Strong Customer Authentication (SCA) with EUDI-Wallets
Short Introduction
Strong customer authentication (SCA) is a security practice that exists independently of the eIDAS 2 regulation. It refers to the secure process of verifying a user’s identity to log into an online banking account or to authorise a payment. Introduced and mandated by the Revised Payment Services Directive (PSD2), payment service providers, such as banks, must offer multi-factor authentication to fulfil the requirements of SCA. This multi-factor authentication requires at least two of these three key factors to be asked of the user.
Currently, these are verified and presented based on the PSD2 framework and are currently expanded as described in the eIDAS Architecture Reference Framework.
Something you know
Which can be a password, PIN or passphrase
Something you have
Such as a mobile phone, smart card or token
Something you are
What the customer inherents, such as a facial recognition, fingerprint or other biometric data
Mandatory acceptance for banks
The European Digital Identity Wallet (EUDI Wallet) will soon be mandatory for regulated financial organisations and banks under Article 5f of the new eIDAS 2 regulation. That means financial institutions, such as banks must support wallet-based identification and authentication—including for strong customer authentication (SCA) and Know your Customer (KYC) by 2027.
Source: EU 2024/1183 Art. 5f (2)
Start now integrating SCA with EUDI-Wallets
As outlined in the eIDAS 2 regulation, institutions required to implement Strong Customer Authentication (SCA) will soon need to support EUDI Wallets for secure online authentication—covering actions like account login, payment authorisation, and access to sensitive financial data.
We understand that implementing SCA with the EUDI Wallet introduces significant technical and organisational challenges. That’s why we’ve already integrated the relevant standards and specifications into our solution stack—so financial institutions don’t have to start from scratch.
With our EUDI Wallet Starter Programme organisations can already test and demonstrate EUDI Wallet based SCA flows today. From receiving a PID, to opening a bank account, to authorising a payment using a payment attestation a structured path to test, iterate, and prepare for production.
Leaders and Experts in SCA with EUDI Wallets
At Lissi, we’re proud to be among the leading contributors shaping EUDI Wallet based Strong Customer Authentication (SCA) in Europe. Through our active participation in the EWC Payment Task Force, alongside industry leaders like Visa as well as through our involvement in SPRIN-D , we’ve helped define how payment authentication works with the EUDI Wallet.
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