Air Europa, a unit of Globalia, has tapped payments and fraud-prevention solutions provider Riskified to maximise revenue under PSD2.
The airline will leverage Riskified PSD2 Optimization, which uses machine learning to grow the percentage of orders going through Transaction Risk Analysis (TRA)- a friction-free verification.
TRA is said to support the prevention of cart abandonment due to Strong Customer Authentication (SCA), which is a requirement under PSD2 and aims to lower the risk of fraud during online transactions.
The Riskified technology is also designed to accumulate data from the company’s merchant network and offer an overview of the performance of issuers and acquirers.
Riskified co-founder and CTO Assaf Feldman said: “By using Riskified PSD2 Optimization, the airline will ensure they maximise their customer experience while complying with the new regulation.
“Our solution allows Air Europa to capture as much revenue as possible under PSD2.”
According to Riskified estimates, European merchants could lose up to 15% of their revenue if they fail to address PSD2 effectively.
Through the Riskified solution, the airline intends to gain £7-£12m of revenue that would have been missed due to cart abandonment owing to SCA.
The latest move builds on Air Europa’s existing relationship with Riskified.
The airline also used Riskified’s chargeback-guarantee fraud-prevention solution, which is said to have lowered chargebacks by 95%.
Air Europa payments & fraud prevention manager Yago Casasnovas said: “PSD2’s consumer protections address a real need in the market, but their implementation is likely to impact the customer experience at all e-commerce sites,” said,
“Riskified PSD2 Optimization enables us to fully comply with the regulation while continuing to provide our customers a safe, satisfying booking experience with minimal friction.”
In August this year, Signifyd launched a set of payment services to comply with PSD2 norms.
Earlier this year, ACI Worldwide rolled out a range of tools to enable payment firms to meet SCA requirements.