Stripe & SCA: a new European regulation


Kinow offers several payment modules to meet its customers and their streaming services needs.

In 2014, Kinow integrated Stripe to enable the monetization of video content, by unit purchase (TVOD) or subscription (SVOD) through streaming platforms.

Since 2019, Kinow is a verified partner of Stripe with support from SCA (Strong Customer Authentication). This is a new demand for European regulation to reduce fraud and make online payments more secure. Concretely, it involves asking for additional authentication to customers during online purchases.

Stripe payment module is used by the majority of Kinow’s customers to make secure payments on their platforms for automatic subscriptions renewal and the purchase of online videos. After payment validation, video accesses are generated allowing the videos viewing.

The success of secure online transactions is fundamental for the sites durabilities and users satisfaction.

1. European payments are changing

Since the 14th September 2019, PSD2 European regulation introduced Strong Customer Authentication (SCA) requirements for many online payments made by European customers. To ensure payments aren’t declined, businesses need to build an extra layer of authentication into online card payments, unless transaction-specific exemptions apply.

2. Stripe compliance with SCA

Solutions such as Kinow using Stripe and technically ready for SCA, enable the creation of payment flow that meet SCA requirements and the exemptions that apply, thus helping to protect the transaction conversion rate.

  • Protocole 3D secure 2: when a payment request is initiated by a client, Stripe detects whether authentication is needed. If required, Stripe uses 3D Secure 2 to authenticate the customer using a one-time passcode or biometric ID, depending on what their bank supports. Once a customer’s identity has been confirmed through 3D Secure, the card can be charged.

  • Avoid fraud: Stripe Radar uses machine learning tools to reduce fraud rates across the entire Stripe network, allowing the company to benefit from more exemptions. Detecting theses fraud, Stripe can block fraud for any type of business using machine learning that trains data across millions of global companies. Thus, Stripe helps distinguish fraudsters from customers and apply Dynamic 3D Secure to high-risk payments. Radar’s algorithms adapt quickly to shifting fraud patterns and to your unique business.

  • Built-in subscription logic: for businesses accepting recurring payments, Stripe Billing identifies which subscription charges require authentication and can even trigger an email to a subscriber when additional authentication is needed (3D Secure 2). Indeed, banks will decline recurring payments that require SCA unless you obtain authentication from customers.

To avoid a high rate of churn with unnecessary unsubscriptions on its video-on-demand platform, it is fundamental to choose a SaaS solution that has integrated reliable and secure payment methods.

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