New rules are coming for online payments and there will be a lot of advantages. Remember these abbreviations: PSD2, SCA and EMV 3D-Secure.
While a few years ago Mastercard believed that payments with cards would replace payments with cash, today it argues that payments will be possible with any device connected to the internet. But there will be rules.
At Business Breakfast, organised in partnership with Acepi, the General Director of MasterCard Portugal, Paulo Raposo, stated that “The discourse around PSD2 is usually aimed at banks, but ultimately it’ll have an impact on retailers,” as they are the main interface with consumers.
These themes were raised at the Business Breakfast, whose aim was to discuss what was new about the second version of the European payment services directive as well as other rules soon to come into force online: strong customer authentication (SCA) and the EMV 3D-Secure protocol, which will have commercial benefits and challenges.
Christophe Hilbring, head of Product Management & Innovation – Enterprise Security Solutions at Mastercard, who was also at the event, feels that “Major changes are taking place in the digital sphere because of new players and new trade practices. That is why the European Commission has decided to develop a legal framework for innovation, and also to create more competition between banks.”
If you don’t already know what it is, PSD2 is a the European payment services directive that came into force in 2016 in the aim of creating a legal framework establishing rules to open and access bank accounts safely. The aim is to improve the user’s buying experience and in that way to increase the conversion rate. It also aims to reduce fraud in e-commerce.
This new legislation obliges strong authentication requirements via the SCA but also facilitates the concept of recurring transactions, in which habitual transactions need no authorisation.
As far as the specifications of EMV 3-D Secure are concerned, any device will be permitted to accept in-app and wallet purchases or simplify integration with the shop.
As you can see, these abbreviations may be hard to remember, but they will help you to shop online quicker and safer in the future.