How to improve payment conversion with delegated authentication

Businesses are increasingly reliant on digital tools for managing operations, which means user authentication has become an essential component of securing their digital assets. However, with the proliferation of multiple systems and applications, managing user authentication has become a complex and time-consuming task.

Delegated authentication offers an effective solution to this challenge by centralizing user authentication across multiple systems or applications. In this article, we’ll explain how delegated authentication works and how it can help your business streamline authentication and improve overall efficiency.

What is delegated authentication?

Delegated authentication is when you allow a third party, known as an identity provider (IdP), to manage the payment authentication process. The IdP verifies the cardholder’s login credentials and can link and recognize their identity across multiple systems, allowing the cardholder to access multiple systems with a single ID.

Building on SSO (single sign-on) techniques, delegated authentication provides a more seamless customer journey and can increase conversion rates for your business.

How does delegated authentication in payments work?

With delegated authentication, your business can accept a user’s login credentials or authentication token, but then pass on the token to an external IdP for validation.

Here’s how delegated authentication works:

1. A user attempts to log in to a system or application that requires authentication.
2. The system or application redirects the user to the IdP for authentication.
3. The IdP verifies the user’s identity using a variety of authentication methods, such as passwords, biometric data, or multi-factor authentication.
4. Once the user’s identity has been verified, the IdP generates a token that contains the user’s identity information and sends it back to the system or application.
5. The system or application uses the token to grant the user access to the requested resource.

Benefits of delegated authentication

For merchants, there are many benefits of using delegated authentication, including…

Improve security

Delegated authentication provides stronger security for your business by utilizing more robust authentication methods, such as 3DS and multi-factor authentication (MFA). MFA requires users to provide multiple pieces of evidence to prove their identity, making it much more difficult for hackers to gain unauthorized access.

Also, delegated authentication centralizes the whole process, which makes it easier for your business to enforce security policies and monitor user activity across multiple systems or applications. This helps to reduce the risk of data breaches and fight off hackers.

Reduce drop-off rates

By simplifying the login process, you can significantly reduce drop-off rates because users only need to enter their login credentials once to access multiple systems or apps. This process eliminates the need for users to create multiple accounts or remember multiple usernames and passwords.

With this streamlined approach, you can reduce the time and effort that users need to access their resources, which can lead to more satisfied customers and increase the likelihood that users will complete the login process.

Increase conversion rates

With a simpler and more convenient login process, users are more likely to finalize the login process and get what they came for. This typically results in higher engagement and increased conversion rates for your business.

Reduce latency

Delegated authentication can reduce the time and effort that users need to access different websites or systems. With a simpler and more convenient login process, they can access these sites more quickly, which reduces latency and increases productivity.

Simplify the user experience

You can provide a seamless and simplified user experience by allowing users to access multiple sites or apps with a single set of login credentials. This eliminates the need for users to remember different usernames and passwords, which can be frustrating and time-consuming.

Delegated authentication also enables single sign-on (SSO), which allows users to log in once and then access multiple systems or applications without having to log in again. This significantly reduces the time and effort required to gain access online, which should lead to higher customer satisfaction and repeat visits for your business.

Less administrative burden

It also removes the need for your business to manage multiple sets of login credentials, which can be a significant administrative burden. With delegated authentication, your business can centralize user authentication and manage user access policies from a single location, which saves time and resources.

Delegated authentication also simplifies the onboarding process for new users, as they only need to be added to the central IdP to gain access. This reduces the time and effort required to set up new user accounts, which streamlines the overall process.

Improve authentication experiences with Checkout.com

With Checkout.com, it couldn’t be easier to reduce friction while guaranteeing secure payments. Our customizable 3D Secure authentication integrates with all your acquirers, making it easier for you to increase revenue, reduce drop-offs, and provide better customer experiences.

Talk to our sales team for more information on how to better fight fraud and remain compliant with our one-stop authentication shop.