We live in a world of unforeseen consequences: the mobile phone camera killing the autograph, Donald Trump, Brexit, All these things have knock on effects that many probably didn’t consider at the time.
In the telemedia world PSD2 might also have some unforeseen consequences too – making charge to mobile a much more attractive proposition than it might have been.
As our story this week reveals, Visa and the European Banking Association (BSA) are up in arms that a little known stipulation of PSD2 is that something called strong customer authentication (SCA) is also going to be implemented – and that this could be the death knell for all sorts of one-click payment services.
The plans include a “one size fits all” approach where every online transaction over €10 will require additional steps at checkout such as entering passwords, codes or using a card reader.
In practical terms, the proposals would mean an end to express online checkouts for consumers. This would includes one-click checkouts even at stores where consumers shop regularly, and no more fast, automatic in-app payments where cards are already stored. Across Europe, express online checkouts currently make up half of all today’s total e-commerce sales, according to Visa’s data.
This could mean that many m-payments technologies will need to add extra steps to the payment process – something that already loses shoppers at checkout.
Charge to mobile, however, appears to be exempt and so suddenly it starts to look at lot more attractive as a way to pay – especially for things like car parks and the like.
It has yet to be tested and there are no doubt going to be ways around it for the other payment tools, but as what has been possibly the most crazy year comes to an end, it is good to dream that perhaps one of the last pieces of Euro-legislation to take effect is one that actually has some benefits.