- March 11, 2019
- Posted by: fiserconsulting
- Category: News Item, Open Banking, Technology, Technology Change
Adyen has launched a new alternative service for card transactions under the Payment Service Directive (PSD2). Similar to the current process, the offering requires banks to create APIs for approved third parties in order to initiate payments on the consumer’s side.
The platform’s latest service is going to launch in the UK, while there is a chance other European markets will also follow the trend. The solution works similar to current online banking methods: customers select the payment type at the checkout, after which they are redirected to their bank’s online banking environment to confirm the payment.
The specific banking environment then puts forward the customer’s preferred method of authentication (i.e. Face ID, Touch ID) enabling direct authorization between the shopper and the merchant, while Adyen handles the payment flow as a recognized third party.
The Open Banking offering makes Adyen the first provider to offer multiple payment options in a secure environment. Shortly after the roll-out in the UK market, other parties have shown great interest in the solution and are preparing a roll-out of the offering.
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