Bank Services: Payments

Treasury written question – answered on 22nd July 2019.

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Photo of Gill Furniss Gill Furniss Shadow Minister (Business, Energy and Industrial Strategy) (Steel, Postal Affairs and Consumer Protection)

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential effect on (a) consumers and (b) businesses of the September 2019 deadline for the introduction of multi-factor authentication on electronic payments.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The implementation of Strong Customer Authentication, which mandates two-factor authentication for some online payments, will introduce more secure payments for individuals and businesses.

This was introduced by the second Payment Services Directive. HM Treasury published an impact assessment on the implementation of this EU directive in 2017.

In an Opinion published on 21 June, the European Banking Authority (EBA) acknowledged the complexity of payments markets and the practical challenges arising from the changes that are required by Strong Customer Authentication across the EU, which may lead to some actors in the payments chain not being ready by 14 September 2019.

The FCA is therefore working closely with industry to develop a migration plan to implement Strong Customer Authentication in a timely and effective manner.

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