New rules ease online shopping
1 December, 2017
The revised payment services directive, adopted last Monday by the Commission, is to provide consumers with more convenient and innovative payment solutions, the EU press service reported. The new rules implement the recently-revised Payment Services Directive (PSD2), which aims to modernise Europe's payment services so as to keep pace with this rapidly evolving market and allow the European e-commerce market to blossom.
The rules allow consumers to use innovative services offered by third party providers, also known as FinTech companies, while maintaining rigorous data protection and security for EU consumers and businesses. These include payment solutions and tools for managing one's personal finances by aggregating information from various accounts. “These new rules will guide all market players, old and new, to offer better payment services to consumers while ensuring their security,” VP Valdis Dombrovskis said.
A key objective of PSD2 is to increase the level of security and confidence of electronic payment. In particular, PSD2 requires payment service providers to develop strong customer authentication (SCA).