EU rules could disrupt web commerce - Stripe
A new regulatory change in Europe on how payments are handled could have "unintended consequences for online commerce" and cost companies as much as €57bn in total, according to the head of regulatory affairs at payments firm Stripe.
Just weeks ahead of the mid-September deadline for the new rules to be implemented, Stripe head of regulatory writes in today's Sunday Independent that "a large part of the industry is not ready for this seismic shift". Stripe was founded by Irish brothers Patrick and John Collison.
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"A very significant disruption to European online commerce is coming. Strong customer authentication (SCA) will be one of the biggest regulatory changes to the world of payments in decades, both for merchants and consumers," Michael Cocoman writes.
He adds: "While it will help to tackle fraud online, which threatens to undermine trust in the internet economy, the financial impact of the new rules could be as high as €57bn across the continent, due to resulting friction in checkout processes."
Cocoman said that the European Union's strategy toward a Digital Single Market had benefited Irish companies such as Pointy, Glofox and Teamwork.
But a move by the European Banking Authority to allow individual national regulators to delay enforcement of the new payment regulations has been interpreted in different ways around Europe. This means member states are "setting their own roadmaps and enforcement deadlines of varying lengths", which, he said, "adds an extra layer of complexity to an already complex piece of regulation".
Sunday Indo Business