There are changes coming after the 31st of March 2020 which will impact how you log into your PayPal account and you need to ensure you have an up-to-date mobile phone number registered on your account.
The Second Payment Services Directive (PSD2) is a new European Union directive replacing the First Payment Services Directive, which regulates payment services in Europe. Part of PSD2 the new security requirements that will impact online businesses accepting card payments.
PSD2 introduces further security requirements for making electronic payments, accessing your account or making changes to your account in order to reduce the risk of fraud. These requirements, which apply to all countries in the EEA, include Strong Customer Authentication (SCA). This is an authentication process that validates your identity when you are using any payment service. #
In the future, PayPal may have to request at least 2 factors of authentication when you make a payment, access your account or making certain changes to your account. These can be something you know (password), something you have (a one time password sent to your mobile), or something you are (like a fingerprint). For most people this will mean access to the mobile registered on their account to receive a one time password via SMS text message.
Most of the time you will be able to login or pay with PayPal by just entering your email address and your PayPal password as usual. But from time to time, PayPal may ask you for a One-Time Passcode sent to you you by SMS. This is one of the methods that helps PayPal to identify you if they have doubts about your identity or regulations require them to apply 2 factor authentication and no other methods are available.
Naturally as a business, if you have multiple people accessing your PayPal account this is going to cause problems – especially if it’s someone like your accountant that doesn’t even sit in the same office. Adding friction to the process is never welcomed by users, regardless of how much it’s wanted by suppliers and mandated by legislators. Best to be prepared however, and if you’ve not checked that you have an up-to-date mobile phone number registered on your PayPal account make sure you update it before you’re locked out of your account.