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• A Quick Start Guide to the Payment Services Directive (PSD2)

  22 novembre 2024, par Daniel Crough — Banking and Financial Services, Privacy

  In 2023, there were 266.2 billion real-time payments indicating that the demand for secure transactions has never been higher. As we move towards a more open banking system, there are a host of new payment solutions that offer convenience and efficiency, but they also present new risks.

  The Payment Services Directive 2 (PSD2) is one of many regulations established to address these concerns. PSD2 is a European Union (EU) business initiative to offer smooth payment experiences while helping customers feel safe from online threats. 

  In this post, learn what PSD2 includes, how it improves security for online payments, and how Matomo supports banks and financial institutions with PSD2 compliance.

  What is PSD2 ? 

  PSD2 is an EU directive that aims to improve the security of electronic payments across the EU. It enforces strong customer authentication and allows third-party access to consumer accounts with explicit consent. 

  Its main objectives are :

  • Strengthening security and data privacy measures around digital payments.
  • Encouraging innovation by allowing third-party providers access to banking data.
  • Improving transparency with clear communication regarding fees, terms and conditions associated with payment services.
  • Establishing a framework for sharing customer data securely through APIs for PSD2 open banking.

  Rationale behind PSD2 

  PSD2’s primary purpose is to engineer a more integrated and efficient European payment market without compromising the security of online transactions. 

  The original directive aimed to standardise payment services across EU member states, but as technology evolved, an updated version was needed.

  PSD2 is mandatory for various entities within the European Economic Area (EEA), like :

  • Banks and credit institutions
  • Electronic money institutions or digital banks like Revolut
  • Card issuing and acquiring institutions
  • Fintech companies
  • Multi-national organisations operating in the EU

  PSD2 implementation timeline

  With several important milestones, PSD2 has reshaped how payment services work in Europe. Here’s a closer look at the pivotal events that paved the way for its launch.

  • 2002 : The banking industry creates the European Payments Council (EC), which drives the Single Euro Payments Area (SEPA) initiative to include non-cash payment instruments across European regions. 
  • 2007 : PSD1 goes into effect.
  • 2013 : EC proposes PSD2 to include protocols for upcoming payment services.
  • 2015 : The Council of European Union passes PSD2 and gives member states two years to incorporate it.
  • 2018 : PSD2 goes into effect. 
  • 2019 : The final deadline for all companies within the EU to comply with PSD2’s regulations and rules for strong customer authentication. 

  PSD2 : Key components 

  PSD2 introduces several key components. Let’s take a look at each one.

  Strong Customer Authentication (SCA)

  The Regulatory Technical Standards (RTS) under PSD2 outline specific requirements for SCA. 

  SCA requires multi-factor authentication for online transactions. When customers make a payment online, they need to verify their identity using at least two of the three following elements :

  • Knowledge : Something they know (like a password, a code or a secret answer)
  • Possession : Something they have (like their phone or card)
  • Inherence : Something they are (like biometrics — fingerprints or facial features)

  

  Before SCA, banks verified an individual’s identity only using a password. This dual verification allows only authorised users to complete transactions. SCA implementation reduces fraud and increases the security of electronic payments.

  SCA implementation varies for different payment methods. Debit and credit cards use the 3D Secure (3DS) protocol. E-wallets and other local payment measures often have their own SCA-compliant steps. 

  3DS is an extra step to authenticate a customer’s identity. Most European debit and credit card companies implement it. Also, in case of fraudulent chargebacks, the issuing bank becomes liable due to 3DS, not the business. 

  However, in SCA, certain transactions are exempt : 

  • Low-risk transactions : A transaction by an issuer or an acquirer whose fraud level is below a specific threshold. If the acquirer feels that a transaction is low risk, they can request to skip SCA. 
  • Low-value transactions : Transactions under €30.
  • Trusted beneficiaries : Trusted merchants customers choose to safelist.
  • Recurring payments : Recurring transactions for a fixed amount are exempt from SCA after the first transaction.

  Third-party payment service providers (TPPs) framework

  TPPs are entities authorised to access customer banking data and initiate payments. There are three types of TPPs :

  Account Information Service Providers (AISPs)

  AISPs are services that can view customers’ account details, but only with their permission. For example, a budgeting app might use AISP services to gather transaction data from a user’s bank account, helping them monitor expenses and oversee finances. 

