The Payment Services Directive 2, known as PSD2, is a European Union directive on payment services parts of which first entered into force last year. With the introduction of this directive, consumers and businesses that have a payment account will have the opportunity to use two new payment services: payment initiation services and account information services. These new payment services apply to accounts that can be viewed online. The primary objective of PSD2 is to encourage innovation, widen consumer choice and to facilitate the creation of new financial products linked to payments services. Very significantly, the directive is also designed to combat fraud in the online payments sector.
The Regulatory Standards on Strong Customer Authentication, or SCA, are designed to protect against fraud and cyber threats. Strong Customer Authentication means that all online transactions of more than €30 must be secured through two-step authentication. In other words: two out of three factors are required to be fulfilled by the buyer when paying: what you own (for example a smartphone or smart watch), what you know (for example the name of your first pet or password) and who you are (for example your fingerprint or face scan). A payment that is authenticated with a thumbprint on your smartphone can therefore be a form of SCA.
This EBF web page presents links to relevant PSD2 websites of EU institutions and by national banking associations that are a member of the EBF.
The EBF is the voice of the European banking sector, bringing together national banking associations from 45 countries. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.
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