A brief explanation of PSD2

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PSD2 Initial Overview
Since its entry into force in 2019, PSD2 has remained a high priority guideline for online activities. Combined with the European framework, this legislation explicitly targets secure online payments. It is a revolution with a capital R for the digital world. Understand this well.

So, what is PSD2 really? The Payment Services Directive 2 (PSD2) is a European regulation that aims to strengthen the security of online banking transactions while encouraging competition in the European payments market.

Strengthen authentication
One of the flagship initiatives of this new directive is the strengthening of strong czech republic number screening customer authentication (SCA). This approach aims to validate payments by double-checking information.

Impacts of PSD2 on businesses
Indeed, the implications of PSD2 are numerous for financial institutions, online payment companies and all online businesses. Here are some previews.

Greater customer safety and trust
One of the main advantages of PSD2 is to increase the security of financial transactions . Indeed, the effective implementation of strong customer authentication should strengthen consumer confidence in online transactions.

Impact on conversion rate
One of the main risks to consider is that SPD2 could increase the time it takes to complete a payment, which could then impact online conversion rates.

Consequences of PSD2 for consumers
Strong customer authentication has a direct impact on the user experience. This is not without difficulties for the consumer, but it also brings benefits.