The Revised Payment Services Directive (PSD2) is poised to revolutionize the payment services industry. Its underlying principles mean that industry participants will have to innovate in terms of product structuring, service delivery, user experience and optimize in terms of costs to retain market share.
The PSD2 Directive is supported by other initiatives which promote innovation in customer experience with their own revolutionary leaps in transactional security: The eIDAS Regulation provides pan-European, cross-border mechanisms for customer authentication and ensuring trust while technical standards define just what it means to have Strong Customer Authentication (SCA).
Together, these directives all work towards the singular goal of making the payments industry in Europe safer, faster, cheaper and more convenient. The underlying foundations of all these initiatives are based on the following principles:
A deeper analysis of all the recent European Directives for the payments industry reveals that there is a great symphony at play here. Companies like Utimaco have recognized this: With eIDAS, the European Commission is looking to stimulate the digital market in Europe. Being the first HSM vendor certified according to Protection Profile EN 419 221-5, Utimaco helps pave the way for compliant and highly secure trust services today and in the future. These ambitions are also reflected in an increasing number of current and upcoming partner projects.”
The sum total of all of these taken together – EU initiatives and business participation – paves the way for a true Digital Single Market across national borders in Europe, with innovative products and services, improved customer experience and nonetheless appropriate and security measures.