Riskified partners with Axerve to aid in SCA compliance

Fraud management platform Riskified has revealed a new partnership with Axerve allowing for its machine learning solutions to be used by the Italian payment hub’s clients.

The partnership includes Riskified’s PSD2 Optimize solution, which aims to help brands navigate the European Union’s (EU) Payment Services Directive (PSD2), a revised European law that looks to regulate payment services in the market.

According to Riskified, since compliance with PSD2 regulations, Strong Customer Authentication (SCA) requirements have become more complex for merchants.

In response, the platform’s PSD2 solution intends to help merchants tackle this complexity through leveraging Transaction Risk Analysis (TRA) exemptions, enabling low-risk orders and legitimate users to access “seamless and secure” payment experiences.

Axerve’s first client to use the feature, beauty retailer Kiko Milano, said it saw an exemption of nearly 99 percent of orders from SCA using TRA, and a further 10 percent increase in approval rates for transactions, according to a press release.

“When PSD2 went live, Axerve notified us that our denied transactions rate was quickly increasing, and our customer care team also alerted us that the number of tickets opened by customers was multiplying four-fold,” said Diego Morgandi, e-commerce director at Kiko.

Morgandi continued: “The benefits from PSD2 Optimize were immediate. We saw a reduction in failed transactions that drove the approval rate up and allowed us to grant our customers a real frictionless checkout experience. This partnership is key for us to succeed.”