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  • user 3:35 pm on July 20, 2018 Permalink | Reply
    Tags: balance, , Biometrics, , , , , ,   

    How will biometrics balance payment security & convenience under PSD2? 

    The European Union’s new regulations, the General Data Protection Regulation (GDPR) and Second Services Directive (), require secure transactions and data handling as well as good customer experience. PSD2, in particular, requires strong customer authentication (SCA) methods, which dictate “two-factor authentication” to ensure all payment approvals are in place. Two-factor authentication means that authentication of a customer’s identity must be based on two or more of these elements: knowledge (something the user knows), possession (something only the user has) and inherence (something the user is).

    The strict PSD2 RTS requirements may lead to friction in the payments process in online and POS (point-of-sales) checkout. Existing SCA methods such as SMS-TAN and iTAN will be considered non-compliant and not user-friendly. However, PSD2 aims to improve user experience and keep —namely inherence. Inherence is the element that allows leveraging of biometric data and mechanisms for SCA.

    Technological advancements are augmenting e-commerce payments and payments innovation methods, which further enhance the consumer appetite for seamless, frictionless and secure payments experiences. is one of the latest and most cutting-edge technologies being adopted. It’s usually integrated into applications to strengthen security and curb identity fraud. Fingerprint payment is the most common biometric payment method; however, experts predict that other systems—including face, eye and voice recognition—will become more widespread over time. The question is, are these mechanisms compliant with the new regulations and what do need to consider about biometrics in a highly regulated business?

    The RTS indicates the following high-level criteria must be applied while assessing whether an authentication method qualifies as SCA:

    • Dynamic linking: All information about the amount paid and payment recipient must be passed on across all phases of the authentication. For biometrics, the numerical representation generated from the data points collected at the customer’s device needs to be dynamically linked.
    • Independence of channels: The channel used for the initiation of a payment or account information transaction must be separate from the channel used for the receipt of the authentication code.
    • Creation and validation within the bank’s environment: For biometrics, the creation of the templates needs to be performed in the bank’s environment. The software that collects data points from the device must also be provided by the bank.
    • Underivable authentication codes: The biometric data points collected from the device must be changed in such a way that every data point package can be considered a new “authentication code”, which is unique for every request and, at the same time, is capable of being verified by the bank in the matching process.
    • Non-disclosure: Biometric data points or raw data and matching templates must not be stored in the device or the bank to prevent reverse engineering of the raw biometric data.

    Customers and banks are keen to use biometrics

    Consumers are inclined toward using biometric solutions to protect their transactions because of their and speedy authentication process—and more and more banks are adopting biometric as part of their identity verification process to improve user experience. The future of biometrics in the online payment process is promising.

    Innovation in biometric technology

    New technologies are now enabling rapid innovation in two areas of biometrics: visual biometrics (face recognition, fingerprints, finger-vein, hand/finger geometry and iris/retina recognition) and behavioral biometrics (dynamic signature verification, keystroke dynamics and voice recognition). Alongside the emergence of these new modalities, other innovations are also in development:

    • Biometrics as a Service (BaaS), which is based on sharing data with a remote server holding a centralized biometric database and offering biometric-based authentication as a service over the internet.
    • Biometrics and the Internet of Things (IoT), which enhances security for the millions of new devices joining an IoT network by combining passwords with an additional layer to achieve two-factor authentication.

    As biometric solutions gain momentum and uptake, they face challenges associated with their implementation, such as the need to comply with the PSD2 RTS requirements, technology to ensure the solution’s functionality and security, and the need to develop an ecosystem in which biometric methods are used in a consistent and standardized way, across multiple markets benefitting from network effects.

    Though not without its obstacles, adopting biometric payments provides a future roadmap for a seamless, safe and frictionless payments experience. It will be interesting to see how biometrics develops in the coming years, adapting to customer expectations and overcoming the hurdles of implementation.

    The post How will biometrics balance payment security &038; convenience under PSD2? appeared first on Accenture Banking Blog.

    Accenture Banking Blog

  • user 12:19 pm on March 20, 2018 Permalink | Reply
    Tags: Biometrics, , , ,   

    The Future of Biometrics in NextGen Payments [VIDEO] 

    How will consumers use for in the ? With the advance of face, finger, and voice identification, biometric technologies will be integrated with IoT devices to provide a better customer payment experience. This was the message from the Mobile Payments panel at Bank Innovation 2018, where payment experts like Ashish Tajpuria, senior vice …Read More
    Bank Innovation

  • user 12:18 pm on December 22, 2017 Permalink | Reply
    Tags: ‘Impactful’, , Biometrics, , , ,   

    2018 is The Year Mastercard Will Make Biometrics ‘Impactful’ 

    EXCLUSIVE— have been a buzzword for a while now, but is where companies like are going to start the real work. That means focusing on the smaller details and the platforms that will actively bring the to consumers, Bob Reany, EVP of identity solutions, Mastercard told Bank Innovation. “We have to [&;]
    Bank Innovation

  • user 12:18 pm on November 28, 2016 Permalink | Reply
    Tags: Behavioral, Biometrics, Circles, , OneUpping, Recognition   

    Behavioral Recognition Is One-Upping Biometrics in Cybersecurity Circles 

    Scanning a thumbprint to access your bank account seems completely safe, right? Well, a notorious German hacker names Jan Krisller – a.k.a. Starbug – demonstrated how easy it is to duplicate a fingerprint or even an iris, using a high-res photo. He used Angela Merkel’s photo. Other hacks have foiled fingerprintRead More
    Bank Innovation

  • user 12:40 am on October 19, 2016 Permalink | Reply
    Tags: Biometrics, , , , ,   

    Blockchain Biometrics Startup Raises $3 Million in New Funding 

    A aiming to bridge the worlds of tech and biometric security has raised $ 3m in new .



  • user 12:18 pm on September 12, 2016 Permalink | Reply
    Tags: , , Biometrics, , FinovateFall, ,   

    FinovateFall Day 1: APIs, Biometrics, Big Data Analytics 

    It’s that time of year again! Today debuted in New York, where thirty-nine companies debuted their newest toys to an appreciative, fintech-hungry audience. The presented ranged from the latest in , including voice and facial recognition, the latest in how to create insights for big use&;andRead More
    Bank Innovation

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