--- title: "National Payments Vision: Is the UK abolishing PSD2 SCA?" date: 2025-09-12T09:30:00+01:00 author: Martin Sweeney canonical_url: "https://www.ravelin.com/blog/psd2-uk-abolish-sca" section: Blog --- Blog /[3DS & SCA](/resources?search=&category%5B0%5D=134550#resourceContainer "Go to 3DS & SCA"), [Payments & payment fraud](/resources?search=&category%5B0%5D=189241#resourceContainer "Go to Payments & payment fraud") # National Payments Vision: Is the UK abolishing PSD2 SCA? Following the release of the UK Government’s National Payments Vision, there’s been a lot of talk around the potential removal of PSD2 SCA in the country. What do you need to know? 12 September 2025 ![National Payments Vision: Is the UK abolishing PSD2 SCA?](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_blogSmall/256922/351-PSD2-UK-blog-885-x-505.webp) **Note: After initial publication in November 2024, this article was updated in September 2025 to reflect further developments.** Following the release of the UK Government’s [National Payments Vision](https://www.gov.uk/government/publications/national-payments-vision) on 14 November 2024, there’s been a lot of talk – primarily online – around the potential removal of PSD2 Secure Customer Authentication (SCA) in the country. Let's separate fact from fiction and consider how this impacts merchants and consumers. ## The facts and the reports This impression that the UK will abolish PSD2 SCA or PSD2 altogether comes from the Vision's section 3.53 and is closely linked to the UK leaving the European Union – which means the country is no longer obliged to abide by this regulation. Specifically, the government has expressed its agreement with the independent **Future of Payments Review 2023**, which was published last year and led by Joe Garner. The Review pointed out post-Brexit opportunities for additional flexibility in online payments, and recommended an “outcomes-based approach” which, as noted, “can improve the shopping experience and further reduce fraud”. ![national payments vision psd2 SCA](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/Screenshot-2024-11-19-at-14.39.12.png)The Future of Payments Review provided ten recommendations aiming to "improve the consumer experience", "unlock open banking" and "enhance the alignment between the different authorities that oversee this sector". These [included two recommendations](https://www.gov.uk/government/publications/future-of-payments-review-2023) around PSD2. Per page 24: *"**Revisiting SCA now presents the opportunity to further improve both the point of sale and ecommerce experience**. Both are limited to a degree by the need to comply with very detailed SCA technical standards which flow from the EU Payment Services Directive.* *We recommend that HM Treasury accelerate the process of taking advantage of the post-Brexit flexibility and that the FCA translate them into outcomes-based rules and/or guidance.* *If regulated on an outcomes basis this would increase convenience for consumers and reduce basket abandonment whilst balancing the primary need to manage risk. It will enable firms to compete on consumer experience while managing the fraud risk, rather than being restricted to all follow very prescriptive requirements."* ![Garner report 2023 psd2 recommendation](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/Screenshot-2024-11-19-at-14.56.59.png)The key recommendation is that the UK can now **move away from rigid PSD2 technical standards and "narrow rules"**, instead providing more flexibility, which is expected to provide better shopper journeys, with less friction: *"It is important that the old technical standards are not translated into equivalent low level regulatory rules, but rather defined in terms of outcomes and regulated as such. This will enable firms to innovate to achieve the outcome – rather than to be compelled to follow the narrow rules which can sub-optimise outcomes."* ### PSR – FCA consolidation Since then, the UK government has taken further steps to enable this move to this smarter regulatory framework. In March 2025, it was announced that the Payment Systems Regulator (PSR) will be consolidated within the Financial Conduct Authority (FCA). [A consultation on this](https://assets.publishing.service.gov.uk/media/68bac94511b4ded2da19feb3/A_Streamlined_Approach_to_Payment_Systems_Regulation.pdf) was launched on 8 September 2025. The government states that this consolidation will allow for a more streamlined regulatory environment and support "the government's central mission to drive economic growth". A joint announcement from PRS and FCA mentions that *"the consolidation will ensure there is a clear, predictable and proportionate regulatory framework that supports the UK’s dynamic and fast-evolving payments landscape".* It was also explicitly confirmed that a review of the technical standards for SCA is key to the wider "regulatory evolution". ## Our analysis I believe this is hinting at **a more subtle change** than some are predicting. Rather than to do away with SCA outright, they are proposing to tone down the highly specific requirements in favor of guidance. And the chances of this happening any time soon are low. Even if the UK government decide to speed up adoption of new standards and recommendations, there would have to be both a consulting period and an implementation period to any changes of this type. At Ravelin, we agree with the findings of the Garner Review and we welcome the National Payments Vision. With the caveat that such a move **further complicates merchants’ lives if they transact internationally**, because they will have different regimes per country to manage (as they already do). Of course, this all depends on implementation. There are certainly opportunities to make meaningful change that benefits consumers, merchants and payment providers. Another thing to keep in mind is that the UK has very high 3D Secure success rates and 3D Secure challenge success rates – the best out of the 37 countries we pulled data from for Ravelin's [Global Payments Report 2025](https://pages.ravelin.com/payments-report-2025). Specifically: - **The UK is **number one globally in terms of the average 3DS success rate**, with **93%**** - **The UK also has the best average 3DS challenge success rate globally, with 94%** - The frictionless rate for the UK, however, is just 61% – not high enough to be in the top five countries. At Ravelin, we keep a close eye on payments regulations in order to best serve our clients. Time will tell how exactly the sentiments expressed in the Payments Vision will be translated into law. Rest assured, however, that Ravelin will be working hand in hand with our partners to face whatever changes – and challenges – come our way. ![Ravelin Logo](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/ravelin-symbol-logo-transparent.webp) ## Stay up to speed Sign up for Ravelin's newsletter to receive monthly updates on important developments in payments and fraud – and more! Sign up ## Author ![Martin Sweeney](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_avatarSmall/201892/Martin_Sweeney-1.webp) Martin SweeneyCo-Founder and CEO With a background in software and physics, Martin Sweeney believes in harnessing the power of technology to solve real-world problems. He co-founded… [More from this author](https://www.ravelin.com/author/martin-sweeney) ## Related content [Blog / Fraud analytics ### Refund abuse KPIs: How to measure and reduce refund fraud rates What you need to know to assess and quantify refund abuse – as well as to measure whether your refund abuse solution and strategy are delivering results. ![Can](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_33x33_crop_center-center_none_ns/280078/can.webp)Can Colak,Senior Product Manager](https://www.ravelin.com/blog/how-to-measure-refund-abuse-kpis) [Blog / Press release ### Driven by AI, customers now rival criminals for ecommerce fraud, say merchants Global ecommerce fraud enters a new phase as losses continue to climb. Merchants now view criminals and their own customers as presenting a comparable risk, and there's a gap in AI adoption. ![Ravelin Symbol Blue 1](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_33x33_crop_center-center_none_ns/187712/Ravelin-Symbol-Blue-1.webp)Ravelin Technology](https://www.ravelin.com/blog/ravelin-fraud-survey-2026-press-release) [Blog / Payments & payment fraud ### Safeguarding agentic commerce – fraud strategy advice by Ravelin's CPO "If there’s anything fraudsters like, it’s a new thing." Here's how to protect your online shop from agentic commerce fraud – which can target you no matter whether you're actively adopting AI shopping or not. ![RAVELIN STAFF Mark Barlow Head Of product website](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_33x33_crop_center-center_none_ns/175066/RAVELIN_STAFF_Mark_Barlow_Head_Of_product_website.webp)Mark Barlow,Chief Product Officer](https://www.ravelin.com/blog/agentic-commerce-fraud-prevention-strategy-analysis)