European banks are not ready to meet the Dec. 31 deadline to comply with the PSD2 regulation, which requires strong customer authentication when providing API access to banking platforms, says Dr. Steven J. Murdoch, a principal research fellow at University College of London.
Now that the deadline for all e-commerce card-based transactions in the EU to comply with the new PSD2 "strong customer authentication" requirement has officially been extended to Dec. 31, 2020, authorities are emphasizing the need to make a smooth, uniform migration to the new forms of authentication.
Delayed enforcement of the "strong customer authentication" requirements for online transactions under the European Union's PSD2 regulation is hampering efforts to enhance security. That's why the European Banking Authority should act quickly to develop a new timeline.
Because banks, fintech firms, merchants and payments processors in the EU have struggled to meet the Sept. 14 deadline for compliance with the new PSD2 "strong customer authentication" requirements for electronic payments, it may take a while for European consumers to notice authentication changes.
PSD2 requirements for strong authentication and third-party bank account access go into effect this September. Angie White, product marketing manager at iovation, discusses the implications of the directive inside and outside the European Economic Area.
In this in-depth interview, Daniel Cohen of RSA discusses how open banking, also known as banking as a service, will affect the fight against fraud and offers insights on the security steps banks should be taking.