Overview#Payment Services Directive (PSD2) is a new (2015-08-10) regulation that will apply across the European Union and is likely to result in a huge increase in the number of Application Programing Interfaces (APIs) for banking products.
Making Financial Organizations programmable will significantly change the engagement model for accessing a consumer’s account.
What is less clear is how this may affect the consumer themselves, including their level of access to the data (that in theory they own), and their ability to use their data in any way they see fit.customers, both consumers and businesses, to use third-party providers to manage their finances. In the near future, you may be using Facebook or Google to pay your bills, making P2P payment Transactions and analyse your spending, while still having your money safely placed in your current bank account. Banks, however, are obligated to provide these third-party providers access to their customers’ accounts through open APIs. This will enable third-parties to build financial services on top of banks’ data and infrastructure.
Banks will no longer only be competing against banks, but everyone offering financial services]. PSD2 will fundamentally change the payment Transactions value chain, what business models are profitable, and customer expectations. Through the directive, the European Commission aims to improve innovation, reinforce consumer protection and improve the security of internet payments and account access within the EU and EEA.
Payment Services Directive introduces two new types of players to the financial landscape:
More Information#There might be more information for this subject on one of the following:
- [#1] - http://ec.europa.eu/finance/payments/framework/index_en.htm - based on information obtained 2016-07-12-
- [#2] - PSD2 - the directive that will change banking as we know it - based on information obtained 2017-04-03