Zalando introduces 2-step authentication process as PSD2 deadline looms

Zalando has become one of the first retailers to implement a two-stage authentication process for online orders as the deadline for the process to be rolled out across the EU looms.

The online retailer announced today that it has partnered with Adyen to introduce the new payment procedure, which will require customers to offer two separate authentication methods in order to pay online.

These can include a password, a pin number, a mobile number, a payment card number or something unique to the customer like a fingerprint.

READ MORE: Alibaba to offer “pay later” options in four countries amid Klarna & Adyen tie-up

This comes ahead of the introduction of the new Payment Services Directive or PSD2, following on from 2007’s PSD.

Any markets in the EU’s single market will be required to implement PSD2 by September 14, a move that is largely expected to cause trouble for many UK retailers who are unprepared for the change.

Not only is there confusion surrounding UK retailers relationship with the single market after Brexit, but many fear it will lead to increased abandonment at the checkout stage due to greater friction.

“Customer focus in combination with technology and speed are part of our DNA,” Zalando’s managing director of payments Kai-Uwe Mokros said.

“We are therefore pleased to be one of the first companies to successfully implement SCA together with Adyen.”

Adyen’s country manager for Germany Alexa von Bismarck added: “We’re delighted to work with Zalando as it takes a pioneering role in implementing Strong Customer Authentication.

“For Zalando and Adyen, our top priority is to make sure that customers can pay securely online, with a great shopping experience. This is exactly what Adyen’s 3DS 2 solution can guarantee.”

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