In today's fast-paced world of digitization and widespread internet use, legacy protection has gained paramount importance. Legacy doesn't solely encompass valuable financial documents; it can also include your identity, family history, memoirs, and Financial Protection. These elements become invaluable to your descendants when you are no longer present. There are considerable efforts underway to safeguard your privacy in the modern age, and one such endeavor is Customer Authentication under PSD2.
But, what is PSD2?
PSD2 stands for the revised Payment Services Directive, a technology designed to revolutionize the financial sector, particularly the payment sector. Developed by European Union countries, this technology was launched in 2015 and is mandated to be implemented in all European Union countries by 2018. What makes PSD2 particularly noteworthy is its role in enhancing security. It is set to transform the way online payments are made and the information available during the payment process.
Key Aspects of PSD2:
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Payment Convenience: To grasp the impact of the PSD2 era, consider the difference between the current and proposed payment systems. Currently, when making an online payment, you must repeatedly enter your card or bank account details. With PSD2, this repetition is eliminated as merchants retrieve your data directly from the bank.
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Reduced Banking Industry Monopoly: PSD2 will diminish the banking industry's monopoly on customer data, benefiting customer convenience. Transactions will no longer need to be routed through third-party service providers like MasterCard, Visa, PayPal, and others. This reduces the potential for data theft, as intermediaries are eliminated. Under PSD2, all account information will be consolidated for those with multiple banking accounts, all within legal boundaries.
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Strong Customer Authentication: With PSD2, additional checks on the recipient's identity will be introduced when making online payments. While the specifics may be subject to debate, the emphasis on customer authentication will certainly increase, aligning with the demand for enhanced security in the payment industry. Furthermore, the removal of third-party service providers in the payment gateway will lead to cost savings for sellers, which can ultimately benefit end users.
In summary, PSD2 is poised to bring significant changes to the payment landscape, enhancing both security and convenience for online transactions.
