Hi Hotmix,
I would be keen to get your opinion on this as you are one of the most knowledgeable guys on the forum.
AMLD4
Isignthis & Paypal are the only 2 companies that hold patents and provide services for dynamic payment instrument verification which is a requirement of AMLD4 for online transactions. Is this your understanding?
>Yes, although Paypal's micro deposits doesnt meet the 'first payment' rule, as monies must transfer from the customer account to the AML entity. All methods described in yesterdays release, ISX and Paypal, appear to prove control of the account. Also, PPL would need to cannibalise its core market (eWallet) and unbundle its verification from its service. Fairly unlikely.
PSD2
Isignthis & Paypal are the only 2 companies that hold patents and provide services for dynamic payment instrument verification which is used to facilitate SCA through 2FA.
>No. 3DSEcure V2.0 will be release 2018, and likely deployed 2019/2020 - 2 years late into the market. 3DS is not accepted for 4AMLD, as it can be bypassed easily, and, it can also be reset easily by use of simple out of wallet questions.
PPPL has no specific psD2 solution.
The key with ISX is that its technology registers the paymeny instrumet for PSD2 and the same step is used for 4AMLD, reducing onboarding friction.
Step one is pin number
Step two is verification of payment instrument
>No, Verify Instrument, then link that to a phone for one time password, and user selected PIN.
My understanding is that there is unlikely to be any other methods available to verify regulated payment instrument other than the Isignthis and PayPal methods. Is this your understanding?
>None have come up.
Does this then only leave other reg techs the use of biometric characteristics to satisfy PSD2?
Biometric doesnt a) prove who you are (unless you are scanned at a bank) and b) doesnt verify a payment instrument at registration. A face is face until its linked to an identity, and then its a 'person'.
In my mind when we are talking biometric characteristics we are talking fingerprints, facial recognition, DNA etc. I don't see how companies could come by this information without going through a KYC event and then having the biometric characteristics recorded to a database. This is surely decades away?
>China? But yeah, I dont think Privacy law would allow this collection to happen, especially in privacy mad EU.
Anyway I would be keen to hear your thoughts and comments. Maybe I have it all wrong.
>On track
All my opinion. DYOR.
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