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PSD2 (Part 1): The Revolution of E-Commerce
2 years ago by Jack Evangelides

PSD2 (Part 1): The Revolution of E-Commerce

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Stay ahead of the game with the pending commencement of PSD2; understand its unlimited capabilities and the innovation behind this new revolutionary technology. An e-commerce experience that provides: efficiency, transparency, speed and the fundamental and game-changing feature, enhanced security. PSD2 is paving the way for payments innovation. 

What is PSD2?

PSD2 is, simply, the Second Payment Services Directive, but what does this mean? Affecting e-commerce, PSD2 outlines new potentials when making online payments between customer and merchant (for example, eBay). It decentralises the monopoly on user data from banks and allows merchants to retrieve account data (in the form of a token) from your bank - with your permission of course. PSD2 is offering enhanced security in the form of identity checks when participating in online payments and, furthermore, it is attempting to prohibit the use of non-transparent pricing methods for international payments. PSD2 "serves as an onramp for future e-digital banking initiatives," (Andreasyan, 2017). This innovation may be the future of e-commerce with great potentials to be reached. 

Token and Tokenization

The process of tokenization is an in-depth security measure to make sure that your online payments are secure, and, more importantly, a countermeasure to any fraudulent activity. A token is an algorithmically generated and encrypted code that 'replaces' your sensitive data. This token is then distributed through the internet and other networks needed to process a payment without exposing any details. All sensitive data from payment is stored in a secure token vault, the Fort Knox of e-commerce. Tokenization aims to prevent the duplication of consumers banking details, fighting online and all digital breaches. 

When is it Released and What Can We Offer?

PSD2 was constructed by countries of the European Union and it has been developing since 2015 but is set to be finally implemented by 2018/2019. Brace yourselves for the inevitable revolution of e-commerce. Here at Cedar Rose we work with, potentially, the largest and most comprehensive database containing a copious amount of sensitive data. Henceforward, security and privacy are at the core of our ethos. Cedar Rose offers Electronic Identity Verification (EIDV) providing access, via API, for instant (in real-time) and precise identity verification data on individuals and companies. This tool can help mitigate risks such as:

  1. Identity Theft

  2. Negative Verification

  3. Social Identity Claims

  4. Fraudulent Activity
We are proudly, the first identity verification service for the Middle East and Russia. Contact us at order@cedar-rose.com for further information in regards to the second Payment Services Directive or Electronic Identity Verification and any other enquiries that you may have. 

Bibliography Andreasyan, T. (2017, November 20). Fiorano launches PSD2 solution for banks. Retrieved September 17, 2018, from Banking Tech: https://www.bankingtech.com/2017/11/fiorano-launches-psd2-solution-for-banks/ Sourced 

Image: Pixabay

 *** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***

  • PSD2
  • e-commerce
  • eKYC
  • eIDV
  • Identity Verification
  • eKYB
  • Tokenization