A new payment network is aiming to help banks turn compliance with the latest payment services directive into a money-spinning exercise.
The platform, designed by Silicon Valley-based Token, aims to integrate with bank's core system APIs and its policies and procedures thereby providing a shortcut to cryptographically executing PSD2-compliant digital transactions.
Token's developers believe that such a platform frees banks from the 'shared secret' model of transaction security where sensitive information or digital tokens are used to authenticate online transactions.
Instead banks are able to control the whole transaction, claims Token chief executive Steve Kirsch. "Token was designed to meet the needs of payments in the digital age. Bank's over-reliance on out-dated networks and thrid party service providers is not only commercially counterproductive, it is also a security nightmare. It's time for a change."
Token was launched at the EBAday event in Milan, the Euro Banking Association's annual payments conference, which opened today wth more than 1,000 delegates taking part.
In addition to showcasing new payments product and services, the EBA has also published two new papers written by the association's Working Group on Alternative Electronic Payments and looking at the use of open API standards and new cryptotechnologies.