  Payment Initiation Service Providers (PISPs)

  PISPs enable clients to initiate payments directly from their bank accounts, bypassing the need for conventional payment options such as debit or credit cards. After the customer makes a payment, PISPs immediately contact the merchant to ensure the user can access the online services or products they bought. 

  Card-Based Payment Instruments (CBPII)

  CBPIIs refer to services that issue payment cards linked to customer accounts. 

  Requirements for TPPs

  To operate effectively under PSD2, TPPs must meet several requirements :

  Consumer consent : Customers must explicitly authorise TPPs to retrieve their financial data. This way, users can control who can view their information and for what purpose.

  Security compliance : TPPs must follow SCA and secure communication guidelines to protect users from fraud and unauthorised access.

  API availability : Banks must make their Application Programming Interfaces (APIs) accessible and allow TPPs to connect securely with the bank’s systems. This availability helps in easy integration and lets TPPs access essential data. 

  Consumer protection methods

  PSD2 implements various consumer protection measures to increase trust and transparency between consumers and financial institutions. Here’s a closer look at some of these key methods :

  • Prohibition of unjustified fees : PSD2 requires banks to clearly communicate any additional charges or fees for international transfers or account maintenance. This ensures consumers are fully aware of the actual costs and charges.
  • Timely complaint resolution : PSD2 mandates that payment service providers (PSPs) have a straightforward complaint procedure. If a customer faces any problems, the provider must respond within 15 business days. This requirement encourages consumers to engage more confidently with financial services.
  • Refund in case of unauthorised payment : Customers are entitled to a full refund for payments made without their consent.
  • Surcharge ban : Additional charges on credit and debit card payments aren’t allowed. Businesses can’t impose extra fees on these payment methods, which increases customers’ purchasing power.

  Benefits of PSD2 

  Businesses — particularly those in banking, fintech, finserv, etc. — stand to benefit from PSD2 in several ways.

  Access to customer data

  With customer consent, banks can analyse spending patterns to develop tailored financial products that match customer needs, from personalised savings accounts to more relevant loan offerings.

  Innovation and cost benefits 

  PSD2 opened payment processing up to more market competition. New payment companies bring fresh approaches to banking services, making daily transactions more efficient while driving down processing fees across the sector.

  Also, banks now work alongside payment technology providers, combining their strengths to create better services. This collaboration brings faster payment options to businesses, helping them stay competitive while reducing operational costs.

  Improved customer trust and experience

  Due to PSD2 guidelines, modern systems handle transactions quickly without compromising the safety of payment data, creating a balanced approach to digital banking.

  

  Banking customers now have more control over their financial information. Clear processes allow consumers to view and adjust their financial preferences as needed.

  Strong security standards form the foundation of these new payment systems. Payment provider platforms must adhere to strict regulations and implement additional protection measures.

  Challenges in PSD2 compliance 

  What challenges can banks and financial institutions face regarding PSD2 compliance ? Let’s examine them. 

  Resource requirements

  For many businesses, the new requirements come with a high price tag. PSD2 requires banks and fintechs to build and update their systems so that other providers can access customer data safely. For example, they must develop APIs to allow TPPs to acquire customer data. 

  Many banks still use older systems that can’t meet PSD2’s added requirements. In addition to the cost of upgrades, complying with PSD2 requires banks to devote resources to training staff and monitoring compliance.

  The significant costs required to update legacy systems and IT infrastructure while keeping services running remain challenging.

  Risks and penalties

  Organisations that fail to comply with PSD2 regulations can face significant penalties.

  Additionally, the overlapping requirements of PSD2 and other regulations, such as the General Data Protection Regulation (GDPR), can create confusion. 

  Banks need clear agreements with TPPs about who’s responsible when things go wrong. This includes handling data breaches, preventing data misuse and protecting customer information. 

  Increased competition 

  Introducing new players in the financial ecosystem, such as AISPs and PISPs, creates competition. Banks must adapt their services to stay competitive while managing compliance costs.

  PSD2 aims to protect customers but the stronger authentication requirements can make banking less convenient. Banks must balance security with user experience. Focused time, effort and continuous monitoring are needed for businesses to stay compliant and competitive.

  How Matomo can help 

  Matomo gives banks and financial institutions complete control over their data through privacy-focused web analytics, keeping collected information internal rather than being used for marketing or other purposes. 

  Its advanced security setup includes access controls, audit logs, SSL encryption, single sign-on and two-factor authentication. This creates a secure environment where sensitive data remains accessible only to authorised staff.

