The EPC has welcomed the SecuRePay Forum’s initiative for security in mobile payments and third-party access to payment accounts. The ECB’s security guidelines for retail payments that were developed with the EBA and were applicable from August 2015 will be in force until September 2018 when PSD2 requirements come into force. The EBA has granted exemption from SCA for contactless transactions under €50 and CNP low-value transactions under €30, provided the cumulative amount does not exceed €150 and €1000 respectively or the number of times since the last application of SCA does not exceed five consecutive occasions. PSPs must provide strong authentication systems to ensure secure identification and traceability of each interaction in the payments value chain through analytics or other monitoring tools.
Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.
Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.
The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2