Across the European Union (EU), technology providers and social media platforms are increasingly playing a bigger role in the Open Banking ecosystem. At the same time, however, many players, like Facebook and Google, are squaring off against regulators that are looking at their data and payment policies with more scrutiny.
In the latest PSD2 Tracker™, PYMNTS examines how companies, merchants and eCommerce platforms are repositioning themselves, and developing new ways to participate in the financial ecosystem while staying compliant.
Companies like Facebook are currently embroiled in an upwards of 10 GDPR investigations across several different markets, all of which are questioning the way data is handled by social media platforms.
Meanwhile, technology companies like Microsoft are dealing with GDPR investigations of their own. The European Data Protection Supervisor (EDPS) is analyzing some of the software deals the company has made within the EU to make sure these deals are fully compliant with GDPR.
Furthermore, banks are still working on enabling access to siloed data. U.K. bank HSBC is among those expanding their API portals for developers, allowing them to create new ways to work with other banks and third parties.
Partnership is Key to PSD2 and SCA Compliance for Marketplaces, says OnBuy
While merchants and eCommerce platforms have come to terms with the broader effects of PSD2, companies in this space need to brace for further changes. With the deadline for Strong Customer Authentication (SCA) fast approaching, merchants and eCommerce platforms need to innovate their customer authentication processes.
U.K.-based eCommerce marketplace OnBuy, for one, is choosing to partner with players that can shore up their authentication compliance without the need for costly innovations. PYMNTS caught up with OnBuy Founder and Managing Director Cas Paton to discuss the challenges of SCA compliance.
To learn more, visit the Tracker’s feature story.
Social Media Sites and Payment Innovations Under PSD2 and GDPR
Through ongoing GDPR investigations, and all the necessary changes to data and customer relationships, many social media firms are determined to claim a foothold in the EU payments world. Companies like Facebook are moving quickly to ensure that they’re able to process payments from EU consumers by recently receiving a payments license from the Bank of Lithuania.
Social media sites are tightening their grip on payments as PSD2 opens the door for third-party companies. Boosted by the fact that they already have efficient mobile platforms and large consumer bases, these firms could significantly change the way customers make transactions online.
To learn more about the payment innovations these sites are making, visit the Tracker’s Deep Dive.
About the Tracker