  While prioritizing privacy, Matomo provides tools to understand user flow and customer segments, such as session recordings, heatmaps and A/B testing.

  Financial institutions particularly benefit from several key features : 

  • Tools for obtaining explicit consent before processing personal data like this Do Not Track preference
  • Insights into how financial institutions integrate TPPs (including API usage, user engagement and potential authentication drop-off points)
  • Tracking of failed login attempts or unusual access patterns
  • IP anonymization to analyse traffic patterns and detect potential fraud

  

  PSD3 : The next step 

  In recent years, we have seen the rise of innovative payment companies and increasingly clever fraud schemes. This has prompted regulators to propose updates to payment rules.

  PSD3’s scope is to adapt to the evolving digital transformation and to better handle these fraud risks. The proposed measures : 

  • Encourage PSPs to share fraud-related information.
  • Make customers aware of the different types of fraud.
  • Strengthen customer authentication standards.
  • Provide non-bank PSPs restricted access to EU payment systems. 
  • Enact payment rules in a directly applicable regulation and harmonise and enforce the directive.

  Web analytics that respect user privacy 

  Achieving compliance with PSD2 may be a long road for some businesses. With Matomo, organisations can enjoy peace of mind knowing their data practices align with legal requirements.

  Ready to stop worrying over compliance with regulations like PSD2 and take control of your data ? Start your 21-day free trial with Matomo.

• Data Privacy Regulations : Essential Knowledge for Global Business

  6 mars, par Daniel Crough

  If you run a website that collects visitors’ data, you might be violating privacy regulations somewhere in the world. At last count, over 160 countries have privacy laws — and your customers in those countries know about them.

  A recent survey found that 53% of people who answered know about privacy rules in their country and want to follow them. This is up from 46% two years ago. Furthermore, customers increasingly want to buy from businesses they can trust with their data.

  That’s why businesses must take data privacy seriously. In this article, we’ll first examine data privacy rules, why we need them, and how they are enforced worldwide. Finally, we’ll explore strategies to ensure compliance and tools that can help.

  What are data privacy regulations ?

  Let’s first consider data privacy. What is it ? The short answer is individuals’ ability to control their personal information. That’s why we need laws and rules to let people decide how their data is collected, used, and shared. Crucially, the laws empower individuals to withdraw permission to use their data anytime.

  The UNCTAD reports that only 13 countries had data protection laws or rules before the 2000s. Many existed before businesses could offer online services, so they needed updating. Today, 162 national laws protect data privacy, half of which emerged in the last decade.

  Why is this regulation necessary ?

  There are many reasons, but the impetus comes from consumers who want their governments to protect their data from exploitation. They understand that participating in the digital economy means sharing personal information like email addresses and telephone numbers, but they want to minimise the risks of doing so.

  Data privacy regulation is essential for :

  • Protecting personal information from exploitation with transparent rules and guidelines on handling it securely.
  • Implementing adequate security measures to prevent data breaches.
  • Enforcing accountability for how data is collected, stored and processed.
  • Giving consumers control over their data.
  • Controlling the flow of data across international borders in a way that fully complies with the regulations.
  • Penalising companies that violate privacy laws.

  Isn’t it just needless red tape ?

  Data breaches in recent years have been one of the biggest instigators of the increase in data privacy regulations. A list of the top ten data breaches illustrates the point.

  #	Company	Location	Year	# of Records	Data Type
  1	Yahoo	Global	2013	3B	user account information
  2	Aadhaar	India	2018	1.1B	citizens’ ID/biometric data
  2	Alibaba	China	2019	1.1B	users’ personal data
  4	LinkedIn	Global	2021	700M	users’ personal data
  5	Sina Weibo	China	2020	538M	users’ personal data
  6	Facebook	Global	2019	533M	users’ personal data
  7	Marriott Int’l	Global	2018	500M	customers’ personal data
  8	Yahoo	Global	2014	500M	user account information
  9	Adult Friend Finder	Global	2016	412.2M	user account information
  10	MySpace	USA	2013	360M	user account information

  And that’s just the tip of the iceberg. Between November 2005 and November 2015, the US-based Identity Theft Resource Center counted 5,754 data breaches that exposed 856,548,312 records, mainly in that country.

