7. Implementation of strong authentication in PSD 2

7.1 Presentation

The Second Payment Services Directive, or PSD 2, is a European regulation. According to the European Commission, its aim is to "foster innovation, competition and efficiency" in the market, and more specifically to "modernize payment services in Europe for the benefit of both consumers and businesses".

PSD 2 encourages the opening up of banks' information systems to new players (open banking). In this context, it aims to strengthen the security of online payments in order to combat fraud and cybercrime (identity theft). All online payment services within the Single Euro Payments Area (SEPA) are concerned: card and cardless payments, whether from a bank, a fintech (innovative financial services provider) or an e-merchant.

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