As the holiday shopping season looms, Ravelin is warning retailers they could lose millions in sales this Black Friday as frictionless payment approvals tumble worldwide.
According to Ravelin’s Global Payments Report 2026, frictionless authentication rates (the number of checkouts approved without challenge) have fallen in 76% of countries around the world, dropping to 62% in Europe, 54% in North America, and averaging 58% globally. The decline comes as issuers tighten exemption rules, causing more consumers to face payment friction and abandon their online carts.
Ravelin’s data reveals that 78% of merchants are actively trying to reduce friction through exemptions, but these efforts are increasingly rejected. The result is a “vicious circle,” the company warns, where false declines rise, conversions fall, and retailers lose revenue precisely when competition for consumer attention is at its peak.
“This peak season, the winners will be merchants who offer their customers the smoothest checkout experiences,” said Martin Sweeney, CEO at Ravelin. “Our research shows that shopping experiences are increasingly interrupted by authentication challenges, and merchants are not taking full advantage of the opportunities for frictionless checkout. This means fewer conversions at a time when consumers’ attention spans are shorter than ever.”
Ravelin urges merchants to take immediate steps to mitigate payment friction, including:
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Sharing richer data with issuers to validate legitimate transactions.
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Adopting adaptive authentication strategies instead of blanket exemption requests.
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Investing in AI-driven authentication systems that predict and prevent friction before it happens.
“Merchants that master data-powered, AI-native authentication will convert more customers, protect revenue, and build loyalty at the busiest time of the retail calendar,” Sweeney added.
The report also highlights regional differences in 3D Secure (3DS) performance. While 3DS success rates have improved 47% in the US, the UK remains the global leader in authentication efficiency.
The findings come as the UK explores reforms to the Payment Services Directive (PSD2) under its National Payments Vision (2024), potentially moving toward an “outcomes-based” authentication model. The report notes that 51% of British merchants would like to see SCA abolished altogether, citing frustration over its impact on conversion rates.
By contrast, Asia-Pacific markets are tightening their authentication mandates, and 72% of merchants across the EEA express concern about how the upcoming PSD3 legislation will affect sales performance.
