20 September 2019

EBF: Card payments ecosystem requires 18 extra months for SCA

The European Banking Federation hosted a workshop on the full implementation of the second EU Payments Services Directive, known as PSD2, which included an expert-led discussion on the Strong Customer Authentication rules that took effect across the EU.

A successful implementation of the strong customer authentication requirements for online card payments in Europe can only happen effectively once the entire payments ecosystem, including service providers, banks as well as retailers and merchants, is ready.

The EBF notes the swift response of European Banking Authority to the concerns over certain elements of strong and secure customer authentication under PSD2. The approach under the EBA opinion issued in June, which opened the doors for National Competent Authorities to grant limited additional time, was designed to avoid disruptions in online payments.

EBA’s decision to leave room for national authorities to act by providing limited additional time, particularly in countries where not all participants in the payments chain were ready yet to use the new strong authentication services, was enacted on across Europe, with different approaches in national markets in the EU.

Against that background, the EBF now reiterates its call on the EBA to grant an 18-month extension that applies to the entire EU system for remote card payments.

Says Gijs Boudewijn, Chair of the EBF Payment Systems Committee:

“Based on feedback we received from the national communities we believe that 18 months is a reasonable period for full migration to strong customer authentication. Without such an extension we run the risk that online retailers and their customers will not be able to sell and buy their services and products online.” 

Full press release on EBF

© EBF