‘Redirection’ Not Banned Under PSD2, Reiterates Commission

European officials have downplayed industry fears that authenticating users of third-party providers (TPPs) via a "redirect" model could be outlawed by incoming security rules.

Eleventh-hour changes to regulatory technical standards that will accompany the revised Payment Services Directive (PSD2) cited redirection as a potential illegal obstacle to third parties.

The practice — where a user is forwarded onto their bank’s website or app to input login credentials directly — had been fiercely resisted by existing TPPs, which argued it would result in a fragmented or confusing user experience.

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