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https://eba.europa.eu/regulation-and-policy/payment-services-and-electronic-money/regulatory-technical-standards-on-strong-customer-authentication-and-secure-communication-under-psd2 https://eba.europa.eu/single-rule-book-qa/-/qna/view/publicId/2018_4039 "Paragraph 35 of the EBA opinion on the implementation of the Commission Delegated Regulation (EU) 2018/389 (RTS on Strong customer authentication and secure communication) clarifies that “For a device to be considered possession, there needs to be a reliable means to confirm possession through the generation or receipt of a dynamic validation element on the device”. In this context, a one-time password sent via SMS would constitute a possession element and should therefore comply with the requirements under Article 7 of these RTS, provided that its use is ‘subject to measures designed to prevent replication of the elements’, as required under Article 7(2) of these RTS. The possession element would not be the SMS itself, but rather, typically, the ...
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