The European Banking Authority (EBA) published on June 21 its 5th annual Consumer Trends Report for the year 2016 which provides an overview of trends such as innovation in payments.
The reports set out the trends observed by the EBA and the issues that may arise. As the last year, new payments solutions raise concerns related to the lack of consumer awareness, the risk of fraud, the use of consumer data as well as the weak authentication requirements established by merchants or payment services providers, which results in a rise in fraud. The EBA reports that several respondents have denounced the authentication process for contactless debit and credit cards as well.
To address these security issues, the EBA commits to monitor innovation but it has as priority the implementation of the 11 mandates in the revised Payment Services Directive (PSD2) which cover a wide range of topics, including a further tightening of security requirements. If the risks arising from new payment solutions are not well covered by the PSD2, the EBA may decide to set additional regulatory or supervisory measures.