Cover story: Strong Customer Authentication

Published: September 20, 2019

The next evolution in online payment protection arrives in September, but some technology experts warn that markets remain woefully unprepared and it could cost Europe’s retailers a staggering €57bn in lost sales.

A section in the second iteration of the Payment Service Directive, known as PSD2, will see a new European regulatory requirement added to online payments called Strong Customer Authentication, also known as SCA.

SCA is designed to cut down on online fraud and make payments more secure for eCommerce firms and their customers. It requires two of three elements to be fulfilled before a payment can be accepted. 

The customer must provide something they know like a password, something they have like a code sent to their mobile phone and something they are, for example, their fingerprint or facial recognition. 

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