On 13th January 2018, the second European Directive on Payment Services, or PSD2 as it is more commonly referred to, will come into application.
With a just under a year to go until implementation, Shahrokh Moinian, Deutsche Bank’s Global Head of Cash Management Corporates, explores PSD2’s potential impacts in the Asian Banker.
“PSD2 is much more than a regulatory update. It will have widespread implications – both in Europe, and beyond.” By licensing third party payment providers in the EU, and obliging banks to offer these new players enhanced access to customer account information (via a new “third party interface”), PSD2 will generate competition and a new wave of innovation in the payments market. If open API’s are used to build the new interface between third parties and traditional market players, PSD2 could even catalyse a new era of open banking.
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