Adaptable, Risk-Based Dynamic Authentication
The European Banking Authority (EBA) has now published the final guidelines for the European Union's Second Payment Services Directive (PSD2), which is set to go into effect in 2018. This is going to have significant impacts on digital commerce in Europe and global implications. One of the most impactful changes will be the requirement that all electronic financial transactions, minus a few carve-outs, will be subject to Strong Customer Authentication (SCA) requirements.
PSD2 is to also intended to create Open Banking where the customer will have greater choice and flexibility with their financial services. As new players enter the market this is going to mean competition will intensify, making the customer experience more important than ever. So, how do you ensure that your company is adhering to the new PSD2 regulations without sacrificing the customer experience?
Reducing the Risk of Data Breaches and Massive Fines!
Traditional authentication approaches can also increase your risk exposure by centrally storing authentication credentials that can subsequently be stolen. After the General Data Protection Regulation (GDPR) goes into effect in May, 2018, companies transacting in the EU could face possible fines of upwards of €20m or 4 percent of worldwide turnover (learn more about GDPR from our Solution Brief). iovation’s multifactor authentication solution, LaunchKey, solves for this issue by storing credentials on the device, rather than in a central database that can be breached.
Download this solution brief to learn how iovation's Dynamic Authentication solution can meet the requirements for SCA or qualify for SCA exemptions, without sacrificing the customer experience.