Credorax deploys PixelPin's knowledge-based solution as part of their SCA suite


About four years of work came to fruition on 14 September last year with the Payments Services Directive 2 (PSD2) coming fully into effect. The EU directive – the second iteration, as the name suggests – has one aim: safer and more innovative payment services for users. But what does that mean in practice?

PixelPin has been working on a proof of concept with Credorax, a provider of smart acquiring solutions, using PixelPin’s image-based login technology as part of SCA. You can read more about the project on the Credorax blog here.

Power to the People
One key pillar of PSD2 is to give consumers more rights than they currently enjoy. This will be enforced in multiple ways, not least by improving transparency for consumers across T&Cs, exchange rates and charges. By changing rules and regulations in this way, consumers will be able to make better-informed decisions than in the past and be more aware of the details of how they are being charged. These changes will be complemented by tighter controls on the reporting of incidents of fraud and system downtime, as well as more robust complaints procedures.

Newer, Faster, Smarter
The past 10 to 15 years has probably seen the biggest shake-up in the payments space since money replaced bartering for goods. Cash has given way to the normalisation of cards, the advent of contactless and now mobile payments. But there’s a lot more to come. Open Banking and third-party access will open up newer more connected ways to pay, some of which haven’t even been imagined yet.

Open, Transparent but Above All Secure
Making payments more transparent and open is one thing but those payments need to be secure too. As such, PSD2 introduces Strong Customer Authentication (SCA). Two-factor identification will be introduced for certain payments to be processed. To successfully make a payment, users will need to provide two of the following:
•    Something they know such as a Pin or password
•    Something they own/have such as a card  or mobile phone
•    Something unique to them such as a fingerprint
The addition of two-factor identification will certainly help combat fraud but will also add an extra layer of complexity or friction for users.

Reducing Friction with Image-Based Authentication
The aim for merchants will be to remove as much of that hassle as possible while maintaining the security SCA has been put in place for. That’s where PixelPin comes in: replacing passwords and PINs (the something you know) with a sequence of four points on a personal picture. It’s more personal, easier to remember and more secure.

If you want to learn more about how PixelPin can help you meet the SCA needs of PSD2 contact us on