With the fast paced digitization and internet application in every walk of life such as the home security system and others, your legacy protection has come to the forefront. However, legacy doesn’t necessarily mean valuables such as the financial documents, it can be as simple as your identity, family story, and your memoirs. All those become priceless to your descendants when you are no more. As a matter of fact, a lot of efforts is going on to protect your privacy in today’s time. Customer Authentication under PSD2 can be seen as an outcome of that endeavour.
What is PSD2?
Yes, we should address this question here before proceeding any further. This, in turn, will help us understand the importance of the technology PSD2 with an emphasis on Customer Legacy protection.
PSD2 stand for revised payment system directive that aims to revolutionize the financial sector, especially the payment sector. You will be happy to know that this technology has been developed by the countries of the European Union. The technology was launched in 2015. It is, however, mandated to be in place within 2018 in all countries of the European Union. The best part of this technology is that it will have a bigger role than today with a view to protecting your security. For instance, it will revolutionize the way you now make online payments and at the same time, what information would be available during the payment.
Key areas of PSD2
- The convenience of payment: To understand the impact of the PSD2 era, you have to compare both the current and the proposed systems of payment. Having said that, we mean, while making an online payment, at present you are either to enter your card details or bank account details every time you make an online payment. With the PSD2 in place, you will not be required to repeat the process again and again. Instead, merchants will retrieve your data from the bank.
All those put together indicates that the monopoly of the banking industry as regards the customer data will be over befitting the convenience of the customers. Simultaneously, there would be no need to route transactions through the third party service providers like MasterCard, Visa, PayPal and others. It further construes that the chances of data theft will be potentially minimized as the mediator gets eliminated in the new system. Under the PSD2 era, all account information will be made available at a place for those who have more than one banking accounts. However, this will happen within the ambit of the law.
- Strong customer authentication: PSD2 once implemented will put forth more checks as regards the recipient’s identity whenever you are making an online payment. However, specifics may still be debatable, but it’s certainly going to change with more emphasis on customer authentication than what is there in place today.
On the whole, customer authentication will experience a sea change soon befitting the demand for the extra layers security in the payment industry. At the same time, the elimination of the third party service providers in the payment gateway will enable savings on the part of the sellers that can be passed to the end users like us.