Has BaFin rescued direct debit payments in German e-commerce?
A recent statement by the EBA that the setting up of a SEPA direct debit mandate provided through a remote channel is subject to strong customer authentication has caused concerns in the payment services market. BaFin has now clarified that it does not consider strong customer authentication to apply where payment service providers are not involved in the process of issuing the mandates. What are the implications of these statements?