Rhett Ohlsen

Biometric authentication is a key part of modern identity verification. As fraud evolves and onboarding scales across global markets, organizations require methods that confirm a real person is present and that the individual aligns with the identity verified during enrollment. Biometrics support these requirements by measuring unique traits that are difficult to imitate.

The European Commission’s June 28, 2023, proposal for a third Payment Services Directive (PSD3) presents an opportunity to increase payments security, open the door to further innovation and enhance industry standardization. The initiative is part of a larger global trend toward open finance and increasing competition across financial sectors. According to the commission, PSD3 will prepare the EU’s financial sector for ongoing digital transformation and its opportunities and risks.

Regulatory compliance tops the priority list for payment service providers but presents layers of local, regional and international complexity. Regulations vary among countries and financial institutions and can shift depending on payment method, amount and purpose. Cross-border payments can complicate compliance further with a mixed bag of legal requirements and payment systems. Regulatory technology can help payment service providers simplify and adapt to markets around the world.