Ever wondered how secure your online payments really are? E-commerce has been a game-changer in how we purchase goods and services. But let’s face it, the convenience often makes us overlook security. In the ever-expanding world of digital transactions, Secure Payment Confirmation (SPC) is one of the latest developments aimed at making online payments safer.
But before we delve into SPC, why do we even need SPC when secure options already exist? Take Apple Pay, the gold standard for payment apps, which can be used anywhere that accepts contactless payments—from vending machines and retail stores to taxi cabs and subway stations. Then there is 3D Secure which adds an extra layer of protection by asking you to validate transactions via an OTP received on your phone, or a username and password.
Let’s not forget online payments veteran, PayPal, that allows users to send payments without directly exposing their bank details to the merchant, making it popular for all sorts of transactions, whether it’s for completing B2B or B2C purchases, enjoying a spot of betting on PayPal gambling sites or online shopping.
So, what is SPC, and why should you, as a consumer, care?
Understanding Secure Payment Confirmation: An Overview
Secure Payment Confirmation is an API that aims to heighten the security of online transactions. The Web Payments Working Group began developing SPC in 2019 to help fulfil Strong Customer Authentication (SCA) requirements with low checkout friction.
SPC is built on top of Web Authentication (WebAuth) and is supported by both EMV 3-D Secure (version 2.3) and EMV Secure Remote Commerce (version 1.3). Utilizing biometric verification like fingerprints or facial recognition, SPC provides a multi-layered security framework that goes beyond mere passwords.
But here’s the kicker—does this new layer actually make things safer? Absolutely. The technology combines hardware-based authentication with the trusted execution environment of your device, making it exponentially more challenging for cybercriminals to interfere.
Explaining How SPC Works With An Example
SPC begins with a two-step process. The first is registration where the payer links their device to a relying party (RP) like their credit card issuer, bank or other payment service provider. Registration only needs to take place the very first time that the consumer agrees to enable SPC.
The next step is authentication where the payer uses the registered device to confirm their identity with the RP directly from the merchant’s platform before confirming payments.
Let’s simplify Secure Payment Confirmation with a real-world example, shall we? Imagine you’re online, doing some late-night shopping for a new pair of sneakers. You’ve found the perfect pair, added them to your cart, and now you’re at the checkout page, ready to make a payment.
In the typical scenario, you’d enter your card details and maybe a One-Time Password (OTP) sent to your mobile phone. But if the website uses SPC, here’s what happens instead:
- Biometric Prompt: After you’ve entered your card details, a prompt appears on your device asking for biometric verification. This could be your fingerprint, face ID, or even voice recognition, depending on your device’s capabilities.
- Instant Verification: You touch your fingerprint sensor or look into your camera for face recognition. Your device quickly matches this with the stored biometric data it already has.
- Completion: Once your identity is confirmed, the payment goes through, and voila! Your sneakers are on the way, and you didn’t have to fumble with passwords or OTPs.
The magic here lies in the fact that the biometric data never leaves your device. It’s used merely as a final ‘yes, it’s really me’ confirmation before your payment is processed.
So, in layman’s terms, SPC adds an extra, super-secure step to your online checkouts. It’s like having a digital bouncer who recognizes you instantly and only lets you in—making sure your online shopping experience is both secure and hassle-free.
The Consumer Experience: Convenience Meets Security
What does this mean for you? Think about it. Faster checkouts, no redirects, and a high level of security. How often have you abandoned a shopping cart because the payment process was too cumbersome or the site redirected you one too many times? SPC solves this conundrum by keeping the transaction flow seamless while adding a robust layer of security.
Downsides & Considerations
Is it all sunshine and rainbows? Not necessarily. For starters, SPC relies heavily on device compatibility. Your phone, laptop or tablet needs to have the necessary biometric hardware. Moreover, if you’re not comfortable with biometric data storage, this might raise some privacy concerns. But, here’s something to ponder—aren’t these trade-offs worth your peace of mind and financial safety?
Here are the disadvantages of SCP, in case you’re wondering:
- Limited Device Compatibility: SPC relies heavily on biometric verification, which means it may not be compatible with older devices lacking these features.
- Merchant Adoption: As a newer technology, SPC is not yet universally accepted by all online merchants, limiting its immediate usability for consumers.
- User Learning Curve: Though designed for simplicity, SPC’s advanced security measures might initially confuse some users who are accustomed to traditional payment methods.
- Dependence on Hardware: Since SPC often relies on device-specific hardware like fingerprint scanners or face recognition cameras, a malfunctioning device could impede payment processes.
- Lack of Dispute Resolution: Unlike some payment platforms like PayPal, SPC doesn’t offer a built-in dispute resolution centre, leaving consumers reliant on the dispute policies of their individual banks.
In Parting
When it comes to payment security, one size does not fit all. Depending on your preferences—whether it’s the desire for a seamless user experience or a need for multiple security layers—online payment options each have their own merits.
So, are the current options better than SPC? Opinions will vary depending on whether you ask a customer or a business. But one thing’s certain: we’re living in an era where online payment security has become a cornerstone, not an afterthought. Isn’t it good to know we’ve got more choices?
