Readiness for PSD2 Requirements with Transmit Security

This technical brief outlines the requirements for compliance with the Payment Services Directive 2 (PSD2) and how Transmit Security facilitates adherence through enhanced identity services and multifactor authentication (MFA). PSD2 aims to improve payment security, reduce fraud, and foster innovation by mandating strong customer authentication (SCA) and enabling third-party access to consumer accounts via APIs with customer consent. The document details the specific requirements for SCA, including the necessity of using at least two independent authentication factors and the implementation of transaction monitoring capabilities to prevent fraud. It also discusses the importance of dynamic linking for online transactions, ensuring that authentication codes are unique to each transaction and tied to specific amounts and payees. The brief emphasizes the role of Transmit Security in providing robust solutions that meet these regulatory standards while enhancing user experience and security across digital banking services.