Strong Customer Authentication
Strong Customer Authentication (SCA) is a regulatory requirement under the European Union's Payment Services Directive 2 (PSD2) that mandates multi-factor authentication for electronic payments to enhance security. It requires payment service providers to verify a user's identity using at least two independent factors from categories like knowledge (something you know), possession (something you have), and inherence (something you are). This concept is designed to reduce fraud and protect consumers in online and card-not-present transactions.
Developers should learn SCA when building or maintaining payment systems, e-commerce platforms, or financial applications that handle transactions in the EU or similar regulated markets, as compliance is legally required to avoid penalties and ensure secure operations. It's crucial for implementing secure authentication flows, integrating with payment gateways like Stripe or Adyen that support SCA, and understanding regulatory impacts on user experience and system design.