The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Treasury

Third-party providers come under PSD2 scrutiny

Payment providers looking to capitalize on open banking will have to jump through regulatory hoops to prove they are able to offer the services they claim, under the final set of rules from PSD2.

Open banking is a simple-sounding concept – the rules around it, however, are anything but.

Under the European Union’s second payment services directive (PSD2), strong customer authentication (SCA) aims to ensure that the third parties that banks deal with are who they claim they are. 

Mark_Hewlett-160x186

Mark Hewlett, Ebury

To meet this need, adequate proof needs to be provided. This proof comes in the form of two or more elements defined as knowledge (something only the user will know), possession (something only the user possesses) or inherence (something that the user is). 

Before a transaction can be made, the regulator wants to ensure that third-party payment service providers (TPPs) involved can process the transactions as they are claiming, and that neither the sender nor recipient is falling victim to fraud.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of acces below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£68.33 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree