How To Implement PSD2 Compliance For Your Business

1. How To Implement PSD2 Compliance For Your Business

2. Today, money is sent through electronic means only. Governments have therefore focused on regulation to safeguard customers and hold online companies, financial institutions, and payment service providers responsible for maintaining the security of user data. The European Banking Authority’s (EBA’s) attempt to address consumer protection and the requirement for rules on how third-party providers access banking data is the Payment Services Directive 2.0 (PSD2). Since the initial Payment Services Directive was passed in 2007, several things have changed, including the prevalence of online payments and the ease with which third parties now have access to our bank accounts. PSD2 will probably impact the electronic payments sector similarly to how the GDPR changed privacy protections worldwide. PSD2 must be followed even if it only directly affects EU member states; anyone outside the EU who wants to conduct business there must. The deadline for compliance if you run any business within the EU was December 31, 2020. Therefore, you have to comply with PSD2. For a company to get PSD2 compliance, it is best to go for psd2 compliance solutions. Since 2018, the PSD2 (Revised Payment Services Directive) of the European Union has been in force. Although the specific laws may vary significantly among EU member states, the fundamental principles remain the same. You might be wondering what it takes for a company to be PSD2-compliant. Here, we’ll outline some of the key things for you to know for psd2 compliance: What new regulations are there under PSD2?

3. The European financial services market is made more accessible by PSD2, which also increases its efficiency. One significant modification made by PSD2 was the requirement that banks and other entities holding accounts grant secure access to those accounts via APIs. Another goal of the directive was to make it possible for so- called Third-Party Providers, or TPPs, which provide external services, to offer information and payment services to customers directly. What Effect Will PSD2 Have on Your Company? Strong Customer Authentication is the PSD2 rule that will affect you the most this year (SCA). When acquiring a European bank, businesses must use two-factor authentication to process online payments under SCA. Credit and debit card companies will likely reject the transaction if SCA is not in use. These regulations apply when a customer uses a credit or debit card issued by a European Economic Area (EEA) bank, which is made up of all EU member states as well as Iceland, Liechtenstein, and Norway. If the acquiring bank they use for payment processing is located in the EEA, the new regulations apply to merchants not situated in the EEA. Your payment procedure must be SCA compliant if you are an EEA merchant and conduct online sales to customers in this area. Who is required to follow PSD2? PSD2 impacts most people who interact with (digital) financial services. However, depending on the direction of your organization, its effect varies. Due to their ability to become Third Party Providers, providers of financial services have access to new prospects due to PSD2.

4. What new rules are included in PSD2? PSD2 improves the efficiency of the European financial services industry while simultaneously increasing accessibility. The need for banks and other account-holding entities to give secure access to those accounts via APIs was one key alteration introduced by PSD2. Making it feasible for so-called Third-Party Providers, or TPPs, who offer external services, to directly provide information and payment services to clients was another objective of the regulation. Who has to adhere to PSD2? PSD2 affects the majority of users of (digital) financial services. However, its impact differs based on your organization’s direction. As a result of their capacity to turn into Third Party Providers, financial service providers gain access to new clients. What benefits do psd2 compliance solutions offer? The CIAM platform provided by PSD2 Compliance Solutions can be used to launch a TPP or achieve PSD2 compliance. The PSD2 compliance solutions Identity Platform not only offers several features to aid with PSD2 compliance but also enables you to design a seamless login and authentication experience specifically for your clients. Solutions for PSD2 compliance

5. To fulfill and surpass the Strong Customer Authentication criterion, Identity Platform offers a variety of authenticators, including sophisticated MFA techniques for web and mobile authentication. Several degrees of authentication are available, such as mobile push notifications, QR code logins, mobile biometrics, and Single Sign-On (SSO). You may easily specify your needed Identity Assurance Level (IAL) and select between commercial and government bring-your-own-identity (BYOI) providers or data identity proofing services using the identity proofing module of the PSD2 compliance solution. Customers can see, amend, download, and delete their personal and consent data using the consent management module, which integrates authorization into the user journey. Deputy privacy officers have real- time control over data and privacy protection procedures.

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