PSD2 Compliance


Stay in compliance with PSD2 while reducing authentication friction and fraud rates with Simility

Banks and other payment service providers that do business in Europe are being required to implement a number of new initiatives due to new legislation, such as Payment Services Directive No. 2 (PSD2). While new regulations will enhance security and fraud prevention, they also present a number of new challenges to financial institutions.

Challenges Created by PSD2

Open Banking
Increases Risks

PSD2 requires financial institutions to provide an open banking API. This allows third parties such as Amazon to access sensitive financial data and take payments directly from a customer’s bank account, without the need of an intermediary like PayPal or Visa. The security implications of this open API cannot be understated, and many financial institutions are struggling to appropriately provide new levels of security to safeguard these new, open access requirements.

Strong Customer Authentication (SCA) Degrades Customer Experience

PSD2 also mandates two-factor authentication for transactions, unless a specific set of low-risk criteria is met. However, most users resist the additional authentication steps and will avoid organizations that use it, gravitating instead toward institutions that reduce or eliminate SCA requirements by proving the transactions are low-risk. Unfortunately, meeting PSD2 requirements to prove a transaction is low-risk is difficult. Most financial institutions will have no choice but to force customers and consumers to perform SCA.


New, Stringent Monitoring and Reporting Requirements are Difficult to Achieve

PSD2 includes exemptions from requiring SCA. These exemptions dramatically improve the customer experience, but they require providers to monitor and record specific data and risks surrounding each transaction, and to generate reports showing this information. This data is difficult for most providers to obtain.

How Simility Helps With PSD2 Compliance

Omnichannel Fraud Protection

Simility uses AI and ML (supervised and unsupervised) to identify new fraud threats from potential gaps created by the open API requirements of PSD2

Transaction Monitoring

Simility identifies transactions “posing a low level of risk,” addressing all of the Article 18 requirements



Simility provides all of the reporting capabilities required under Article 21 to take advantage of the SCA exception

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Zero to PSD2 in 8 Weeks

The European Commission’s Payment Services Directive 2 (PSD2) is helping to facilitate new opportunities and players within the payments market, but it is also creating substantial new obligations around security. Technology solutions such as Simility can address each of these requirements seamlessly, avoiding the SCA requirement, thus reducing fraud and…

Why Simility?

Information Integration Hub Secures All Channels

  • Ingest structured and unstructured data at big-data scale from across your organization and transform it into relevant information to perform unified analysis.
  • Easily integrate with third-party APIs for identity check, address verification, Positive Pay, etc.
  • Device recon technology provides intelligence about user’s authenticity and risk.
  • Full mobile and web browser capability; in-session monitoring detects suspect activities.

Device Recon Distinguishes Between Legitimate Customers and Fraudsters

  • Identify unique devices, mobile or desktop, by their device fingerprints.
  • In-session monitoring detects suspicious activity as users navigate your site or use your app.
  • Device fingerprinting with fuzzy matching ensures that devices are identified even though fraudsters may try to evade detection.

Combined Machine Learning and Manual Rules Provide Superior Detection

  • Adaptive machine learning models are customized for your use case and evolve with the changing nature of fraud.
  • Your analysts can create, edit, and test new rules in minutes instead of weeks with our easy-to-use rules UI.
  • Rules can be auto-tuned based on rejected transaction information.
  • In-session monitoring detects suspect activity in mobile app or browser.

Flexible, Quick Deployment

  • Predefined transaction fraud and portfolio risk models help you to easily deploy Simility within days.
  • Simility addresses use cases for a range of merchant types and business segments, from SMBs to enterprise clients.

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