The European Banking Authority (EBA) has extended its current deadline for the migration to strong customer authentication (SCA) under the revised Payment Services Directive (PSD2) for e-commerce card-based payment transactions as part of a new opinion published today.. This relationship will be powered by APIs that banks need to open to any Third-Party Provider that wants to aggregate account data and/or initiate payment services. It has been a challenging year for the Payments Industry with regards to PSD2. The 14th of September was supposed to be the day that the last part of the Payment Services Directive, or PSD2, was rolled out across the EU. your bank or government, then please contact them for advice first. Strong Customer Authentication, as defined in PSD2, means that transactions are authenticated using 2‑factor authentication or more. All rights reserved. The new deadline to implement Strong Customer Authentication (SCA) has been pushed back by fifteen months. The fintech community, who rely on these APIs for their innovations, have been frustrated by the lack of progress. 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It's enough time, according to the EBA, to make the expected developments. The new PSD2 directive is a fundamental piece of payment legislation in Europe. PSD2 is a customer-centric regulation that should lead to an improved customer environment, bringing benefits to end-users and all banking and payment parties. (function($){ They could not provide a testing environment to third-party service providers. //alert(email); The European Banking Authority (EBA) announcement (so-called Opinion) clearly showed that it has acknowledged that massive numbers of online merchants were not ready for this change. Not only in Europe but around the world. Please note we do not sell any products nor offer support directly to end users. $(document).ready(function(){ Put simply we have taken the hard work out of becoming PSD2 compliant with solutions that are built to handle your needs. This date was the "final deadline" for all companies within the EU to comply with PSD2’s Regulatory Technical Standard (RTS) related to the directive (EU) 2015/2366. Have enough time to adapt to the new processes and apply the best practices. Ariana has more than 15 years of international experience in the payment industry and is passionate about building new and beautiful products to help our clients unleash their potential. Not only in Europe but around the world. The revised Payment Services Directive 2 (PSD2) aims to better align payment regulation with the market and technology's current state. Nick Caley, Vice President of Financial Services and Regulatory at ForgeRock said: }, 3000); It’s how quickly companies can realistically achieve it. Prior to nativa, Ariana worked for one of the biggest Banks in Venezuela, with an American and European presence. Why we need strong authentication standards to deliver the promises of Open Banking. In fact, British challenger banks, known for their customer-centric service, are on track to triple their global customer base to 35 million in a sign of consumers voting with their thumbs for superior service. //alert(data); SCA deadline for PSD2 compliance is approaching fast, https://www.ingenico.com/global-epayments/manage-risk/psd2. Third parties will now be able to access banks’ application programming interfaces (APIs), so they can use the financial institution’s data and functionality to build services. Her main focus is helping international online business to increase the conversion rate and making payments more secure, decreasing the fraud costs. Caley believes that the slow pace of innovation among traditional banks could see more consumers vote with their feet by switching: “While banks drag their feet, rather than racing to implement these changes, consumer expectations are rapidly evolving to the detriment of incumbents. If you have questions regarding one of our products provided by e.g. By working more closely with third-party actors, financial institutions can better prepare themselves for the market changes and proactively identify research and development areas.Read more, Cloud platform to secure onboarding and access to digital banking services The new PSD2 directive is a fundamental piece of payment legislation in Europe. The EBA had to reset a deadline for the end of 2020. And yes, the coronavirus is adding another layer of complexity. New partnerships and open-banking APIs with the right security level brought by SCA and risk monitoring can generate value by: New customer onboarding will be made easier, offering end-users better tools to manage their finance and enticing them to buy new products and services provided by banks and TPPs. “This is the latest in a series of shortcomings from banks, who have failed to provide robust APIs for years. However, the benefits it offers to consumers may not be realised if financial institutions are slow to act. return false; if( msg.text() !== '' ){ success:function(data){ The core principles of the PSD2 RTS – i.e., Strong Customer Authentication (SCA), Secured Communication, Risk Management, and Transaction Risk Analysis (TRA) – have been maintained, confirming the directive's security objectives. The Payment Services Directive 1(aka PSD1 or Directive 2007/64/EC) opened up the European banking and financial services market and went into effect almost ten years ago. The move to open banking means removing barriers between competitors as it requires banks to allow their account details and transactions to be shared with third parties through APIs. ... 3D Secure version 2 is PSD2 compliant, at the same time it is driving the next generation of card fraud risk management and user experience, offering a significant opportunity for online businesses. In a nutshell, PSD2 simultaneously massively increases the amount of financial data moving into banks’ systems while als… And to provide a consistent and seamless user experience, banks will also have to collaborate to define a common approach at a country or regional level. Get the answers to the most frequently asked questions regarding PSD2 & RTS. var msg = $( '.wysija-msg' ); Copyright © 2020 Ingenico. However, the real losers here are the banks’ customers. This move will shake up the payments market, particularly in the eCommerce space, by encouraging greater competition, transparency, and innovation in payment services. Carried out strategically, PSD2 compliance can be a trigger for a wider review of identity management strategies, which will ultimately benefit customers and businesses alike with a smoother, more efficient and secure process. According to ComputerWeekly, challenger banks in the UK are predicted to triple their customer base next year. We help financial institutions take advantage of the ongoing digital transformation by ensuring customer trust and regulatory compliance.Read more, The fifth Anti Money Laundering Directive (AMLD5), PSD2 compliant solutions for your authentication needs. Many payment service providers (PSPs) offer hosted checkout options that take on the burden of PSD2 compliance themselves, assuming they are or will be compliant by the deadline. }); Many banks and merchants were not ready for the March nor the September deadline. url: "/wp-admin/admin-ajax.php", This obligation means using two of these three features: To ensure a smooth user experience, PSD2 requests banks to put security measures that are "compatible with the level of risk involved in the payment service" to find the right balance between security and user convenience.