New rules for e-commerce payments are coming, and the benefits promise to be many. Get these acronyms: PSD2, SCA, and EMV 3D-Secure.
While a few years ago Mastercard believed that payments would move from cash to cards, today it believes that payments can be made with any device with an internet connection. However, there will be rules.
Speaking at the Business Breakfast, organized in partnership with Acepi, the general manager of MasterCard Portugal, Paulo Raposo, believes that “the speech around PSD2 is usually very directed to banks, but ultimately will impact the business of retailers” since they are the main contact for consumers.
These topics were discussed at the Business Breakfast, which came about with the aim of making known what the second version of the European Payment Services Directive brings as well as other standards soon to come into force online: Strong Customer Authentication (SCA) and the EMV 3D-Secure protocol, which will bring commercial advantages and challenges.
Christophe Hilbring, responsible for Product Management & Innovation – Enterprise Security Solutions at Mastercard, and also present at the event, considers that “there are big transformations happening in the digital space with the fact that we have new players and new commerce practices created. That’s why the European Commission decided to develop a legal framework to innovate, but also to create more competition between banks”.
If you don’t know what it is, PSD2 is a European Payment Services Directive that came into force in 2016 with the aim of creating a legal framework that sets out rules for opening and giving access to bank accounts in a secure way. The goal is to improve the user’s shopping experience and thus increase their conversion rate. In addition, it also aims to reduce fraud in online shopping.
This new standard then mandates strong authentication requirements through SCA but also facilitates the concept of a recurring transaction, whereby it is not necessary to authorize a regular transaction.
As for the EMV 3-D Secure specifications they will allow any device to accept in-app payments and via wallets or simplify integration with the store.
As you see, these acronyms may be hard to remember but they will help you in the future to shop online in a faster but also more secure way.