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.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.