Banks will have to reassess their e-banking and mobile banking implementations against the PSD2 RTS requirements, says Aite Group.
Although the revised Payment Services Directive (PSD2) was published more than a year ago, the market had to wait for further details regarding its implementation, which will most notably require banks to open their payment account data and will require dual-factor authentication for all online payments. This latest Aite Group report, PSD2 Regulatory Technical Standards: Content and Market Impact, looks at the proposed regulatory technical standards (RTS) published by the European Commission this February, sharing insights into the requirements for strong customer authentication (SCA) and secure communication as well as analyzing the business impact the standards will have on the EU payments market.
“With the RTS nearly finalized, banks and payment service providers must assess what it takes to become compliant with the RTS requirements,” says Aite Group senior analyst Ron van Wezel. “But even more importantly, they need to think strategically and define a roadmap to stay competitive in a PSD2 world,” he says.
According to Aite Group research, banks and payment service providers will be the most impacted by PSD2 regulatory technical standards. Banks will have to make associated investments without a guarantee of revenue for their efforts, while only payment service providers that show low fraud rates and deploy best-in-class fraud prevention technology will be positioned to win market share.