On 23 December 2015, the Official Journal of the European Union published the new Payment Services Directive (EU) 2015/2366 (PSD II), which will repeal the original Payment Services Directive 2007/64/EC (PSD), and the deadline for transposition into national legislation is 13 January 2018. PSD II aims to ensure continuity in the market under a harmonised regulatory framework where the existing and new service providers can offer their services.
PSD II increases competition in the European payments market and extends the scope of PSD to include regulation of new market participants such as Third Party Providers (TPPs), FinTech companies and new set of service providers, the so-called PISPs (payment initiation service providers) and AISPs (account information service providers). This can be viewed both as a challenge to existing companies as it imposes a range of new requirements but also as an opportunity to stimulate innovation.
PSD II allows PISPs and AISPs to initiate payments and display consolidated information from one or more accounts a user holds with other payment service providers. The ability to consolidate all accounts in one place with continued protection, the ability to choose the most convenient Internet or app interface to check account details, and the direct integration of bank accounts with merchant acquiring sites are some of the advantages introduced by PSD II for consumers.
PSD II introduces significant changes in the following main areas:
- Scope
- Geographical and currency extension regarding regulated transactions;
- “One-leg transactions” or transactions where at least one (and not anymore both) party is located within EU, and;
- Inclusion of third party providers.
- Consumer protection
- Liability regarding unauthorised transactions;
- Prohibition of card surcharges, and;
- Better consumer protection against fraud.
- Security
- Introduction of strict security requirements for the initiation and processing of electronic payments, and;
- Security mechanism and stricter consumer authentication.
- Access to infrastructure
- Regulation of payment initiation services, and;
- Regulation of account information services.
It is critical for banks, payment and e-money institutions to prepare well in advance for PSD II. MAP S.Platis closely monitors all developments to prepare for the new and challenging regulatory environment and developments and stands ready to assist you adopt and comply with any upcoming changes.
Our multidisciplinary team can provide comprehensive solutions tailored to your organisation’s needs for a smooth PSD II implementation. These include:
- Regulatory analysis of impact on your business and its operations;
- Determine obligations that apply to your model of business;
- Development of an action plan for compliance;
- Determine areas with revenue and other financial impact;
- Training and education on new regulatory requirements, and;
- Ad-hoc thematic reports and reviews.
