By James Devoy, EVP for cyber risk services, Sysnet
Next year, with the expiry of the European Banking Authority’s (EBA) migration deadline, the Payment Services Directive’s (PSD2) Strong Customer Authentication (SCA) requirements will come fully into play. Between now and the 31st December 2020 deadline, the industry is doing all it can to fulfil the SCA requirements laid out by the EBA. Many C-Suite executives have concerns about the negative impact the lack of payments industry readiness could have, not only on their business but also about the effects SCA may have on their customers.
One of the main concerns with SCA is around changes to the payment process, which is justifiable, as the main objective of SCA is to enhance security and reduce fraud through implementation of more robust means of authenticating the identity of the consumer and confirming their consent for the payment transaction. With these new enhancements, consumers may have to take additional steps to complete their purchase. These steps may complicate or slow down the checkout process and, at worst, could cause a customer to abandon the…
