One of the objectives of the PSD2 is to expand the payment market by regularizing the action of new methods and new actors like Third Party Providers (TPP) that are non-banking actors and are classified in:
One of the main themes introduced by the PSD2, although not of immediate impact (it will enter into force with the RTS in September 2019), is certainly the secure authentication system, the so-called "Strong Customer Authentication" (SCA).
The term SCA means a method of "strong authentication" that will be applied every time the user accesses a payment account online, carries out transactions for payments, or any remote payment transaction from which may arise a risk of fraud or other abuses.
The SCA is an important and mandatory topic in the new legislation as it focuses on improving security in digital payments. The secure authentication system is based on the use of at least two of the factors defined below:
As already mentioned in the previous chapters, to regulate behavior in the new “digital” context, the European Commission has issued technical standards, the “Regulatory Technical Standards” (RTS), which all players operating on the market will have to adopt.
The RTS define the technical and safety rules to be followed in order to apply the new PSD2 in terms of:
Since the entry into force of the PSD2, on 13 January 2018, all Member States of the European Union have been called to comply with the new directive in terms of digital payments.
The content of the directive was certainly not easy to implement due to the many technological innovations and levels of security imposed.
The PSD2 can be considered a complex directive, but at the same time challenging, having the aim to exploit the large amount of user data, leading to a better knowledge and attention to customers.
All this translates into greater attention to the end customer and in particular to greater security and transparency, with the possibility for financial institutions to innovate and increase services and products offered, in order to acquire new market shares.
For end customers, this translates instead into lower costs for payments and other online operations, with the possibility of having more services and technologically advanced products.