Payment Authentication Compliance Report
PSD2 Strong Customer Authentication Compliance Guide
New EBA guidance is reshaping authentication requirements, forcing payment providers to modernize security frameworks while minimizing customer friction.
By Daon | Regulatory Compliance Brief | Source: Daon

PSD2 Strong Customer Authentication has moved beyond regulatory interpretation into a critical operational requirement for payment providers across Europe.

The EBA’s latest opinion provides clearer guidance on compliant authentication methods while increasing pressure on organizations to accelerate implementation plans.

Organizations that align biometric and app-based authentication strategies today will be better positioned for compliance, fraud reduction, and customer experience optimization.

The clarification reduces uncertainty around acceptable authentication factors and strengthens the business case for modern identity verification technologies.

⚠ PSPs that fail to achieve SCA readiness risk transaction failures, revenue disruption, customer abandonment, and increased regulatory scrutiny within the next 12–18 months.

For payment leaders, authentication readiness now directly impacts digital commerce continuity, fraud prevention, and long-term competitive advantage.

  • Deploy compliant biometric authentication capabilities
  • Accelerate app-based authentication adoption
  • Develop regulator-approved migration roadmaps
  • Prepare infrastructure for 3DSecure 2.2 integration
  • Strengthen customer communication and onboarding plans

As regulators increase oversight, enterprise payment teams must balance compliance mandates with secure and frictionless customer experiences.

Enterprise PSD2 Compliance Readiness Assessment
Gain actionable insights into authentication risks, compliance gaps, and modernization priorities for payment and security teams.

✔ SCA compliance gap analysis
✔ Authentication strategy roadmap
✔ Payment ecosystem risk review
✔ Executive implementation recommendations
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