Product
SCA readiness: building infrastructure for regulatory compliance
Starting in September, new regulatory requirements called Strong Customer Authentication (SCA) will be rolled out for businesses who have customers in Europe. SCA is a pillar of the EU’s second Payment Services Directive (PSD2) and will require two-factor authentication on most payments made by European customers in an effort to decrease online fraud. Complying with SCA will be complex, as it will be implemented differently by individual banks and payment providers across Europe. And beyond the compliance burden, these new rules will also come with a cost—the new authentication step can add friction to checkout, reducing conversion.