Introduction to PSD2 for your business
PSD2 Directive is in effect since September 14th, 2019. Its aim is to better protect consumers and increase fraud prevention in online payment. But PSD2 also brings challenges of introducing Strong Consumer Authentication (SCA). We’re here to help!
Get ready for PSD2
Strong Customer Authentication
Strong Customer Authentication
PSD2 imposes on any entity within the European Union that processes money the obligation to introduce Strong Customer Authentication (SCA) for all online payment transactions. SCA requires two out of the three types of authentication (2 FA) methods listed below:
Something you know
password, PIN, knowledge-based question
Something you have
device proximity, tokens, private key linking an app to a device
Something you are
fingerprint scanning, iris scanning, keystroke dynamics
Implementing an additional security layer may cause a lot of friction for customers. Any entity involved in the processing of a transaction needs a solution that can guarantee frictionless flow and at the same time top-tier security.
Read the European Banking Authority (EBA) Opinion on the elements of Strong Customer AuthenticationNethone powered SCA
Invisible to the
end‑user
end‑user
causing no friction and drop in the UX while maintaining top-tier security
3-factor authentication for recurring users
not only the demanded 2 FA
3DS 2.2 protocol compliant
which feeds you the right data to be passed on to the issuer to maximize acceptance rate
Behavioural biometrics to verify users
by observing the login and his interaction with the website
Machine learning (ML) based fraud prevention
for highest accuracy and trust between the merchant and payment ecosystem
Robust digital fingerprint
gathering 5,000+ attributes and creates 50 unique fingerprints of each user to use it later as an element of SCA
How to manage PSD2 SCA without friction?
Nethone provides real-time fraud analysis based on device fingerprinting and behavioral biometry combined with machine learning that quickly assesses the risk of every login attempt or on-line transaction. Then, based on probability (revenue based optimization) minimizes the level of friction for the customer. This can lead to enhanced UX and at the same time cut the operational costs!
Related Resources
3-factor authentication with Nethone
Nethone outperforms the standard 2 FA of SCA requirements by providing 3-factor authentication and not harming the speed of the transaction process. We added enhanced protection based on behavioral biometry and ML decision engine to maximize the security of each transaction. Nethone works in the background and in real-time verifies the user with the proprietary Profiler delivering over 5,000 attributes to analyze in detail their digital identity and detect imposters.
1 | Financial institution / Merchant
Something that user knows
The data checked during the login attempt. This is the only factor that needs to be secured directly by EU entity involved in money processing.
2 | Nethone
Something that user knows
The fingerprint and cookie created during client’s first visit.
3 | Nethone
Something that user is
The way that user interacts with the website - behavioral biometrics.
+ | Nethone
Enhanced protection
Advanced attributes enriching the context of user’s visit for example
Secure your online transaction for everyone's profit
Financial institutions /
Merchants
Merchants
- An additional safety layer in the IT SEC technology stack
- Considerably lower risk of account takeover
- Reduced operational costs associated with securing login attempts, i.e. by sending fewer SMS messages
End-users visiting a website
- Frictionless and secure login experience
- The whole process is conducted entirely in the background and does not require the user to take any additional steps
Companies outside the EU
- Better fraud & ATO prevention
- Safe global expansion
- Better UX
- Lower operational costs
Non-European Economic Area companies can still benefit