MYPINPAD, the global leader in secure customer authentication solutions, has launched an authenticator platform to allow financial institutions to freely develop PSD2 compliant solutions in a secure sandbox environment.

The proposition is strengthened through a collaboration between MYPINPAD and AimBrain, a leader in biometric authentication for fraud prevention, the result being an unrivalled solution for banks and PSPs to seamlessly meet PSD2 requirements. 

The MYPINPAD authenticator platform provides a secure enclave for financial institutions to rapidly, yet securely, design and implement Android and iOS payment applications via the MYPINPAD API. The net result is the ability to securely accept PIN entry on commonly available smart devices (such as phones and tablets) in an online purchasing environment that is compliant with PCI and scheme regulations.

The relevance of such authentication has never been higher due to the anticipated introduction of the revised Payment Services Directive (PSD2) on September 14^th, 2019. The driving force behind this new regulation is stronger user authentication, to combat rising levels of payments fraud and provide financial institutions with the assurance that the user is who they say they are. This will result in all transactions over a set amount requiring two factor authentication (2FA).

The Regulatory Technical Standard (RTS) published by the European Banking Authority (EBA) describes the principles of multi-factor authentication but falls short on how this should be implemented. This lack of clarity has the potential to increase costs for service providers and banks who struggle to meet these new regulations.

It is this challenge which has triggered the collaboration between MYPINPAD and AimBrain to assist financial institutions to meet Strong Customer Authentication (SCA) requirements in a cost-effective and timely way.

PSD2 demands at least two of the following factors in place to authenticate a user:

•          Something the customer knows, Knowledge (e.g., a payment card PIN)

•          Something the customer has, Possession (e.g., phone or hardware token)

•          Something the customer is, Inherence (e.g., a biometric factor such as facial or voice authentication)

MYPINPAD’s authenticator platform and solution suite has been created to reduce the reliance on binary passwords subject to large scale breaches and largely regarded as no longer adequate for genuine user authentication. The MYPINPAD solution combines all three factors; the user’s phone (possession), their card PIN (knowledge) and now, by collaborating with AimBrain, a facial authentication step (inherence).

The net result is best-in-class solution that adheres to PSD2 compliance and offers consumers a fast and accurate way in which to authenticate themselves, giving organisations stronger protection against fraudulent transactions. Leveraging everyday smartphone cameras, organisations can now request a facial authentication step via a selfie, that acts as the ‘inherence’ factor for financial transactions.

Ahead of the mandatory implementation of PSD2, all PSPs and banks must have their ‘dedicated interface’ (open API) ready for testing by PISPs and AISPs by 14th March 2019. The collaboration between MYPINPAD and AimBrain offers a facility for financial institutions to meet PSD2 requirements.

Justin Pike, Founder, MYPINPAD commented: “MYPINPAD understands the challenges currently being faced by PSP’s and banks with the introduction of PSD2. The launch of our API and Sandbox platform is focused on usability and flexibility but most importantly meeting the payment industry’s most demanding security requirements. Our collaboration with AimBrain is one such example of how our solutions can allow customers to meet the latest requirements while maintaining the most commonly and seamless form of consumer authentication; PIN. We welcome further inclusive collaboration from across the payments industry that will bring together existing and new initiatives to secure payments in a compliant and user-friendly way.”

Antony Bream, Chief Commercial Officer, AimBrain said: “We are delighted to be working with MYPINPAD to help organisations simplify stronger user authentication. PSD2 requirements have encouraged many financial institutions to refresh their entire authentication approach, and our collaboration with MYPINPAD offers the perfect way to test and implement a compliant-ready solution.”