Banks, Fintech and online merchants should carefully review their payments strategies and upcoming market shift in alternative payments methods, to ensure they are well-positioned to take advantage of the change.
Third Party Plugin Systems (TPPS) | Access to Accounts (XS2A)
There is continues focus by regulators and ECB in Euro zone to develop a unified payment service with fosters competition, innovation and security, and PSD2 will be a big next step towards achieving this vision.
These developments further open up discussion on most debated topic of PSD2 - XS2A- the provisions for third party ‘access to account’ i.e. open up access to payment account information to third parties (TPPs).
Third party Plugin System or Access to accounts comes with a lot of questions such as:
How can you secure the access?
Who is responsible after your clients gave permission to a third party?
What to do with forgotten persons?
How can we verify the real identity of the person who gave permission?
Permission given, only once or permanent?
Biometrics can be a solution to the 'New' rules and can help your company and clients to give secure access using biometric technology to third party systems, permanent or onetime access.