The European Commission has long sought to make electronic payments as simple and secure across the EU as they are within a single market.
- Strong Customer Authentication (SCA) for electronic payment transactions.
- Third-party access to data, with the consent of consumers.
- Enhanced protection and rights for consumers.
- Increase of competition in the market.
- 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.