  It’s no wonder that citizens worldwide want organisations they share their personal data with to protect that data as if it were their own. More specifically, they want their governments to :

  • Protect their consumer rights
  • Prevent identity theft and other consumer fraud
  • Build trust between consumers and businesses
  • Improve cybersecurity measures
  • Promote ethical business practices
  • Uphold international standards

  Organisations using personal data in their operations want to minimise financial and reputational risk. That’s common sense, especially when external attacks cause 68% of data breaches.

  The terminology of data privacy

  With 162 national laws already in place, the legal space surrounding data privacy grows more complex every day. Michalsons has a list of different privacy laws and regulations in force in significant markets around the world.

  Fortunately, there’s plenty of commonality for two reasons : first, all countries want to solve the same problem ; second, those drafting the legislation have adopted much of what other countries have already developed. As a result, the terminology remains almost the same, even when the language changes.

  These are the core concepts at play :

  Term	Definition
  Access and control	Consumers can access, review, edit and delete their data
  Data protection	Organisations must protect data from being stolen or compromised
  Consumer consent	Consumers can grant and withdraw or refuse access to their data
  Deletion	Consumers can request to have their data erased
  Data breach	When the security of data has been compromised
  Data governance	The management of data within an organisation
  Double opt-in	Two-factor authentication to add a layer of confirmation
  GDPR	Governing data privacy in Europe since 2016
  Personally identifiable information (PII)	Data used to identify, locate, or contact an individual
  Pseudonymisation	Replace personal identifiers with artificial identifiers or pseudonyms
  Publicly available information	Data from official sources, without restrictions on access or use
  Rectification	Consumers can request to have errors in their data corrected

  Overview of current data privacy legislation

  Over three-quarters of the world has formulated and rolled out data privacy legislation — or is currently doing so. Here’s a breakdown of the laws and regulations you can expect to find in most significant markets worldwide.

  Europe

  Thoughts of protecting data privacy first occurred in Europe when the German government became concerned about automated data processing in 1970. A few years later, Sweden was the first country to enact a law requiring permits for processing personal data, establishing the first data protection authority.

  General Data Protection Regulation (GDPR)

  Sweden’s efforts triggered a succession of European laws and regulations that culminated in the European Union (EU) GDPR, enacted in 2016 and enforced from 25 May 2018. It’s a detailed and comprehensive privacy law that safeguards the personal data and privacy of EU citizens.

  The main objectives of GDPR are :

  • Strengthening the privacy rights of individuals by empowering them to control their data.
  • Establishing a uniform data framework for data privacy across the EU.
  • Improving transparency and accountability by mandating businesses to handle personal data responsibly and fully disclose how they use it.
  • Extending the regulation’s reach to organisations external to the EU that collect, store and process the data of EU residents.
  • Requiring organisations to conduct Protection Impact Assessments (PIAs) for “high-risk” projects.

  ePrivacy Regulation on Privacy and Electronic Communications (PECR)

  The second pillar of the EU’s strategy to regulate the personal data of its citizens is the ePrivacy Regulation on Privacy and Electronic Communications (EU PECR). Together with the GDPR, it will comprise data protection law in the union. This regulation applies to :

  • Providers of messaging services like WhatsApp, Facebook and Skype
  • Website owners
  • Owners of apps that have electronic communication components
  • Commercial direct marketers
  • Political parties sending promotional messages electronically
  • Telecommunications companies
  • ISPs and WiFi connection providers

  The EU PECR was intended to commence with GDPR on 25 May 2018. That didn’t happen, and as of January 2025, it was in the process of being redrafted.

  EU Data Act

  One class of data isn’t covered by GDPR or PECR : internet product-generated data. The EU Data Act provides the regulatory framework to govern this data, and it applies to manufacturers, suppliers, and users of IoT devices or related services.

  The intention is to facilitate data sharing, use, and reuse and to facilitate organisations’ switching to a different cloud service provider. The EU Data Act entered into force on 11 January 2024 and is applicable from September 2025.

  GDPR UK

  Before Brexit, the EU GDPR was in force in the UK. After Brexit in 2020, the UK opted to retain the regulations as UK GDPR but asserted independence to keep the framework under review. It’s part of a wider package of reform to the data protection environment that includes the Data Protection Act 2018 and the UK PECR.

  In the USA

  The primary federal law regarding data privacy in the US is the Privacy Act of 1974, which has been in revision for some time. However, rather than wait for the outcome of that process, many business sectors and states have implemented their own measures.

