In the future, payment transactions are to be made more secure using this payment method. Strong customer authentication will come into force on September 14 as part of the EU Payment Services Directive PSD2.

Zalando has already completed its tests for this process and is one of the first e-commerce companies to implement the guidelines. “Customer focus combined with technology and speed are part of our DNA. We are therefore delighted to be one of the first companies to successfully implement SCA together with Adyen,” explains Kai-Uwe Mokros, Managing Director of Zalando Payments.

Two-stage verification

Customers must approve two different factors for the new authentication for online payment. In addition to entering credit card details, for example, Zalando customers will in future also have to perform an additional authentication when making a payment, which can be a fingerprint or a unique password. Once the customer has decided on a payment method with Zalando and stored his data, it is encrypted and forwarded to the customer’s bank.

The fashion retailer is working with Adyen to implement the new payment services directive. The secure data transfer is made possible by the technology of the Adyen payment platform, explains Zalando.

“We are delighted about the partnership with Zalando and its pioneering role in implementing strong customer authentication,” explains Alexa von Bismarck, Country Manager Adyen Germany. “For Zalando and Adyen, the top priority is to ensure that customers pay securely on the Internet and have a smooth shopping experience at the same time. With Adyen’s 3DS 2 solution, that’s exactly what can be guaranteed.”

If, for example, the customer has a bank app on his smartphone, he will receive a message from his bank about the additional authentication of the payment. If the customer opens the message, he or she is directed to the bank app and asked to confirm the payment with his or her fingerprint. After verifying, the customer is automatically redirected back to Zaldo’s checkout process. The order has been placed successfully.

EU Directive PSD2

All digital payment methods are affected by the EU Directive PSD2. The exact authentication for the individual customer is determined by the respective bank. Three groups of factors are used under the new directive. These are made up of three groups: Knowledge (e.g. password), possession (e.g. smartphone or one-time password) and identity (e.g. fingerprint).


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Link: Zalando explains the exact function on his website.

Image: Getty Images