PSD2 Strong Customer Authentication solution for compliance and convenience

Daon offers solutions for PSD2 Strong Customer Authentication requirements that do not compromise customer convenience.

The updated Payment Services Directive (PSD2) changes the banking and payments landscape in Europe. It requires organizations such as personal, business and corporate banks, card issuers, eMoney providers and others to implement APIs or other means to open access to other payment service providers. This opens up the payments market for providers of all kinds.

Security is also a critical part of the standard. Payment account providers are required to implement Strong Customer Authentication (SCA) when their customers are making payments, accessing their accounts or making certain kinds of changes to their account. There are few exceptions to this. Payment service providers will need to authenticate customers according to the EBA’s Regulatory Technical Standards (RTS) beginning in September 2019.

Differentiated customer service with a better payment experience

These changes are an opportunity for banks and payment service providers to differentiate themselves by offering a better payment experience than their competitors. Organizations need to move quickly to achieve compliance and ensure that customers have a seamless payment experience.

The standard requires multi-factor authentication, with two of the three options used each time – knowledge, possession and inherence (biometrics). Daon’s vision is that each customer’s mobile device will be used as an authentication factor and our experience is that most customers will want to use a biometric (inherence) option.

Organizations need a flexible solution that offers options for most customers today and that provides the basis to take advantage of the rapidly changing mobile device and security landscape. Daon’s IdentityX platform provides a way for banks and other payment service providers to enable this.

Find out more about Daon and strong authentication for PSD2 compliance

Daon’s track record in large-scale biometric systems provides reassurance that the authentication component of your PSD2 project can be delivered on time, resulting in a secure, reliable and scalable solution. Working with Daon on Strong Customer Authentication allows the organization to focus on all of the other changes that are coming with PSD2, knowing that they have a secure, flexible authentication platform in place.

Download our white paper on Biometrics in PSD2. Or, for more information on IdentityX or to discuss your individual requirements, get in touch with us.