  Sector-specific data protection laws

  This sectoral approach to data protection relies on a combination of legislation, regulation and self-regulation rather than governmental control. Since the mid-1990s, the country has allowed the private sector to lead on data protection, resulting in ad hoc legislation arising when circumstances require it. Examples include the Video Privacy Protection Act of 1988, the Cable Television Protection and Competition Act of 1992 and the Fair Credit Reporting Act.

  

  California Consumer Privacy Act (CCPA)

  California was the first state to act when federal privacy law development stalled. In 2018, it enacted the California Consumer Privacy Act (CCPA) to protect and enforce Californians’ rights regarding the privacy of their personal information. It came into force in 2020.

  California Privacy Act (CPRA)

  In November of that same year, California voters approved the California Privacy Rights Act (CPRA). Billed as the strongest consumer privacy law ever enacted in the US, CPRA works with CCPA and adds the best elements of laws and regulations in other jurisdictions (Europe, Japan, Israel, New Zealand, Canada, etc.) into California’s personal data protection regime.

  Virginia Consumer Data Protection Act (CDPA)

  In March 2021, Virginia became the next US state to implement privacy legislation. The Virginia Consumer Data Protection Act (VCDPA), which is also informed by global legislative developments, tries to strike a balance between consumer privacy protections and business interests. It governs how businesses collect, use, and share consumer data.

  Colorado Privacy Act (CPA)

  Developed around the same time as VCDPA, the Colorado Privacy Act (CPA) was informed by that law and GDPR and CCPA. Signed into law in July 2021, the CPA gives Colorado residents more control over their data and establishes guidelines for businesses on handling the data.

  Other states generally

  Soon after, additional states followed suit and, similar to Colorado, examined existing legislation to inform the development of their own data privacy laws and regulations. At the time of writing, the states with data privacy laws at various stages of development were Connecticut, Florida, Indiana, Iowa, Montana, New York, Oregon, Tennessee, Texas, and Utah.

  By the time you read this article, more states may be doing it, and the efforts of some may have led to laws and regulations coming into force. If you’re already doing business or planning to do business in the US, you should do your own research on the home states of your customers.

  Globally

  Beyond Europe and the US, other countries are also implementing privacy regulations. Some were well ahead of the trend. For example, Chile’s Law on the Protection of Private Life was put on the books in 1999, while Mauritius enacted its first Data Protection Act in 2004 — a second one came along in 2017 to replace it.

  Canada

  The regulatory landscape around data privacy in Canada is as complicated as it is in the US. At a federal government level, there are two laws : The Privacy Act for public sector institutions and the Personal Information Protection and Electronic Documents Act (PIPEDA) for the private sector.

  PIPEDA is the one to consider here. Like all other data privacy policies, it provides a framework for organisations handling consumers’ personal data in Canada. Although not quite up to GDPR standard, there are moves afoot to close that gap.

  The Digital Charter Implementation Act, 2022 (aka Bill C-27) is proposed legislation introduced by federal agencies in June 2022. It’s intended to align Canada’s privacy framework with global standards, such as GDPR, and address emerging digital economy challenges. It may or may not have been finalised when you read this.

  At the provincial level, three of Canada’s provinces—Alberta, British Columbia, and Quebec—have introduced laws and regulations of their own. Their rationale was similar to that of Bill C-27, so they may become redundant if and when that bill passes.

  Japan

  Until recently, Japan’s Act on the Protection of Personal Information (APPI) was considered by many to be the most comprehensive data protection law in Asia. Initially introduced in 2003, it was significantly amended in 2020 to align with global privacy standards, such as GDPR.

  APPI sets out unambiguous rules for how businesses and organisations collect, use, and protect personal information. It also sets conditions for transferring the personal information of Japanese residents outside of Japan.

  

  China

  The new, at least for now, most comprehensive data privacy law in Asia is China’s Personal Information Protection Law (PIPL). It’s part of the country’s rapidly evolving data governance framework, alongside the Cybersecurity Law and the Data Security Law.

  PIPL came into effect in November 2021 and was informed by GDPR and Japan’s APPI, among others. The data protection regime establishes a framework for protecting personal information and imposes significant compliance obligations on businesses operating in China or targeting consumers in that country.

  Other countries

  Many other nations have already brought in legislation and regulations or are in the process of developing them. As mentioned earlier, there are 162 of them at this point, and they include :

  Argentina	Costa Rica	Paraguay
  Australia	Ecuador	Peru
  Bahrain	Hong Kong	Saudi Arabia
  Bermuda	Israel	Singapore
  Brazil	Mauritius	South Africa
  Chile	Mexico	UAE
  Colombia	New Zealand	Uruguay

  Observant readers might have noticed that only two countries in Africa are on that list. More than half of the 55 countries on the continent have or are working on data privacy legislation.

