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The payments industry has slowly become aware that is has to prepare for new regulations after the European Commission set out new laws, together forming the Payment Services Directive 2 (PSD2). Strong customer authentication, security, transparency and innovation are key in PSD2, which comes into effect in 2018. What should you be doing about PSD2?
The Payment Service Directive II enhances new guidelines in consumer protection, promotes innovation through transparency and improves the security of payment services. Commissioner Jonathan Hill, responsible for Financial Stability, Financial Services at Capital Markets Union, said: “European consumers want to know that their payments are safe when they shop or make a payment online. The new Payment Services Directive will ensure that electronic payments in Europe become more secure and more convenient for European shoppers. This legislation is a step towards a digital single market; it will benefit consumers and businesses, and help the economy grow.”
CM Telecom has worked with CA Technologies and Finextra to produce a whitepaper in order to explore and raise awareness of the views of market participants on the opportunities and challenges of PSD2.
CM Telecom has worked with CA and Finextra putting together the whitepaper because it has two major strengths if it comes to implementing PSD2. CM Telecoms Market Manager Finance Richard van Anholt explains: “One is our existing business on the security and two-factor authentication side. Mobile is a secure way of exchanging passwords. Of course anything can be hacked in theory, but this is a secure pipeline end-to-end for exchanging passwords. It is not an open environment anyone can hook into. The second pillar is access to account. If mobile is a central point for exchanging information such as passwords and marketing information, then it can be for account information as well.”
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