Publication Date: March 10, 2020

From February 18 to 20, 2020, the Merchant Payments Ecosystem (MPE) conference took place in Berlin. This was one of the last major in-person events for the fintech industry before the onset of global restrictions.

MPE 2020 drew a line under the key regulatory changes that have been in focus in recent years.

🔑 Final Stage of SCA and 3DS2

The main topic of the conference was the impending full-scale implementation of Strong Customer Authentication (SCA) within PSD2.

• Paysto and 3DS2: We discussed with partners and regulators successful strategies for migrating to the 3D Secure 2.0 (3DS2) protocol, which enables authentication without breaking conversion (seamless authentication).
• Exemptions: Special attention was paid to the use of SCA exemptions (e.g., for low-risk or recurring payments) to minimize friction in the payment process and prevent a drop in merchant conversion.

🚨 Fraud in the E-commerce Era

As more and more purchases move online, the sophistication of fraud also grows.

• Risks without SCA: Strategies for combating fraud were discussed in jurisdictions and for payment types where SCA is not applied.
• Artificial Intelligence: The conference presented new generations of fraud-fighting systems based on machine learning and AI, capable of analyzing thousands of transaction parameters in real time.

The Paysto team returned from MPE 2020, convinced that our technological base is ready for new challenges—from strict adherence to SCA to the need for continuous implementation of intelligent tools for combating fraud. A deep understanding of these trends allows us to maintain the high reliability and competitiveness of our payment solutions.