What are the opportunities, problems, implications and challenges of PSD2? That’s what Jonas Gharanfoli, Pre-sale Security Services has written a white paper about. The growth of internet payments and a rapid evolving fintech sector in the European market has caused the European Union to revise their Payment Service Directive (PSD). The new directive, that will effectively replace the PSD, is conveniently called PSD2. The deadline for member states to transpose PSD2 into national legal and regulatory frameworks is 13 January 2018. The PSD2 has already managed to cause a big stir in the European banking and payment service sector.
The start of the white paper reads as follows:
What are the objectives of the PSD2?
Like its predecessor, the PSD2 aims to harmonize internet payments across the European space, increasing the scope and ambition of the previous directive. The PSD2 has a stronger focus on consumer security and is opening the payment service market for so called Third Party Payment Service Providers (TPPs).
These are the most fundamental changes of PSD2:
» Third party Access to Accounts (XS2A)
» Prohibited surcharging
» Enforced two factor authentication
As a whole, the PSD2 aims to push for more innovative payment services by enforcing regulations that will increase the competition and security of payment services.
Click here to read the complete PSD2 white paper!