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PSD2

Revised Payment Services Directive. EU regulation requiring Strong Customer Authentication for electronic payments and enabling open banking. SCA mandates two-factor authentication with specific dynamic linking requirements.

PSD2 is the reason European checkout flows look the way they do, and dynamic linking is the requirement most often implemented poorly: the authentication has to be bound to the specific amount and payee, shown to the user, so an approval cannot be replayed against a different transaction. That constraint is why generic push approvals do not satisfy it.

See also: SCA, FAPI, step-up auth, identity regulations

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