The deadline for PSD2 SCA is approaching – in less than four months, which means big changes are coming in the digital commerce world. Much like EMV® 3-D Secure, PSD2 SCA utilizes data to make a difference, and to make life easier for merchants, issuers and consumers.
First, a quick review. The Strong Customer Authentication (SCA) requirement within the PSD2 mandate stipulates that authentication during a transaction must include two of the following three elements:
- Something only the customer has (like a mobile phone)
- Something only the customer knows (like a passcode)
- Something only the customer is (like a biometric)
The crucial element here is the requirement for consumers to use something they are. This means that PSD2 SCA will utilize biometrics, in the form of fingerprint technology and, possibly, facial recognition, too. This particular authentication method requires the use of several different data points behind the scenes for it to be effective.
When we’re dealing with biometrics, the issuer has to analyze the underlying data behind a consumer’s fingerprint or facial scan quickly and efficiently, to provide them with the best possible experience. While this can be a difficult task, it’s the reason that these biometrics provide such a high level of security for consumers during their transactions.
We know that the data landscape in our industry is changing every day, mostly for the better. PSD2 SCA is playing an active role in that transformation. We are as excited as anyone to see this evolution play out.
EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.