Strong authentication via smartphones is available today in many countries. GSMA’s Mobile Connect specification can improve security and help banks and third party providers comply with the EU’s Revised Payment Service Directive (PSD2).
Mobile Connect is a mobile phone-based strong authentication solution available today in Finland, France, Italy, Spain, Switzerland, and the UK; from Mobile Network Operators (MNOs) such as O2, Orange, Swisscom, Telefonica, Telia Carrier, and Vodafone. It can be deployed relatively easily, due to the open standard SDKs.
Mobile connect is suitable for any mobile app that needs better authentication than weak passwords. Thus, we recommend that mobile app developers and platform providers consider Mobile Connect as an authentication solution.
Given that PSD2 will take effect in the EU in 2018, banks and financial third party providers (TPPs) should begin taking steps now to implement Mobile Connect as a strong customer authentication (SCA) method.
To become an EU-wide PSD2 solution, more MNOs across the EU should adopt the Mobile Connect standard, so that banks and financial service providers can offer this as an option for SCA.