Why has the adoption rate of Adyen's new 3D Secure 2.0 implementation decreased among APAC merchants over the past month?

Introduction

The adoption rate of Adyen's new 3D Secure 2.0 implementation has decreased among APAC merchants over the past month, raising concerns about the product's performance in this crucial market. To address this issue, I'll conduct a systematic analysis to identify the root cause, validate our findings, and develop both short-term and long-term solutions.

My approach will involve clarifying the context, ruling out external factors, understanding the product and user journey, breaking down the metric, gathering relevant data, forming hypotheses, conducting root cause analysis, and proposing validation methods and next steps. This structured process will ensure we thoroughly investigate the problem and develop effective solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been a recent change in the 3D Secure 2.0 implementation. Has there been any update or modification to the system in the past 1-2 months?

Why it matters: Recent changes could directly impact adoption rates. Expected answer: Yes, there was a minor update to improve transaction speed. Impact on approach: If confirmed, we'd focus on the update's impact on user experience and merchant integration.

• Considering the specificity to APAC, I'm wondering if there are any region-specific factors at play. Have we seen similar trends in other regions, or is this unique to APAC?

Why it matters: Helps determine if this is a localized issue or a global trend. Expected answer: The decrease is primarily observed in APAC. Impact on approach: If APAC-specific, we'd investigate regional factors like local regulations or market conditions.

• Given the focus on merchants, I'm curious about the onboarding process. Has there been any change in how we support or educate merchants during implementation?

Why it matters: Changes in support could affect adoption rates. Expected answer: No significant changes to the onboarding process. Impact on approach: If unchanged, we'd look more closely at merchant feedback and potential market shifts.

• Considering the competitive landscape, I'm wondering if there have been any significant moves by competitors in the APAC region recently. Have any major players introduced new features or pricing models?

Why it matters: Competitive pressures could influence merchant decisions. Expected answer: One competitor launched a new fraud prevention tool last month. Impact on approach: If confirmed, we'd analyze our value proposition compared to new competitive offerings.