Stripe has signed up Wise as the first user of a new biometric delegated authentication feature for strong customer authentication (SCA) transactions.

The new SCA rules mean that online transactions in Europe over a set amount are subject to two-factor authentication checks.

While there is evidence that the new regime is already cutting fraud, Visa estimates that SCA-compliant transactions have suffered an 11% drop in conversion rates due to purchasers needing to shuffle between different apps at checkout.

The Stripe feature enables compliant transactions without shoppers being redirected to a banking app or having to enter a one-time passcode. Instead, they can use any biometric authentication method supported by the device they’re on, without leaving the checkout flow.

Wise is the first card issuer to implement the feature, meaning its customers can use it when authenticating purchases from millions of Stripe businesses, including TikTok, Nando’s, and Deliveroo. SCA-relevant payments have already seen a seven percent lift in conversion.

“Our delegated authentication feature is a powerful lever to increase the payment conversion of merchants on Stripe, which means more money into their topline without asking them to lift a finger. Across all SCA-covered transactions, this could save billions for businesses every year.”

                                                                        Matt Henderson, EMEA business lead, Stripe.