Over the weekend, i was reading the European Payments Council (EPC) March 2017 Newsletter. I know, i need to get out more! Anyway, its a good read. What really caught my eye was a PSD2 Infographic – you do need to sit down and read it – but i think its worth a look. The PSD2 Infographic highlights the following themes:
The Origins of the Payments Services Directive (PSD2):
- The Payments Services Directive (PSD) was established in 2007 and created a single framework for payments and direct debit collections in the European Union (EU) – this laid the legal foundation for SEPA (Single Euro Payments Area)
- While 2007 was not that long ago – in the meantime, many financial technology or Fintech companies have come into the financial services space and started “disrupting” the traditional way of doing things. The EU took note of this, saw that these Fintech companies and other payment services providers were outside of original PSD framework and acknowledged that a PSD update was needed
- Thats where PSD2 comes into play, PSD2 aims to bolster innovation and competition in the payments space
What will PSD2 Change?
- New technology firms recognising opportunities in financial services will be able to compete on a level playing field with traditional financial services and banking institutions. These Fintech newcomers will be able to
- Access customer accounts
- Make payments on behalf of customers using….
- API‘s – which account holding institutions will have to give fintech companies access to
- Enhanced security through SCA – Strong Customer Authentication – such as Two Factor Authentication
Who Are the New PSD2 Players?
Are you ready for this?
- TPP – Third Party Payment Service providers
- ASPSP – Account Servicing Payment Service Providers
- AISP – Account Information Service Providers
- PISP – Payment Initiation Service Providers
PSD2 Timeline:
- December 2007 – Final text of the Payment Services Directive (PSD) is published in the Official Journal of the European Union
- July 2013 – European Commission publishes PSD revision – PSD2
- December 2015 – Final text of PSD2 is published in the Official Journal of the European Union
- January 2016 – PSD2 (Directive EU-2015/2366) enters into force
- August – October 2016 – EBA (European Banking Authority) consults on Regulatory Technical Standards (RTS) on Strong Customer Authentication (SCA)
- February 2017 – EBA publishes final draft RTS on Strong Customer Authentication (SCA)
- Pre-Summer 2017 – European Commission should publish the final RTS on Strong Customer Authentication (SCA) and Secure and Common Communications
- Throughout 2017 – EBA (European Banking Authority) finalises guidelines and Regulatory Technical Standards (RTS) to implement PSD2
- 13th January 2018 – PSD2 transposed into national EU law
- November – December 2018 – The Regulatory Technical Standards (RTS) on Strong Customer Authentication (SCA) and Secure and Common Communications comes into force
For full and further information about PSD2 – Check out 5 things you need to know about PSD2
