How strong should customer authentication be?
Updated 28 November 2016
On 28 November we were co-signatories to an open letter sent to Commissioner Dombrovskis (the European Commissioner in charge of Financial Services and Financial Stability) setting out the key arguments in favour of retaining a risk-based approach to Strong Customer Authentication.
For more on this issue and how we can fix it, please read our article on Politico by Peter Bayley, our Chief Risk Officer, and find our Position Paper and Response to the EBA’s consultation, Visa Vision blog post and press release below:
Event: September 2016
To discuss the issue of the future of e-commerce in Europe, Visa and thinktank the Center for European Policy Studies (CEPS) brought together a panel of experts and a capacity audience in September 2016. We discussed the proposed new EU rules on electronic payments authentication or, put more simply, how we verify that the person who’s paying is the right person.
The clear consensus from the event was that the proposals of the European Banking Authority (EBA) on strong customer authentication won’t improve consumer security or convenience. The bottom line is that they may hamper the creation of a Digital Single Market in Europe.
Security and Convenience in payments: Can consumers have it all?
Event: Brussels, 10 February, 2016
With the digitisation of payments, new regulatory frameworks are emerging as legislators and regulators balance security with risk and assess the required levels of oversight and control. The European Banking Authority has been asked to develop standards for a consistent framework for all payment providers and users.
The Strong Consumer Authentication event, held in Brussels on 10 Feb 2016 was an opportunity to discuss how this might work.
For an in-depth analysis by Peter Bayley, our Chief Risk Officer, go to Politico.eu, the Brussels-based European edition of the global nonpartisan politics and policy news organisation.
Innovative Payments in the Digital Single Market
Event: 26 May 2015
On 26th May, Visa Europe and MLex hosted an exclusive event examining how innovative payments can support economic growth in the Digital Single Market. Held in the heart of Brussels, a full room enjoyed expert views from retailers, start-ups, media and thought leaders, joined by MEP Eva Paunova and Martin Bailey, acting head of DG Connect Digital Single Market Unit, European Commission.
Watch the Highlights
E-commerce: Security or Inconvenience
Regulation in the fast changing digital world
How can entrepreneurship and innovation be encouraged?
Meet the Experts
MEP Eva Paunova (BG, EPP): Member of IMCO and of the Digital Agenda Intergroup
Martin Bailey: Acting Head of Unit, Digital Single Market, DG Connect
Gary Stewart: Director, Wayra UK
Eva Kaily: Member of the European Parliament, Greece.
Read more about the discussion
During the course of the event, panellists hit on a number of key themes to drive economic growth through payments innovation, showing Visa Europe’s commitment to understanding and developing innovative payments that unlock growth in the Digital Single Market (DSM). Discussion explored the right balance between trust and convenience in e-payments to best serve consumers, what real innovation looks and feels like and how regulation can help innovation and entrepreneurship to flourish.
Whilst trust is fundamental, innovation to create an improved consumer experience is the driving force behind digital growth. This is because innovation’s primary purpose must be to create a product that people love and want to use, something ‘sticky’, as described by Gary Stewart from Wayra, Telefonica’s start-up accelerator.
Disruptive innovation changing markets, panellists discussed seeking regulatory innovation to cause positive disruption in how we govern markets. Something everyone is interested in, because of the speed and scale of digital change. It was really exciting to hear industry and regulators exploring together what smarter regulation looks like, not least assessing how more co-regulation and self-regulation can play a role in ensuring new regulation only intervenes where there are blockages to innovation.
At Visa Europe, we are committed to the journey and will continue to drive collaboration from the heart of industry, to help understand change and develop digital solutions to everyday life that can create growth across the Digital Single Market.
News coverage of Visa Europe's stance on EU legislation
A 5-part series published in the European Voice looks at the European Commission’s proposals to revise the Payments Services Directive (PSD2) and a Regulation on Interchange Fees for card-based transactions (IFR). They also reflect the findings from research conducted by Ipsos MORI in September 2014 amongst consumers and retailers in Italy, Germany and Belgium. The results reveal potential unintended consequences the proposals will have if adopted in their current form.
In an exclusive interview with viEUws, Peter Møller Jensen – Director EU and Government Relations/Regulatory Affairs at Visa Europe – discussed the impact of European Union legislation regulating card fees with MLex correspondent John Rega.