Chip and PIN for eBanking – SEPA will help drive this…

The Single Euro Payments Area (SEPA) is the area where citizens, companies and other economic participants can make and receive payments in euro, within Europe, whether within or across national boundaries under the same basic conditions, rights and obligations, regardless of their location. The geographical scope of SEPA encompasses the 27 EU member states, Iceland, Liechtenstein, Norway, Switzerland and Monaco. The progess can be seen here.

With the roll-out of the SEPA scheme European banks are the first in the world to deploy a new global data format — the ISO 20022 message standards — for mass euro payment transactions. This innovation is likely to have an impact far beyond Europe, as corporate and banks in Asia and in the Americas have already started to realise the global implications of 32 countries moving jointly towards this international standard.

“The Single Euro Payments Area (SEPA) is the area where citizens, companies and other economic participants can make and receive payments in euro, within Europe, whether within or across national boundaries under the same basic conditions, rights and obligations, regardless of their location. “

SEPA reinforces the usage of Chip and PIN (EMV-technology), being the selected supporting technology for the SEPA Card Framework (SCF). Payment institutions and national communities are completing the roll out of the Chip and PIN, where magstripe based transactions are compliant in a transition phase between 1 January 2008 to 31 December 2010 (transition phase). All schemes will have introduced a liability shift rule and other incentivising measures to encourage the EMV  migration.

This means that any card in Europe that is a generic payment instrument (can be used in an ATM/POS), except for closed loop such as loyalty is mandated to follow SEPA Card Framework.

Another effect of SEPA is that the business case of remote authentication using Chip and PIN is becoming even stronger, as each Citizen carrying a bank card could conveniently use his card to authenticate himself for eBanking and eCommerce using a Chip and PIN reader, making his online interactions more secure.

The trend is that transaction authentication is the future and technologies such as Dynamic Signature and Sign-What-You-See 2.0 provides transaction authentication.

Having a secure online channel, you as bank can continue to build trustful new and services for your customer. Dynamic Signature enable the user to do secure eBanking eCommerce and also transaction banking using an unconnected Chip and PIN reader. Sign-What-You-See 2.0 enable the bank to secure the last mile, using XML document, enable the bank customer to sign a any kind of transaction or electronic document.

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~ by petergullberg on February 10, 2010.

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