In 2015, the European Parliament adopted the Payment Services Directive II to “protect consumers better when they make payments, promote the development and use of innovative online and mobile payments and make European payment services safer”.
However, according to Irish MEP Brian Hayes, the European Banking Authority (EBA) was then given a mandate to “flesh out” precise technical details on how customer authentification should work in practice.
“The problem here is that the EBA has proposed a completely disproportionate approach for online payments,” said Mr Hayes. “It has proposed that customers should provide extra security authentication for every online purchase over €10. Additionally, for contactless payment at the point of sale, extra security authentication would be required for any purchase over €50 under the EBA proposals.”
Mr Hayes said MEPs and member states were very clear when they adopted the Payment Services Directive that customer authentication should be based on the level of risk involved in the service provided.
“We all want the best security when we make online payments or payments at the point of sale,” said Mr Hayes. “Fraud is a major challenge and we cannot allow for fraudsters to easily access customers financial information.
But applying these harsh thresholds through a one-size-fits-all approach is completely disproportionate. It would make online shopping a much more onerous task, especially for those who are not particularly tech-savvy.”
He added that there needs to be a risk-based approach to customer authentication.
Meanwhile, Amazon has filed a patent for flying warehouses that could use a fleet of drones to make deliveries to customers.
A patent document filed in the US describes giant airships as “airborne fulfilment centres” (AFC) that could be stationed above metropolitan areas and used to store and quickly deliver items at times of high demand, using drones dispatched directly from the airship.
The technology giant is already testing drone deliveries in Britain, and made its first commercial delivery under the trial in Cambridgeshire earlier this month.
The patent filing also suggests smaller aircraft and other unmanned aerial vehicles (UAVs) could ferry workers to and from the ship as well as replenish stock.
“The AFC may be an airship that remains at a high altitude (e.g. 45,000 feet) and UAVs with ordered items may be deployed from the AFC to deliver ordered items to user-designated delivery locations,” it said.