PSD2 Strong Customer Authentication Solutions



As the industry’s journey to PSD2 compliance continues and Strong Customer Authentication (SCA) requirements become fully mandated in more and more countries, we’re sharing the best ways for organizations to quickly tackle their SCA challenges and meet compliance targets.

But no need to worry.

We’ve built a great resource to help you get started.




Daon offers solutions for PSD2 Strong Customer Authentication requirements that won’t compromise customer convenience.

Strong Customer Authentication - PSD2, Daon


More than a mandate, PSD2 Strong Customer Authentication is an extraordinary opportunity for banks and payment service providers to differentiate themselves by offering a better payment experience than their competitors.

Strong Customer Authentication - PSD2


But organizations will need to move quickly to achieve compliance and ensure that customers have a seamless payment experience. And we’re here to help.

Strong Customer Authentication - PSD2, Daon

Why PSD2?

The goals of PSD2 and strong customer authentication are to:

  • Make payments safer and more secure

  • Protect consumers from fraud

  • Make the European payments market more integrated and efficient


PSD2 regulation impacts financial infrastructure for banks, fintechs, and businesses using payment data for the benefits of consumers.

                       Phone image1

PSD2 and strong customer authentication - Double down on security with 2‑factor authentication

With people around the world increasingly conducting their banking operations online, innovative banking services are flourishing.

The growth of online and mobile payments has also been accompanied by the dramatic growth of internet fraud. Banking customers expect convenience but are not willing to trade away security in the process.

Banks around Europe are facing the challenge of implementing the revised Payment Services Directive (PSD2).

PSD2 - Strong Customer Authentication, means that transactions are authenticated using two or more of the following elements:

  • Knowledge (something the user knows—a PIN/ password or other knowledge element)
  • Possession (something user possesses)
  • Inherence (something the user is—a biometric)

In the case of remote payments PSD2 compliance also requires the creation of a dynamic link.

Daon and PSD2

Daon’s IdentityX is the core component in a best-of-breed strong customer authentication solution, ensuring strong and secure user authentication. It places your customer’s human identity at the center of each transaction through adaptive, intelligent combinations of biometric and non-biometric factors.

In our standard IdentityX configuration, Daon securely stores a cryptographic token (key) on a user’s mobile device during the enrollment process. This unique identifier is now “something the user has,” providing the first user authentication factor in a strong customer authentication system.

Depending on the capabilities of the user’s device, the needs of the organization and other considerations, IdentityX then asks for something the user knows (PIN, Password, OTP) and/or something the user is (face, voice, fingerprint, or combination of biometrics).

The simultaneous combination of multiple biometric and non-biometric factors creates the strongest possible security while preserving a fast, flexible and delightful user authentication experience.

Ready to get started?

We’ve got the perfect resource to help keep things simple.

Strong Customer Authentication - PSD2, Daon, line


Or check out our White Paper for an even more detailed look at biometrics in PSD2.

Strong Customer Authentication - PSD2, Daon