What PSD2 means?

Payment Services Directive Two
Put simply, Payment Services Directive Two (PSD2) is a piece of legislation designed to force providers of payment services to improve customer authentication processes and to also bring in new regulation around third-party involvement.

What is the Payment Services Directive 2 PSD2?

The PSD2 sets rules for access to payment accounts for third-party payment service providers. Member States must ensure that account-servicing payment service providers are not blocking or obstructing the use of payment initiation and account information services for the accounts they hold.

Is PSD2 mandatory in UK?

The revised Payment Services Directive (PSD2) is required to be implemented in the UK by 13 January 2018.

Does PSD2 still apply to UK?

Although the UK left the European Union on December 31st 2020, PSD2 still applies to a great extent. In fact, sovereignty isn’t even the main issue – the UK government has adopted PSD2 into national law to bring the country in-line with its neighbouring supra-national bloc.

What are the PSD2 requirements?

PSD2 requires all payment account providers across the EU to provide certain regulated firms access to customers’ accounts, subject to their explicit consent.

Which countries does PSD2 apply to?

List of PSD2 countries

• Austria.
• Belgium.
• Bulgaria.
• Czech Republic.
• Cyprus.
• Denmark.
• Estonia.
• Finland.

Is PayPal PSD2 compliant?

PayPal Checkout supports the latest version of 3D Secure with limited additional integration requirements, so you’ll meet Payment Card Industry compliance requirements. We recommend you do this as soon as possible to comply with PSD2 and SCA requirements and avoid transactions from being declined.

What is the difference between open banking and PSD2?

Sometimes the two get confused: essentially, Open Banking is the UK version of PSD2. The difference is that whereas PSD2 requires banks to open up their data to third parties, Open Banking dictates that they do so in a standard format.

Is UK still in EU for banking?

Brexit | European Banking Authority. The United Kingdom has left the European Union on 31 January 2020. Under the Withdrawal Agreement reached between the EU and UK, the EU legislation will continue to apply in the UK during the transition period that is due to last until 31 December 2020.

What is PSD2 regulation in UK?

PSD2 is an EU Directive which sets requirements for firms that provide payment services, and will affect banks and building societies, payment institutions, e-money institutions and their customers.

Who does the PSD2 apply to?

all payment service providers
16. What is strong customer authentication? The PSD2 text introduces strict security requirements for the initiation and processing of electronic payments, which apply to all payment service providers, including newly regulated payment service providers.

Does PSD2 apply to banks?

PSD2 opens the EU payment market to competition: PSD2 sets the stage for the future. With online financial services constantly evolving, the new rules will apply equally to traditional banks and to innovative payment services and new providers, such as FinTechs.

Does PSD2 apply to debit cards?

The products affected include consumer credit cards, debit cards, and pre-paid cards, with surcharging banned on those products across the EU.

Does PSD2 apply to credit cards?

How do you become PSD2 compliant?

PSD2-compliance checklist

1. Set up a Consumer Identity and Access Management (IAM or CIAM) solution. Strong Customer Authentication (multi-factor and continuous authentication)
2. Create APIs to access transactional payment data that support: Fine-grained access control. Real-time access. Provide Access to Account (XS2A)

How does PSD2 affect banks?

PSD2 will contribute to a variety of changes in the payments industry, including open banking, creating an integrated payments ecosystem, increasing competition with the emergence of fintechs and new entrants, and enhanced security and fraud prevention.

Is UK still SEPA 2021?

Yes, we are still a member of SEPA. Two years after the public voted to leave the EU, UK Finance filed an application on behalf of UK payment service providers. It asked the European Payments Council for permission to stay involved with the SEPA scheme regardless of a Brexit deal or no deal.

Can I keep my bank account in the UK after Brexit?

Will I still be able to keep my current account or savings account after Brexit? Yes, you will. There won’t be any change to the way your current account or savings account works. We will let you know if that changes.

Who has to comply with PSD2?

To protect the consumer, PSD2 requires banks to implement multi-factor authentication for all proximity and remote transactions performed on any channel. This obligation means using two of these three features: Knowledge: Something only the user knows, e.g., password, code, personal identification number.

How will PSD2 affect banks?

PSD2 will create new PSPs but also new competitors given the “Third Party Access” requirements. The Open Banking provisions in PSD allow non-banks, corporates (like Amazon) or FinTech businesses to directly access consumer bank accounts to perform payments activities and/or gain access to customer data .