operations. “Teams of PrivatBank and Visa continue to pursue modern technologies that make digital commerce safer and more convenient for clients even during difficult times of the war. Reduction of fraud followed by convenience for our clients is a part of modern digital solutions by PrivatBank.”

The DAF program offers an upgrade to the Visa Secure program underpinned by 3-D Secure (3DS) technology, which requires a multi-step verification process for the issuer bank to authenticate the customer before an e-comm (card-not-present) transaction may be confidently approved.

However, with DAF, active authentication is only necessary for the first transaction, subsequent transactions are approved seamlessly. This reduces friction for consumers, lowers cart abandonment, and increases conversion rates for merchants.

Matt Charpentier, Visa’s Global head of authentication and identity said, “DAF 3DS is a new program that will further strengthen online payments. This technology balances security and convenience. It reduces the number of instances when clients have to complete authentication verifications while allowing merchants to better control the checkout process and user experience. By introducing DAF 3DS, Visa once again demonstrates its leadership in the payment industry. DAF also works with Visa Token Service as authentication technology, allowing merchants to decide what solutions work best for their needs and use cases.”