In August 2016, the European Banking Authority, the EUs banking regulator, proposed the draft of technical standards to prevent illegal activities, including the passwords as cybercrime and online fraud are on the rise.
Payments of more EUR 10 with apps such as ride-hailing service Uber or on websites where consumers have registered their payment cards would also no longer be automatic, but will require verification codes.
The payments network operator said ecommerce may fall in Europe if the proposed rules where adopted, as consumers will be discouraged by the new technical hurdles while purchases outside the EU may be blocked.
It said payments to vendors outside the EU amounting to more than EUR 6 billion are at risk of being declined by network operators because foreign websites, based in the US or Japan, may not apply the EUs new security standards.
The banking authority will adopt a final proposal at the beginning of 2017 and is considering whether to introduce changes to its draft text, according to Reuters.
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