PSD2, Open Banking, and SCA (Strong Customer Authentication)

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PSD2 (Payment Services Directive 2) is an EU regulation designed to increase competition, enhance security, and enable open banking. It requires Strong Customer Authentication (SCA) for electronic payments, typically involving two-factor authentication to verify the payer’s identity.

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Open Banking allows consumers to share financial data securely with authorized third-party providers, facilitating innovative financial services like budgeting apps, payment initiation, and lending platforms. SCA reduces fraud risk and ensures that transactions are authorized by the legitimate account holder.

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Monavate incorporates PSD2 and SCA requirements, supporting secure authentication, account verification, and regulated payment flows. Its platform enables businesses to offer compliant digital payment services while leveraging open banking capabilities. By combining security with real-time monitoring and reporting, Monavate ensures that fintechs and businesses deliver both compliance and seamless user experiences.

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