What changes does PSD2 bring?

The European Commission has long sought to make electronic payments as simple and secure across the EU as they are within a single market.

  1. Strong Customer Authentication (SCA) for electronic payment transactions.
  2. Third-party access to data, with the consent of consumers.
  3. Enhanced protection and rights for consumers.
  4. Increase of competition in the market.
  5. Adding new payment services into regulation.

The changes mean that new rules promote transparency in mobile and online payments, allowing customers to use third-party providers to manage their finances.

With the customers’ consent, third-party payment providers can access banking data through APIs, or application program interfaces. PSD2 is also trying to implement modern security methods across all fields. It is now a legal requirement to provide stronger identity checks during online purchases, making customer transactions safer through multi-factor authentication.

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