Eternity Law International — News — More opportunities for internet banking with the PSD2 directive

More opportunities for internet banking with the PSD2 directive

Published:
June 29, 2021

PSD2 directive. What is it?

PSD2 – Payment Services Directive 2015/2366 is the second payment services directive to replace the first 2007/64 / EC. The Directive on payment services in the internal market was adopted on 25 November 2015 by the European Parliament and the Council. Its provisions are aimed at harmonizing relations in the market of payment services, obliges to obtain a license to provide financial services, regulates the rights of consumers, users and providers of payment services, and also consolidates and ensures the security of electronic transactions. This is a legal act that at least representatives of financial institutions and lawyers need to know.

The main purpose of PSD2 directive is aimed at:

  • Improved authentication (SCA), which is focused on reducing fraud and is necessary for all transactions of European commerce;
  • The emergence of third-party regulated service providers has begun to increase competition and stimulate innovation in the financial sector.

Two-factor client authentication

The task of reliable authentication is to reduce fraud and payment fraud, all for the convenience of the client and minimal impact on his experience in the transfer process.

As for two-factor authentication, it is a method of access control by which customers must provide two types of information, for example: knowledge is a PIN code – information that the client knows and biometric data – fingerprint, face recognition, etc.

The industry protocol is 3DC (3D Secure), which is the software that enables the authentication process (fingerprint, face recognition) and makes the transfer process more convenient through Apple Pay and Google Pay digital wallets. However, some transactions do not require such authentication, it is a low-cost payment, recurring payment, and the customer can cancel the authentication process, noting the exceptions in the settings.

Emergence of third-party providers (TPPs)

Two new regulated entities are emerging under PSD2 directive:

  • Payment Initiation Service Providers (PISP). PISP offers payment flexibility for customers and allows third-party transactions on behalf of the consumer;
  • Account Information Service Providers (AISP) allow third parties to access consumer information and account information. This service helps to collect data from several accounts in one application and view your financial balance.

TEC support is a radical change in Fintech. TEC is about convenience, centralization of information and enhanced control for consumers.

So PSD2 is the most discussed topic for the banking industry, which is a paradigm shift for banks in the payment business.

Our consulting team monitors the level of authorization and fraud for all our clients, warns them of any potential problems, and helps to find solutions.

You could be interested

PSP license in Sweden

Capital holders intending to invest funds in establishment and progress of a financial business-structure and officially approve a payment firm must complete many procedures, namely, establish a local organization, submit the relevant documentation to regulative bodies and bring their enterprise into compliance with the requirement points of the regulator. Sweden has established itself as a...

Money management in 2020

Money management in 2020 – first of all, it is necessary to determine jurisdiction. Managing organizations, brokers, trusts, investment funds and foreign banks, after opening foreign accounts, offer a variety of services to persons with personal assets with high rates. Despite the fact that in the country where you live, the use of similar services...

5 Best Jurisdictions for Gaming License

The global gaming market was estimated at $231.34 billion in the last year, and it is anticipated to reach a value of $353.35 billion over the next five years, registering a CAGR of 6.96% during the forecast period. As the industry grows at an unprecedented rate, this is the right time to join the profitable...

Gaming License in Kahnawake

Kahnawake, a Mohawk territory in the Canadian province of Quebec, is well-known for its robust cultural legacy and steadfast dedication to preserving its distinct identity. Kahnawake has not only honored its rich cultural heritage in recent years, but has also underlined its dominance in the sphere of casino operations. Kahnawake provides a hospitable atmosphere for...

SEMI license in Cyprus

The Fintech industry in Cyprus has been developing quite rapidly over the past few years. The country has already formed a market for financial services, which is closely related to technology. This fintech sector is expected to show a rapid pace of development following the publication of the National Strategy for Distributed Ledger Technologies (DLT)....

The benefits of investing in Europe in 2020

The benefits of investing in Europe in 2020 – an urgent issue for many investors and entrepreneurs today. According to IMF forecasts, the coronavirus pandemic will entail a fall in the economy in 2020. According to preliminary estimates, the crisis will be more global than in 2008-2009. They plan to restore the global economy during...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
+852800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free
Calls are made only from Portugal

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360