  It’s a complex landscape

  Building a globalised business model has become very complicated, with so much legislation already in play and more coming. What you must do depends on the countries you plan to operate in or target. And that’s before you consider the agreements groups of countries have entered into to ease the flow of personal data between them.

  In this regard, the EU-US relationship is instructive. When GDPR came into force in 2016, so did the EU-US Privacy Shield. However, about four years later, the Court of Justice of the European Union (CJEU) invalidated it. The court ruled that the Privacy Shield didn’t adequately protect personal data transferred from the EU to the US.

  The ruling was based on US laws that allow excessive government surveillance of personal data transferred to the US. The CJEU found that this conflicted with the basic rights of EU citizens under the European Union’s Charter of Fundamental Rights.

  A replacement was negotiated in a new mechanism : the EU-US Data Privacy Framework. However, legal challenges are expected, and its long-term viability is uncertain. The APEC Privacy Framework and the OECD Privacy Framework, both involving the US, also exist.

  

  Penalties for non-compliance

  Whichever way you look at it, consumer data privacy laws and regulations make sense. But what’s really interesting is that many of them have real teeth to punish offenders. GDPR is a great example. It was largely an EU concern until January 2022 when the French data protection regulator hit Google and Facebook with serious fines and criminal penalties.

  Google was fined €150M, and Facebook was told to pay €60M for failing to allow French users to reject cookie tracking technology easily. That started a tsunami of ever-larger fines.

  The largest so far was the €1.2B fine levied by the Irish Data Protection Commission on Meta, the owner of Instagram, Facebook, and WhatsApp. It was issued for transferring European users’ personal data to the US without adequate data protection mechanisms. This significant penalty demonstrated the serious financial implications of non-compliance.

  These penalties follow a structured approach rather than arbitrary determinations. The GDPR defines an unambiguous framework for fines. They can be up to 4% of a company’s total global turnover in the previous fiscal year. That’s a serious business threat.

  What should you do ?

  For businesses committed to long-term success, accepting and adapting to regulatory requirements is essential. Data privacy regulations and protection impact assessments are here to stay, with many national governments implementing similar frameworks.

  However, there is some good news. As you’ve seen, many of these laws and regulations were informed by GDPR or retrospectively aligned. That’s a good place to start. Choose tools to handle your customer’s data that are natively GDPR-compliant.

  For example, web analytics is all about data, and a lot of that data is personal. And if, like many people, you use Google Analytics 4, you’re already in trouble because it’s not GDPR-compliant by default. And achieving compliance requires significant additional configuration.

  A better option would be to choose a web analytics platform that is compliant with GDPR right off the bat. Something like Matomo would do the trick. Then, complying with any of the tweaks individual countries have made to the basic GDPR framework will be a lot easier—and may even be handled for you.

  Privacy-centric data strategies

  Effective website data analysis is essential for business success. It enables organisations to understand customer needs and improve service delivery.

  But that data doesn’t necessarily need to be tied to their identity — and that’s at the root of many of these regulations.

  It’s not to stop companies from collecting data but to encourage and enforce responsible and ethical handling of that data. Without an official privacy policy or ethical data collection practices, the temptation for some to use and abuse that data for financial gain seems too great to resist.

  

  Cookie usage and compliance

  There was a time when cookies were the only way to collect reliable information about your customers and prospects. But under GDPR, and in many countries that based or aligned their laws with GDPR, businesses have to give users an easy way to opt out of all tracking, particularly tracking cookies.

  So, how do you collect the information you need without cookies ? Easy. You use a web analytics platform that doesn’t depend wholly on cookies. For example, in certain countries and when configured for maximum privacy, Matomo allows for cookieless operation. It can also help you manage the cookie consent requirements of various data privacy regulations.

  Choose the right tools

  Data privacy regulations have become a permanent feature of the global business landscape. As digital commerce continues to expand, these regulatory frameworks will only become more established. Fortunately, there is a practical approach forward.

  As mentioned several times, GDPR is considered by many countries to be a particularly good example of effective data privacy regulation. For that reason, many of them model their own legislation on the EU’s effort, making a few tweaks here and there to satisfy local requirements or anomalies.

