Taking into account the substantial technological and market changes in the past decade, EU Payment Services Directive’s revision – known as PSD2 – comes into effect in January 2018. Its changes, however, represent more than a regulatory update; in fact, PSD2 has the potential to propel European payments into a new era of digitalised services.
In an article for IBS Journal, Shahrokh Moinian, Global Head of Cash Management Corporates, Deutsche Bank, reflects on how the forthcoming regulatory changes could usher in enhanced data security procedures and greater innovation in the payments sphere.
For Moinian, while financial service providers will be tasked with adapting their process and IT systems ahead of January 2018’s effective date, PSD2 represents an opportunity for meaningful change.
He writes: “PSD2 places welcome pressure on existing industry players to collaborate if they wish to operate a common third-party interface, and obligates both incumbents and third parties to cooperate in order to ensure the smooth running of new third-party functions. These burdens are nonetheless a relatively minor price to pay for a more digitalised open payments market across the EU/EEA.”
To read the full article, please click here (please note, this article lies behind a paywall).