2Checkout granted PSD2 payment institution licence as pressure to delay SCA rise

Dutch National Bank has granted the American monetization platform 2Checkout a Revised Payment Service Directive (PSD2) payment institution licence.

Alex Hart, CEO at 2Checkout, said, “This license is a continuation of 2Checkout’s commitment to providing our merchants and their customers with safe, secure and convenient cross-border and domestic payment options as an integral part of our e-commerce monetization platform. It is a logical step in our drive to enable our merchants to maximize the value of every digital buyer and subscriber worldwide.”

PSD2 is a EU directive to boost the protection for people paying online, among other things. The final piece of the legislation is set to come into force in September this year.

However, regulators across the EU is facing increased pressure to delay the implementation of strong customer authentication (SCA), the part that would require customers to prove their identity in more ways to buy things online.

For instance, Tink, the Swedish open banking platform, has called on regulators to delay the implementation of the law as financial institutions around the EU do not seem ready for it.

As RegTech Analyst has previously reported, the European Banking Authority has stated that it might show some leniency in exceptional cases where businesses can prove they are working with relevant stakeholders to introduce new solutions to comply with PSD2.

Similarly, the Financial Conduct Authority announced that it will phase in the new SCA rules in Britain across 18 months after the September 14 deadline.

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