  As a result, if you comply with GDPR, the chances are that you’ll also comply with many of the other data privacy regulations discussed here. That also means that you can select tools for your data harvesting and analytics that comply with the GDPR out of the box, so to speak. Tools like Matomo.

  Matomo lets website visitors retain full control over their data.

  Before deciding whether to go with Matomo On-premise or the EU-hosted cloud version, why not start your 21-day free trial ? No credit card required.

• Privacy-friendly analytics : The benefits of an ethical, GDPR-compliant platform

  13 juin, par Joe

  Your visitors shouldn’t feel like you’re spying on them — even if you’re just trying to improve the user experience or track your marketing efforts. 

  While many analytics platforms make customers feel that way thanks to intrusive cookie consent banners and highly personalised ads, there is a growing movement towards ethical, privacy-friendly analytics.

  In this article, you’ll learn what privacy-friendly analytics is, why it matters, what to look for in a solution and which of the leading providers is right for you. 

  What is privacy-friendly analytics ? 

  Privacy-friendly analytics is a form of website analytics that collects and analyses data in a way that respects the user’s privacy. It’s a type of ethical web analytics.

  Privacy-friendly platforms limit personal data collection and anonymise individual user data while being transparent about collection and tracking methods. They help companies adhere to data protection laws (like GDPR, CCPA, and HIPAA) and new privacy laws (like OCPA, FDBR, and TDPSA) without configuring custom settings. 

  Why use privacy-friendly analytics ? 

  Millions of businesses choose privacy-friendly analytics platforms like Matomo. Here are a few reasons why : 

  Build trust with customers

  Research shows that the vast majority of consumers don’t trust companies with their data, believing that they prioritise profits over data protection. 

  Privacy-friendly analytics can help businesses prove they aren’t out to profit from consumer data and regain customer trust. This can ultimately boost revenue. According to Cisco’s Data Privacy Benchmark Study, organisations gain $180 for every $100 spent on privacy. 

  Comply with privacy regulations

  Data privacy regulations, such as GDPR, protect consumer privacy and establish strict rules governing how businesses can collect and use personal data.

  The cost of non-compliance is high. Under GDPR, fines can be up to €20 million, or 4% of worldwide annual revenue.

  Thanks to features like data anonymisation and the default use of first-party cookies, privacy-friendly analytics platforms can support and strengthen compliance efforts. 

  In fact, the French Data Protection Authority (CNIL) approved Matomo as one of the only web analytics tools to collect data without tracking consent.

  Minimise the impact of a breach

  According to IBM’s Cost of a Data Breach report, the average cost of a data breach is nearly $4.5 million. The more personally identifiable information (PII) is involved, the higher the fines and penalties. 

  A privacy-friendly analytics tool can reduce the potential impact of a breach by minimising the amount of personal information you hold. 

  Is Google Analytics privacy-friendly ?

  Google may be the best-known analytics platform, but it’s not the best choice for businesses that want to collect data responsibly and ethically. 

  Here are just a few of Google Analytics’s privacy issues :

  • It uses analytics data to run its advertising business.
  • It may train large language models like Gemini with analytics data.
  • It requires a specific setup to be GDPR compliant that isn’t available out of the box.

  Google Analytics’s ongoing issues with privacy laws like GDPR also raise doubt. The French and Austrian Data Protection Authorities have banned Google Analytics in the past, and there is no guarantee they won’t do so again. 

  What to look for in privacy-friendly analytics ?

  Several privacy-friendly analytics tools are available. To find the right one for your brand, look for the following features.

  Data ownership

  Choose a provider that gives you as much control over your users’ data as possible. Ideally, this will be via an on-site solution where you store data on your servers. For cloud-based options, ensure your analytics provider can’t access, use or sell it.

  With 100% data ownership, you have the power to protect your users’ privacy. You know where your customer data is stored and what’s happening to it without external influence.

  Open source

  The only genuinely privacy-friendly software is open-source software. Open-source software means anyone can review the code to ensure it does what it promises — in this case, maximising privacy. 

  Matomo is an open-source software company. Our source code is on GitHub, where everyone can see precisely how our platform tracks and stores user data. A community of developers also regularly examines and reviews our code to further strengthen security. 

  Data anonymisation 

  Privacy-friendly analytics should allow marketers to completely anonymise the data they collect. They achieve this through several techniques like IP anonymisation and pseudonymised user IDs that modify or remove personally identifiable data so it can’t be linked to individuals.

