Security vs. convenience in payments: Insights into SCA from Merchant Risk Council London

Merchant Risk Council events are some of the best places to discuss the challenges and opportunities facing the payments sector, from open banking and borderless payments to blockchain and virtual marketplaces.

The same issue at the top of every agenda

One topic that dominated this month's Merchant Risk Council London was Strong Customer Authentication (SCA), part of the PSD2 regulations. SCA is the new regulation for authenticating online payments, and will be rolled out across the European Economic Area (EEA) on the 14 September.

SCA has been put in place to increase security for payers and reduce payer fraud as well.

SCA consists of a 2-factor authentication that will apply to all electronic (online) payments.

  • Knowledge: Something only the user knows, such as a password
  • Possession: Something only the user possesses, such as a token or a mobile phone
  • Inherence: Something the user is, such as a biometric (eg. Fingerprint, Face ID)

We talked about SCA with players from across the payments landscape, both at the event itself and at a roundtable dinner we hosted on the topic.

This article looks at three key topics that emerged from those discussions.

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