Wearables and PSD2 SCA

APRIL 25, 2023

Strong Customer Authentication (SCA)

Rules are in place that affect the way banks and other payment services providers check that the person requesting access to an account or trying to make a payment is permitted to do so.

The rules are intended to enhance the security of payments and limit fraud during this authentication process.

Authenticating Passive Wearables

In the case of wearables and SCA under PSD2, the same secure rules apply.

All electronic payments on – cards, mobiles, and wearables – are subject to Strong Customer Authentication (SCA)

Issuers can either perform SCA on wearables themselves or delegate SCA to the wearable service supplier.

If an issuer already connects to tokenisation schemes for Secure Element based devices such as those supporting Apple Pay®, then only minimal further technical integration is required to support the latest generation of passive wearables.

Supporting SCA on wearables is no harder than supporting SCA on Apple Pay.