  

  Matomo’s data anonymisation settings 

  In Matomo, for example, you can anonymise the following things in the platform’s Privacy settings :

  • IP address
  • Location
  • User ID

  IP address anonymisation is enabled by default in Matomo.

  No data sampling 

  Data sampling involves extrapolating analytics reports from an incomplete data set. Google Analytics uses this practice and relies on estimates, leading to incomplete and potentially inaccurate results.

  Privacy-friendly analytics should provide 100% accurate insights without making assumptions about your users’ data.

  GDPR compliance

  Privacy-friendly web analytics platforms adhere to even the strictest privacy laws, including GDPR, HIPAA and CCPA, thanks to the following features :

  • Data anonymisation
  • Cookieless tracking
  • EU data storage
  • First-party cookies by default

  

  Matomo data subject access request settings
  (Image Source)

  Privacy-first platforms also make it easy for companies to fulfil data subject access requests. In Matomo, for example, a dedicated feature lets you find, download and delete all of the data you hold about specific individuals. 

  Cookieless tracking

  Cookieless tracking is a form of visitor tracking that uses methods other than cookies to identify individual users. It is more privacy-friendly because no personal data is collected, and users can withhold consent from cookie banners.

  Matomo uses the most privacy-friendly industry-leading cookieless tracking method, config_id, to anonymously track visitors without fingerprinting them. 

  Top 3 privacy-friendly analytics platforms

  We’ve shortlisted three of the leading privacy-friendly analytics platforms. Learn what they offer, what makes them different and how much they cost.

  Matomo

  Matomo is an open-source web analytics tool and privacy-focused Google Analytics alternative trusted by over one million sites in over 190 countries and over 50 languages. 

  

  Matomo dashboard

  Matomo prioritises privacy and keeping businesses compliant with global privacy regulations like GDPR, CCPA and HIPAA. The data you collect is 100% accurate and yours alone. We don’t share it or use it for other purposes. 

  Benefits

  • Matomo’s all-in-one solution offers traditional web and behavioural analytics, such as heatmaps and session recordings. It also includes a free, open-source tag manager. 
  • Matomo gives you the choice of where to store your user’s data. With Matomo Cloud, that’s in our European servers. With Matomo On-Premise, that’s on your servers.
  • Matomo is open-source. Hundreds of independent developers have reviewed our code, and you can view it yourself on GitHub.

  Pricing 

  Hosting Matomo On-Premise is free, while Matomo Cloud costs $26 per month. 

  Fathom

  Fathom Analytics is a simple, easy-to-use alternative to Google Analytics that puts a premium on privacy. 

  

  Fathom dashboard
  (Image Source)

  Fathom has made its platform as easy to use as possible. You can install Fathom on any website or CMS using a single line of code. It also means the platform won’t massively impact your site’s speed or SEO performance. 

  Benefits

  • Fathom complies with all major privacy regulations, including GDPR and CCPA.
  • Fathom doesn’t sample data. It also blocks bots and scrapers, so you only see human visitors.
  • Fathom anonymises IP addresses, so you don’t have to show cookie banners.

  Drawbacks

  • Fathom doesn’t offer many of Matomo’s advanced features like e-commerce tracking, heatmaps, and session recordings.
  • The premium version of Fathom is not open-source. 

  Pricing 

  From $15 per month.

  Plausible

  Plausible Analytics is an open-source, privacy-friendly analytics tool built and hosted in the EU.

  

  Plausible dashboard
  (Image Source)

  The platform launched in 2019 as a lightweight, easy-to-use alternative to Google Analytics. Its simplicity is a big selling point. Instead of dozens of menus, it presents the information you need on a single page.

  Benefits

  • Plausible boasts an ultra-lightweight script, which means it has a minimal impact on page loading times. 
  • Plausible is GDPR and CCPA-compliant by design, so there’s no need for cookie banners.
  • Plausible is an open-source software with the source code available on GitHub.

  Drawbacks

  • Plausible lacks advanced privacy controls like a GDPR manager.
  • It has none of Matomo’s advanced features like A/B testing, session recordings or heatmaps. 

  Pricing 

  From $9 per month

  Try Matomo for free

  Ready to try a privacy-friendly analytics solution ? Making the switch is easy with Matomo, as it’s one of the only platforms to import historical Google Analytics data. You can also try Matomo for free for 21 days — no credit card required.