PSD2: Advent of the New Payments Market in Europe

Online merchants need to prepare for PSD2 and assess the SCA requirements’ impact on the customer journey.

London, 13 March 2019 – The European payments market is preparing to comply with the revised Payment Services Directive. The directive’s requirements for strong customer authentication may affect online merchants by increasing friction in the payment process. But PSD2 also dictates that banks have to provide third-party access to their customers’ accounts. If this access allows merchants and their providers to develop new payment models, could PSD2 also represent an opportunity?

This report illuminates the main changes that PSD2 may bring to the e-commerce payment market in Europe. The report recommends ways online merchants can reduce the impact of strong customer authentication on the customer journey, and analyzes the potential for payment innovation enabled by PSD2. It is based on a joint analysis by Aite Group and iovation of the European payments market. For the primary research for this report, Aite Group conducted 21 interviews between November 2018 and January 2019 with payment executives in Europe.

This 35-page Impact Report contains eight figures and six tables. Clients of Aite Group’s Fraud & AML service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions Amazon, Berlin Group, Braintree, Credit Kudos, Deutsche Bank, EMVCo, Facebook, Google, International Air Transport Association, Klarna, Mastercard, Mobey Forum, PayPal, Paysafe, Sofort, STET, Stripe,, Trustly, and Visa.

Related Content

Get Summary Report

"*" indicates required fields

This field is for validation purposes and should be left unchanged.