PSD2 Strong Customer Authentication solution for compliance and convenience

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

The updated Payment Services Directive (PSD2) is going to change the banking and payments landscape in Europe. It will require organizations such as personal, business and corporate banks, card issuers, eMoney providers and others to implement APIs, which will open up the payments market for providers of all kinds.

Security is also a critical part of the standard. Payment account providers will be 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 users accessing APIs from January 2018 and the EBA’s Regulatory Technical Standards are expected to come into force in early 2019.

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 ensure compliance and 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 will want to have 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.

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.

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