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PSD2 already facilitates a new type of online services since its introduction last year: online payment initiations and account information services. The new directive triggers a brave new world of interconnected financial services.
The Strong Customer Authentication, or SCA, is already part of the new directive but introduces strict requirements for payments to protect buyers against fraud and cyber attacks. With the requirements in place web shops and merchants will be able to securely take online or mobile payments directly from the customer’s bank account. Other companies will even offer new, personalised products that may use consumer’s bank account information. As of 14 September, all online payment transactions above €30 in the European Economic Area require a mandatory authentication step. In some cases this means extra authentication via text message or other means.
European banks, merchants and new payments providers have been preparing their compliance and technical capability with the new set of rules. Some countries have already announced that the SCA deadline will be extended, such as for example the Financial Conduct Authority in the United Kingdom, which has offered an 18-month extension.