In the “old days” – the days of magnetic stripe cards – a cardholder proved that they were the rightful owner of a card with a handwritten signature at the point of sale. Then came the chip cards, where a PIN number was used for authentication in a card-present context.
In card-not-present situations like online shopping, however, it is much harder to validate a customer’s identity, because they only have to input strings of numbers. To prove that a shopper is the rightful cardholder, another authentication method is required, which often adds friction and frustration to a customer’s online-shopping experience.
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