In compliance with PSD2PSD2 stands for Payment Services Directive 2 and is a new EU regulation in effect since September 14, 2019. It governs electronic and other non-cash payments.
The main provision of PSD2 is for Strong Customer Authentication (SCA), a process that seeks to make online payments more secure and reduce fraud while increasing authorisation rates.
The European Banking Authority (EBA) recently extended the deadline for PSD2 compliance until December 31, 2020., the instructions provided here are specifically designed for third-party provider (TPPThird-Party Provider – an authorised online service provider introduced as part of Open Banking. TPPs exist outside of the account holder’s relationship with their bank but may be involved in transactions carried out by the user.)
Intended for developers familiar with embedding external SDKs within their application framework, the guidance presented here introduces you to the Token-supported services offered, shows you how to enroll (onboard) with Token as a registered TPP, then guides you through what's necessary to enable the
Remember, the SDK is essentially a library that assists you with shortcuts for developing code to communicate via API with
- Develop a clear game plan. The goal is to extend and expand your current application with real-time open banking functionality. Its value-added potential notwithstanding, before touching any new code, make sure you have a clear game plan. In relation to your existing application and system, ask yourself:
What are the metrics that determine SDK integration success?
How should these metrics be analyzed and recorded?
You shouldn't consider yourself ready to install, vet and test the SDK until you determine your overall integration strategy and how the SDK fits into your current processing paradigm.
- Commit time to review the SDK documentation provided. Before diving headlong into SDK integration, it’s important to keep in mind that Introducing new code into any environment carries a degree of risk. Most of these risks are mitigated by a clear understanding of what's required and when. Review the
Token-provided SDK documentation thoroughly, then make sure all prerequisites are met before continuing.
Your review should mainly focus on project-versus-SDK dependencies and how to accommodate them. Completing this exercise will help you maximize the benefits and minimize issues in the long run.