NACHA, the US electronic payments association, is to organize a pilot to test online transactions in which consumers would be authenticated by their own financial institutions, and initiate private, secure electronic payments via their financial institutions’ online banking websites.
Research continues to show that privacy and security are the primary concerns of consumers that do not conduct transactions on the Internet, said Elliott C McEntee, president and chief executive officer of NACHA. By enabling financial information to remain private between these consumers and their financial institutions, whole new markets of consumer transactions could be conducted online.
In the pilot, a consumer would choose to complete an online transaction at a website using this authentication and payment method.
The consumer would then be re-directed via a secure network to their financial institution’s online banking website, where they would log in using existing log-in procedures. Once securely within the financial institution’s website, the consumer would confirm the details of the transaction and authorize payment.