Key Benefits of the European Union Directive PSD2 2017
The European Union Directive PSD2 is set up to regulate new forms of payment institutions, introduce new models of interaction and a mandate to open banks API for third parties.
The rapidly changing payment industry increases the risk of decreasing income from bank payments and customer income. To correct this, the revised Payment Services Directive (PSD2) governs European banks until the decisive moment.
The revised PSD2 Payment Services Directive is a data-based and technology-based directive aimed at increasing competition, innovation and transparency in the European payment market, as well as enhancing the security of Internet payments and access to a bank account. PSD2 is based on the requirement for banks to provide third party suppliers (TPPs) with access to a customer’s online account or payment services in a regulated and secure manner. This Account Access Rule (XS2A) provides banks or other payment service providers (PSPs) to secure access through application programming interfaces (APIs).
The new PSD2 directive presents significant opportunities for growing new sources of income, capturing customer property and moving towards an expanded ecosystem. The importance for banks is to use API integration and existing customer relationships to develop a customer-oriented ecosystem based on their own banking portals.
European Union PSD2 benefits
The advantages of the PSD2 European Union are:
• Access to customer accounts through APIs allows you to provide completely new types of services that will now be regulated in accordance with PSD2, namely, third-party payment initiation provided by payment initiation service providers (PISP) and account service providers (AISP).
• Through PISP, third parties will be able to initiate online payments to the e-merchant or another beneficiary directly from the payer's bank account via the online portal.
• Through AISP, third parties will be able to retrieve customer account data, including transaction history and balance sheets.
Anyway, the new directive PSD2 is the beginning of a new era of payment systems and transactions. This is a new road for entrepreneurs of non-banking and banking institutions, a new way to make a profit. For any questions related to the new European Union directive PSD2, as well as the registration of the company for the activity in the field of payment services in accordance with the new directive - contact our professional experts for help. We will be happy to answer all your questions!