What is PSD2?

PSD1 created the single payments market in 2007. Quickly, new players (initiators and aggregators), and new technologies appeared, requiring an update: PSD2 was adopted in 2015.

PSD2 adapts the payment market to new developments and strengthens security by imposing new rules such as strong customer authentication.

Since September 14, 2019, as part of PSD2, new rules related to strong customer authentication and common open and secure communication standards have been gradually implemented.

What is strong customer authentication?

Authentication is considered as strong when it combines two of the following three elements:

  • an element that only you know (a password, a secret code, etc.)
  • an item that only you have (your mobile phone via your bank application, a bank card, etc.)
  • a biometric characteristic (your fingerprint, voice recognition, etc.)

Strong authentication applies in three cases:

  • Access to the customer area.
  • Online payment; any online action involving a risk of fraud (such as a change of address).
  • A biometric characteristic (your fingerprint, voice recognition, etc.)

What does it change?

For all of your online transactions, strong authentication will gradually become widespread. It consists of securing your connections and your transactions with two-factor authentication, which will replace the SMS received on mobile. This reinforcement will not alter your experience, which will remain fluid and non-binding.