3DS2 is a protocol introduced by major payment organizations to help consumers authenticate their identity for card transactions that are not physically conducted. This is done by providing an additional layer of security.

Difference between 3DS and new 3DS2

The present 3D Secure 1 protocol has enabled data transfers between payment ecosystem participants in order to authenticate transactions. 3DS2 is the latest version of this authentication protocol. It provides improvements that take into account the regulatory requirements of the European Union SCA and the need to support new payment channels, such as digital wallets and falling conversion rates.

While the workflow in 3DS1 focused mainly on a simple request for authentication data (placing the code on a static website, SMS authentication, etc.), 3DS2 allows for extensive data transfers between merchants, cardholders and their issuers to a much greater extent than ever before, enabling a more accurate authentication. Merchants can verify transactions by communicating with the customer’s card issuer bank. This does not require the customer to remember the PIN code or redirect it to another website. The result is a seamless payment, while only in some cases it may be necessary to use an authentication request to confirm the identity of the user.