00 01 02 03 04 20 40 60 80 100 120 140 160 180 200

This preview shows page 31 - 34 out of 35 pages.

0.0 0.1 0.2 0.3 0.4 0 20 40 60 80 100 120 140 160 180 200 Interchange Fee (%) Transaction value (in National Currency) Regulation Spain Netherlands Italy Belgium VISA Interchange Fees in Europe, Debit
32 Annex II. Security Requirements Under PSD II The security requirements are underpinned by the Regulatory Technical Standards (RTS) on strong customer authentication (SCA) and common and secure communications (SCS) to be implement by end-2020. SCA. The regulation is a response to fraud in on-line transactions. It requires card-not-present authentication based on two or more elements categorized as knowledge (i.e., a PIN), possession (i.e., a smartphone), and inherence (i.e., fingerprint); while allowing exemptions for low-risk transactions. Card networks authentication have an optional additional security layer for on-line transactions (3D secure). To comply with SCA this industry standard is replacing a static password with tokens and biometrics, while introducing risk-based authentication with improved datasets. Fintech solutions could exploit big data to identify and prevent fraud (reducing chargebacks), and tailor authentication to reduce fraud while enhancing the customer’s experience. SCS. The RTS envisage two possible secure communication channels provided by the ASPSP to the AISP or PISP. The first is a dedicated communication interface with the same availability and performance as the customer’s interface. This is an Application Programming Interface (API) which takes a request from a third-party provider (TPP) and provides an answer. The second is by adapting the customer on- line banking interface, with the TPP accessing the customer’s account using their personalized security credentials with a secure authentication of the TPP. 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0 20 40 60 80 100 120 140 160 180 200 Fee value Transaction value United States (debit) Europe (debit) Europe (credit) Interchange Fees Regulation (National currency) Source: IMF Staff calculations.
33 Annex III. National Regulation for Crowdfunding and Selected Features of Dedicated Fintech Credit Policy Frameworks Table 1. National Laws and Regulations for Crowdfunding or Peer-to-Peer Lending Regulation Country (year the regulation came into force) New regulation in place Austria (2015), Belgium (2017), Finland (2016), France (2014), Greece (2016), Lithuania (2016), Portugal (2015), Spain (2015), United Kingdom (2014), Turkey (2017) New regulation under preparation Latvia, Sweden Amendments to existing regulations Italy, Israel Guidance, best practice Estonia, Germany Not specifically regulated Cyprus, Ireland, Luxembourg, Malta, Netherlands, Slovak Republic, Slovenia, Denmark, Iceland, Norway, Czech Republic, San Marino, Switzerland, Hungary, Poland, Bulgaria, Croatia, Romania, Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, Serbia, Belarus, Moldova, Russia, Ukraine Sources: European Crowdfunding Network (2017), McLean and Miller (2018), and various websites.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture