Worldpay has launched its new Authentication Optimization Service, a patent-pending solution that uses AI to help merchants increase payment approval rates while keeping checkout friction to a minimum.

The service is targeted at merchants operating in non-3DS regulated markets, where strong customer authentication isn’t mandatory but payment declines still pose a challenge.

Smarter Security, Fewer Abandoned Carts

The new system leverages billions of global transaction insights to make split-second decisions on when to use 3D Secure (3DS) authentication — and when to skip it. By dynamically assessing each transaction’s risk level and the issuer’s behavior, the AI determines the optimal path for approval.

“We’re using AI and deep transaction insights to help merchants capture more revenue and deliver seamless payments,” said Cindy Turner, chief product officer at Worldpay. “Security and seamlessness aren’t mutually exclusive — they’re critical components in how we optimize every payment.”

In short, Worldpay wants to turn “declines into approvals” — and reduce checkout friction that often leads to abandoned carts.

A Collaborative Push Toward Frictionless FinTech

Visa has already backed the approach. “Data-driven, adaptive methods like this can bridge the gap between merchant needs and issuer risk management,” said James Mirfin, SVP, head of risk and identity solutions at Visa.

The service’s AI logic goes beyond traditional, rules-based fraud systems. Instead of blindly applying 3DS to every transaction, it selectively routes payments based on live data — maintaining security and compliance while streamlining the customer experience.

Pilot Results: Higher Approvals, Minimal Fraud

In a pilot study with a global cruise line using 3DS on all transactions, Worldpay reported a 5.5% improvement in authorization rates, with double-digit gains in non-regulated markets. Notably, fraud remained nearly flat, with just one chargeback recorded in two months for transactions that bypassed 3DS.

Other standout benefits include:

• Improved user experience: Fewer authentication prompts mean less cart abandonment.
• Adaptive intelligence: AI continuously learns from market and issuer trends.
• Plug-and-play integration: Merchants using Worldpay’s 3DS Flex can activate it instantly.
• Maintained fraud protection: Full 3DS benefits remain intact when authentication is applied.

The Bigger Picture

The timing couldn’t be better. As global digital payments rise, the industry faces a delicate balance between fraud prevention and user convenience. Rigid authentication protocols can safeguard transactions but often at the cost of conversion rates.

Worldpay’s move aligns with a broader FinTech trend — using AI to replace static compliance rules with dynamic, data-driven systems that serve both merchants and consumers.