Andy Cory, identity management lead at KCOM, comments on the news that retailers and financial institutions are speaking out against the impending deadline for changes to the way online purchases are verified, and the risk that online shopping could become slow and difficult for consumers, in CCR Magazine:
“It’s not surprising that retailers and banks alike are voicing concern over the oncoming PSD2 online transaction deadline. The depth and complexity of both the infrastructure and the integration between platforms that are required to make confirming to the standards a reality mean that many companies simply aren’t ready.
“For customers to validate online purchases with biometrics or code entry, retailers and other third-party providers have to integrate their systems with multiple financial institutions and multiple endpoints. If that sounds complicated, it’s because it is.
“It’s essential that organisations have a granular plan for the whole process of integration. Retailers need to take the time to identify exactly what’s going to be required, where and how new APIs need to be both developed and consumed, and how the project will progress from start to finish. Effective planning is essential for a successful PSD2 integration project.
“The bottom line, though, is that many retailers and service providers just don’t have the expertise to put these regulatory requirements into place. In the digital age, we’re told that ‘all companies are tech companies’, but in reality, that’s not the case. Instead, retailers and service providers need to work with the right technology partners to ensure a smooth journey to compliance.
“By working with an integration expert that fully understands the complexity of PSD2 and a software vendor that can meet the technical requirements, organisations can minimise the stress and difficulty of integration, while at the same time optimising customer experience. Compliance with this regulation doesn’t have to be an anchor around retailers’ necks – they just need to work with the right partner.”