PSD2 Update – Lack of clarity even after PSD2’s introduction.

The relaxation of the PSD2 deadline is relieving the pressure on merchants and creating new challenges for other market participants.

The new technical standards pursuant to PSD2 SCA entered into force on 14 September. The objective was to make payments in the EU more secure and simpler for consumers and merchants alike. But instead, things have become more complicated. While the deadlines have been retained, transactions carried out without SCA will not be penalised by most national supervisory authorities for the time being.

This relieves the pressure on many participants in the market. However, a lack of clarity around the ultimate deadline and the consequences of non-compliance with the PSD2 SCA requirements is causing uncertainty. Many national supervisory authorities have introduced transition periods.

Europe’s major financial markets, such as Germany, France, the UK, Italy, Ireland and Austria, have opted for an 18-month transition period. European banks, on the other hand, are seeking a single consistent solution across all of the affected countries. So far, discussions have been held at national level. The European Banking Authority (EBA) is expected to issue its own opinion and recommendations for a transition period in October.*

As far as merchants are concerned, there is no doubt: PSD2 SCA is on its way. Any businesses that are not yet ready must update their processes now, even though the final transition dates are still to be agreed. Europe must decide on PSD2 SCA. The transition periods for the introduction of SCA pursuant to PSD2 are being decided by individual member states, and will be published in the coming months. Currently, all we know is that there is no clarity.

On the safe side
Regardless of the implementation deadlines, Datatrans offers state-of-the-art solutions allowing merchants to comply with the requirements of PSD2.

Further Information

eur-lex.europa.eu
www.emvco.com
docs.datatrans.ch

*UPDATE Oct.17, 2019: EBA Update on deadline for the SCA transition period