Utilizing the Revised Payment Service Directive (PSD2)
The main objectives of PSD2, which fully came in force on 13th January 2018, are to:
- Contribute to a more integrated and efficient European payments market.
- Improve the level playing field for payment service providers (including new players).
- Make payments safer and more secure.
- Protect consumers.
- Encourage lower prices for payments.
That is why PSD2 is not only a regulatory compliance and technology challenge, but also a strategic, operational – and legal one.
The biggest innovation of PSD2 is its requirement for the banks to open their payments infrastructure and customer data assets to third parties that can then develop payments and information services to your customers – also often called Open Banking. As part of open banking, customers are be able to carry out transactions not only via their account-managing bank, but also via the FinTech companies as third-party providers. Bank customers can then have payments executed from their own account without having to contact the account-managing institution directly. This enables customers to retrieve information from different accounts fully automated and have it available in real time. And this opens a whole new world of opportunities for the banks, fintech companies and start-ups.
We help our clients, such as start-ups, fintech companies and developers, banks, existing payment services providers and e-money issuers, implementing PSD2, which will require you to review key areas and processes across your organisation and is likely to increase compliance requirements.
Implementing the PSD2 is normally a multiple-stage project, and we will support you from beginning until all your operations are fully compliant and operational, such as:
- securing or obtaining the licence for the payment services provider,
- securing all necessary elements of compliance in respect of providing payment services,
- establishing payment services in all EU member states,
- establishment of a central contact point for offering services in the EU,
- drafting the internal code of conduct and bylaws,
- declaring and filing all necessary documents and representation in procedures before the competent regulators,
- securing compliance with both PSD2 and the GDPR.
Do you want to join the growing group of enterprises utilizing the PSD2 legal framework? Call us now and let’s start the project!