PSD2 or the revised version of PSD (Payment Service Directive) is a European directive that comes into force on September 14th 2019. Briefly summarising, PSD2 states that it is no longer sufficient to simply ask for a client’s credit card for online transactions, but rather a double authentication (known as SCA or Strong Customer Authentication) is now required to authorise the transaction.

PSD2 aims, among other objectives, to make e-commerce safer and friendlier, facilitating authentication processes in order to accept new formats such as biometrics or mobile payments instead of card payments.

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