Accessible SCA: A Step Toward Financial Inclusion

The rise of Strong Customer Authentication (SCA) under PSD2 has been a game-changer for securing online payments in Europe. However, for many users with disabilities, SCA processes can inadvertently create barriers. With PSD3, regulators aim to address these gaps, refining the framework to make authentication both secure and inclusive. 

This article explores the accessibility challenges under PSD2, the proposed enhancements in PSD3, and why inclusive authentication isn’t just a regulatory requirement—it’s a necessity for fostering trust and participation in today’s digital economy. 

SCA Under PSD2: Progress with Limitations 

Introduced by PSD2, SCA requires payment providers to use two-factor authentication based on: 

1. Something the user knows (e.g., password), 

2. Something the user has (e.g., smartphone), or 

3. Something the user is (e.g., fingerprint). 

While SCA significantly reduced payment fraud, it also revealed accessibility shortcomings. For example: 

• Visual impairments: Users relying on screen readers may struggle with OTP codes sent via text. 

• Motor disabilities: Those with limited dexterity face difficulties using card readers or hardware tokens. 

• Cognitive challenges: Memory-based systems like PINs and passwords can overwhelm users with conditions like dyslexia or dementia. 

The lack of uniformity in SCA implementations across providers further exacerbates these issues. As PSD3 takes shape, regulators aim to create an ecosystem where no user is left behind. 

PSD3: Raising the Bar on Accessibility 

PSD3 acknowledges that accessibility isn’t an afterthought but a core requirement. Its proposed enhancements to SCA include: 

1. Accessibility as a Standard, Not an Exception 

PSD3 emphasizes compliance with Web Content Accessibility Guidelines (WCAG), ensuring that digital interfaces and authentication processes are accessible to users with a wide range of disabilities. This includes: 

• Screen reader compatibility for visually impaired users. 

• Keyboard-only navigation for individuals unable to use a mouse or touchscreen. 

• Simplified workflows to minimize cognitive strain. 

2. Biometric and Multi-Device Authentication 

PSD3 encourages the adoption of biometric methods like facial recognition and voice authentication, which can make authentication more intuitive. Moreover, it supports multi-device capabilities, enabling users to authenticate payments on accessible devices such as smart speakers or wearables. 

3. Smarter, Context-Aware Exemptions 

While PSD2 allowed exemptions for low-value and recurring transactions, PSD3 introduces dynamic exemptions that consider user context. For instance: 

• Regular transactions to trusted merchants could bypass redundant SCA steps. 

• Real-time fraud analysis could evaluate risk without requiring unnecessary input from users. 

By reducing authentication friction in low-risk scenarios, PSD3 simplifies the payment journey for all users, particularly those with disabilities. 

Real-Life Applications of Accessible SCA 

How do these changes translate into real-world benefits? Here are some practical examples: 

1. Voice Authentication for Accessibility: A user with limited dexterity could authenticate a payment by speaking a secure phrase into their device. This eliminates the need for PIN entry or device handling. 

2. Wearable Biometrics for Multi-Device Users: A smartwatch with fingerprint or voice recognition could act as the authentication tool for payments initiated on a less accessible device, like a desktop. 

3. Simplified Flows for Cognitive Accessibility: Instead of entering multiple PINs or codes, a user could authenticate with a single fingerprint scan, guided by clear on-screen instructions. 

These innovations demonstrate how accessibility enhancements benefit users with disabilities while improving convenience for everyone. 

The Case for Inclusive Authentication 

Accessibility in SCA is more than compliance—it’s about financial inclusion. Here’s why it matters: 

1. Empowering Users: Accessible authentication empowers individuals with disabilities to engage confidently in digital payments, fostering financial independence. 

2. Reducing Abandonment Rates: By removing barriers, accessible SCA reduces payment drop-offs, benefiting merchants and improving customer satisfaction. 

3. Enhancing Brand Trust: Payment providers and merchants that prioritize accessibility demonstrate a commitment to inclusivity, strengthening their reputation in the market. 

Challenges in Implementing Accessible SCA 

Despite its potential, accessible SCA comes with implementation hurdles: 

1. Technology Costs: Adopting advanced biometrics and multi-device systems requires significant investment, which may challenge smaller providers. 

2. Balancing Security and Simplicity: Striking a balance between robust security and ease of use is complex. Overcomplicated processes risk alienating users, while oversimplification could compromise safety. 

3. Diverse Needs: Disabilities vary widely, and designing solutions that address such a broad spectrum of needs requires thoughtful, user-centric design. 

Looking Ahead: The Future of Inclusive Authentication 

As digital payments become ubiquitous, accessibility must remain at the forefront of innovation. PSD3’s proposed enhancements to SCA represent a critical step in ensuring secure, inclusive financial services. However, success will require collaboration between regulators, providers, and user advocacy groups to ensure that solutions meet real-world needs. 

At its core, the evolution of SCA under PSD3 highlights a simple truth: financial security and inclusivity go hand in hand. By creating authentication processes that work for everyone, we can build a payment ecosystem that is not only safer but also fairer. 

Conclusion 

Ensuring that Strong Customer Authentication (SCA) is accessible to all is more than a regulatory goal—it’s a societal imperative. PSD3’s focus on inclusivity reflects the growing recognition that financial services must evolve to meet the needs of diverse users. From biometric authentication to simplified workflows, these enhancements promise a future where secure payments are within reach for everyone, regardless of ability. 

If you’re passionate about creating an inclusive financial future, join the conversation by liking, sharing, or commenting below. Together, we can drive innovation that empowers all users.