Strong customer authentication (SCA) is a requirement of PSD2 regulation in Europe, that went into effect from September 14, 2019.
The requirement ensures that electronic payments are performed with multi-factor authentication to increase the security of electronic payments. Card payments require a different user experience, namely 3D Secure, to meet SCA requirements. Banks may decline transactions that don’t follow the new authentication guidelines.
G+D Mobile Security has developed a new solution for using bank cards with EMV chips for Strong Customer Authentication (SCA). With Convego tap, customers simply activate their cards by tapping them against their smartphone.
The new Convego tap solution by G+D Mobile Security is available for Android smartphones and opens up many innovative use cases. Initial user registration into banking apps is a potential weak link, but with Convego tap, two-factor authentication can be easily applied. Another example use case could be the activation of newly issued bank cards – when a customer receives a new bank card, they can activate it effortlessly by simply touching it against a smartphone. The bank’s app on the device then reads the token stored on the EMV chip and the card is ready for use. The solution can also be used for authentication of online transactions or as a means of simple but secure step-up authentication.
Customers can also use their bank card for the two-factor authentication of bank transfers. The first factor could be a PIN for online banking, while, as the second factor, Convego tap provides proof that a customer is in possession of the bank card. The technology meets legal requirements for two-factor authentication such as PSD2, supports FIDO-compliant authentication solutions, and can be used to authorize high-value transactions via hardware security.
Bank customers also benefit from the combined convenience and high level of security that the new solution provides. There is no longer any need to wait in line at a bank counter or ATM in order to activate a new card. Moreover, online banking requires no additional hardware, while fussy TAN and one-time password generators or apps become superfluous.
Banks don’t need to modify or replace previously issued cards for the new method. Furthermore, there is no cost for additional hardware or short messages. Convego tap thus currently represents the most cost-effective means of providing bank customers with hardware-based security for online authentication.
“For banks, it is not only important to provide customers with security, but also to offer the best payment experience,” explains Jukka Yliuntinen, Head of Digital Solutions at G+D Mobile Security. “Our unique solution combines ease of use, a high level of security, and great cost-efficiency in an unprecedented manner. Since existing cards can also be used for secure authentication in a similar way as for contactless payments, end users profit as much as banks do.”
About G+D Mobile Security
G+D Mobile Security is a global mobile security technology company headquartered in Munich, Germany. The company is part of the Giesecke+Devrient group. G+D Mobile Security has a workforce of 5,300 employees and generated sales of EUR 877 m in the 2019 fiscal year. More than 40 sales and partner offices as well as 20+ certified production and personalization sites and data centers ensure customer proximity worldwide.
G+D Mobile Security manages and secures billions of digital identities throughout their entire life cycle. Our products and solutions are used by commercial banks, mobile network operators, car and mobile device manufacturers, business enterprises, transit authorities and health insurances and their customers every day to secure payment, communication and device-to-device interaction. G+D Mobile Security is a technology leader in its markets and holds a strong competitive position. For more information, please visit: https://www.gi-de.com/de/de/mobile-security
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