HOT TOPICS IN PAYMENTS & SECURITY 2019
to be discussed in the framework of the Conference
The European Central Bank has launched an innovative pan-European service for settling electronic payments instantly. TARGET instant payment settlement (TIPS) uses central bank money to settle payments individually in less than 10 seconds. Banks across Europe can now follow the lead of France, Germany and Spain, which have already connected to TIPS by linking to the platform and developing user-friendly solutions that support the take-up of instant payments by appealing to both retailers and consumers. The price per instant payment transaction is set at €0.002 for the first two years of operation, with no charges for the first ten million payments settled by each TIPS participant up until the end of 2019.
By September 2019, the Regulatory Technical Standards (RTS) come into effect across the European Union. One of the major outcomes is the Strong Customer Authentication (SCA). The objective of SCA is to protect consumers across the European Union by implementing increased levels of security when accessing account details and making payments. SCA comes into effect when the client either accesses his/her account information online irrespective of the channel used or makes a payment. SCA requires Two Factor Authentication, consisting of at least 2 of the following:
- Something you know (Pin, password)
- Something you have (a card, mobile, token that generates a one time code)
- Something you are (biometrics – your fingerprints, face…)
The RTS define how access to the customers account is handled between ASPSPs, AISPs and PISPs.