Personal finance app Yolt has decided to remove support for HSBC credit cards and savings accounts, following PSD2 developments.
To meet compliance with new PSD2 requirements, firms need to implement better authentication technology via APIs or a digital secure key. HSBC has opted for a digital secure key which means a user must reauthenticate their credit card or savings account credentials on each session.
This has hindered the way of connecting the accounts to the Yolt app. HSBC’s credit cards and savings accounts will remain unsupported until they offer an API solution, Yolt stated.
HSBC current accounts will not be affected by this change and will continue to be supported by Yolt.
A division of PSD2 is Strong Customer Authentication (SCA) which requires firms to improve protections for consumers making digital payments. The regulation requires two-factor authentication on transactions. There are three types of authentication knowledge-based verification such as a password or a PIN, an item in possession like a credit or debit card, and finally biometrics which is most commonly a fingerprint.
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