The Council of Ministers’ presidency recommended that customer authentication should be mandated in a range of payment scenarios, including where consumers wish to register sensitive payment data to be used in a wallet solution. EU countries should ensure that payment service providers (PSPs) implement the authentication procedures.
Customer authentication should also be required in cases where consumers want to access their payment account online, make an electronic payment transaction or signs up to an electronic debit mandate.
Plans to reform existing EU laws governing electronic payments with PSD2 were first published by the European Commission in 2013. Under the reforms, third-party payment initiation service providers would need a license to operate in the EU.
Among the other proposals backed by the presidency of the Council of Ministers are rules which are intended to ensure that all PSPs have access to existing payment systems and that restrictions on that access are limited to certain types of payment systems.
If its proposals were adopted, PSPs would also be subject to rules requiring them to implement appropriate mitigation measures and control mechanisms to manage the operational risks, including security risks, related to the payment services they provide.
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