Newly Launched TPP Verification by Salt Edge Consolidates Security, Exactly as PSD2 Requires
- APIs , Open Banking
- 06.04.2022 10:21 am
Salt Edge announces the launch of a new open banking solution on the European market – TPP Verification. The solution simplifies ASPSPs’ efforts in checking the third-party providers trying to access users’ account data.
To keep customers’ accounts safe, ASPSPs are obliged by PSD2 to have a mechanism for TPPs to identify themselves before accessing the open banking channels. Now, they get more safety in opening up access to customer accounts data and payments capabilities for third-party providers with Salt Edge’s TPP Verification. This way, end-users can be certain that their data will be available exclusively upon their permission to legitimate and regulated TPPs, while banks and EMIs are assured that the corresponding risk is mitigated by Salt Edge.
Shared data volumes and number of initiated payments constantly increase while open banking transitions to open finance, and ASPSPs find themselves forced to deal with complex risk management. Regulated third-party providers, whom they did not have any prior relationship with, are legally allowed to access banks’ customers’ accounts, with customer explicit consent. The latter are protected by PSD2, which says that in case money is lost through an open banking operation, the bank will pay them back. But who protects the banks, in this case?
Salt Edge is filling that gap with the in-house built, standalone solution dedicated to banks and EMIs – TPP Verification. Ticking the legal box for banks to verify the status of each TPP trying to gain access to their accounts, the newly launched solution takes the burden off financial institutions. It is resource-consuming for banks to perform checks on TPPs, with dozens of QTSPs and registries of National Competent Authorities, all running on various technology stacks, with the information available in different formats, much of it missing or being duplicated.
Salt Edge’s TPP Verification is available on the SaaS model and is easily deployed on ASPSP’s side within a couple of days, being compatible with both dedicated APIs and modified customer interfaces. The information is provided in a matter of milliseconds and includes data about TPP’s PSD2 role, issuing QTSP, passporting permissions, eIDAS revocation checks, and more.
Open banking’s success depends on innovation and collaboration, backed-up by serious investments in security. Instead of doing it alone, ASPSPs can team up with fintechs and collectively deliver greater solutions to everyday challenges. TPP Verification developed by Salt Edge does exactly what it promises: protects data and enhances payments’ security, making fraudulent activities impossible. We are keeping the fences as high as possible.
Ana Maria Bahnarel, Project Manager at Salt Edge
For more details on TPP Verification, please visit Salt Edge’s website or book a demo to see how TPP Verification works.