Indian aggregator PayU to offer 3DS2 SDK for all domestic and international transactions to resolve security and speed in payments. 

Online payment service provider PayU is launching a 3DS2 software development kit (SDK) for merchants of its platform to authenticate payments in line with the Indian security mandate arriving in October 2023.

India’s appetite for e-commerce is expected to be worth around $200billion by 2026 as the market continues on a sharp upward trajectory. But, as expected from such valuable, large figures, the opportunities for fraud to occur are equally as large. Last year, financial fraud cost the Indian banking industry INR 6,500 crore.

Visa created 3D secure, also known as ‘three domain secure,’ in 1999 to enable banks and merchants to authenticate cardholders’ identities with the rise of e-commerce.

The application of two-factor authentication imposed by the protocol creates an identity chain between the issuing bank, customer and merchant at the point of checkout, and ultimately ensures both the speed and security of online card payments.

3D secure came into being when the computer desktop was the only way to access the digital marketplace. Since its official introduction in 2020, 3DS2 has aimed to deliver enhanced functionality across all devices. It incorporates updates that were first required by PSD2 and strong customer authentication (SCA) regulations in Europe.

Globally, 3DS2 authentication has reduced fraud by 57 per cent and decreased abandonment rates by 70 per cent.

A focus for merchants

PayU’s launch of 3DS2 SDK will enable merchants with a higher level of security across domestic and international transactions with the offering being developed through the company’s collaboration with the full-stack payment technology company Wibmo.

Commenting on this development, Manas Mishra, chief product officer at PayU payments, described it as “part of our ongoing commitment to offering a faster and safer digital payments infrastructure for our merchants.”

“With this,” continues Mishra, “we are helping businesses provide customers with best-in-class user experience, and better success rates while supporting security authentication for all card use cases.”

This announcement confirms PayU’s ongoing exploration of security infrastructure and its attempt to identify the most secure avenue of processing payments for merchants in India.