Online Authentication Experts Warn Of Cyber Risks In EU Proposals For PSD2 Standards

Forcing banks to let financial technology (fintech) companies deliver payment services to their customers via their own user interfaces would put the security of customer data at risk, EU policy makers have been warned.

The Fast IDentity Online Alliance (FIDO Alliance) called on the European Commission (6-page / 182KB PDF) to rethink proposals it outlined earlier this year regarding new regulatory technical standards (RTS) on strong customer authentication and common and secure open standards of communications under the revised Payment Services Directive (PSD2).

PSD2 provides new rights to account information service providers (AISPs) and payment initiation service providers (PISPs) to access payment accounts and payment account information held by banks and other account servicing payment service providers (ASPSPs). The provisions are designed to enable those businesses, which have emerged onto the payment services market in recent years, to help consumers to