EU electronic payments safer and more innovative
The Commission has adopted rules that will make electronic payments in shops and online safer.
We have struck the delicate balance between security and convenience. Thanks to these new rules, there will be exciting new opportunities for all market players, old and new, to offer better consumer services. At the same time, the new rules will make electronic payments safer.” Said Valdis Dombrovskis, Vice-President in charge of Financial Stability, Financial Services and Capital Markets Union.
This will also allow consumers to access more convenient, cost-effective and innovative solutions offered by payment providers. These rules implement the EU’s 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. Today’s 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. 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). Today’s rules therefore have stringent, built-in security provisions to significantly reduce payment fraud levels and to protect the confidentiality of users’ financial data, especially relevant for online payments.