PSD2 will bring changes to online banking, BPFI warns consumers

26 Aug 2019381 Views

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The second European Payment Services Directive (PSD2) is due to be rolled out in the coming weeks, introducing enhanced security for online payments.

The Banking and Payment Federation Ireland (BPFI) has warned consumers to be prepared for impending changes in how they can access and use online and mobile banking services as the second European Payments Services Directive (PSD2) looms.

The changes, expected to be rolled out after the 14 September deadline, will provide increased protection for consumers and businesses by adding extra layers of security and reducing fraud.

The increased security measures, known as strong customer authentication (SCA), will manifest in varying ways depending on which provider a person banks with. However, there will likely be an additional security step before customers can access online accounts.

Customers will be advised in coming weeks by their banks with regard to any actions they may need to take in advance of the new regulations being implemented, such as registering or updating their mobile phone number or downloading an updated version of their banking app.

Speaking at the launch of a new BPFI awareness campaign, Gill Murphy, the organisation’s head of payment schemes, said: “It is vital that consumers take the time to carefully read the information provided by their bank in relation to PSD2.

“This information will outline what changes customers can expect as well as any actions that they may need to take in order to ensure continued access to their online accounts without interruption. It is important to remember that these changes are being introduced across Europe to help counter fraud and provide better protection for consumers and their online accounts.”

PSD2 will also introduce what is known as Open Banking, which will provide consumers with some new services, such as being able to pay directly from a bank account as an alternative to a debit or credit card. Users will also be allowed to use services that show a single view of their online banking accounts across different institutions.

The BPFI will be running a radio and social media campaign in the lead up to the deadline, and interested parties are urged to check out the informational website to learn more.

Eva Short is a Journalist at Siliconrepublic.com

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