Payment Services Directive 2 (PSD2)
The Payment Services Directive 2 (PSD2) promotes an efficient market for the provision of payment services in Europe by setting up a joint legal framework that assures a high level of security and consumer protection while fostering innovation, customer convenience and competition in a technology and business-model neutral manner.
The PSD2 introduces two new types of payment services that were not regulated in the first Payment Services Directive:
Account Information Services
Means an online service to provide consolidated information on one or more payment accounts held by the payment service user with either another payment service provider or with more than one payment service provider.
Payment Initiation Services
Means a service to initiate a payment order at the request of the payment service user with respect to a payment account held at another payment service provider.
In addition, the PSD2 enhances the security requirements to be applied by account servicing payment service providers (ASPSPs, typically banks) to their customers, namely by imposing strong customer authentication (SCA) requirements in specific situations.
New Type of Players in the Financial Landscape
Account Information Service Provider
Account Information Service Providers (AISP) are the service providers pursuing the account information services defined above. Such services could imply the use of transaction data to analyze a user’s spending behaviour or aggregate a user’s account information from several banks into one overview.
Payment Initiation Service Provider
Payment Initiation Service Providers (PISP) are the service providers pursuing the payment initiation services defined above. Peer-to-peer transfers between friends and bill payments are among the payment initiation services we are likely to see after PSD2 implementation. PISP will create a software “bridge” between the customers and their bank accounts where the necessary information is exchanged to make the transaction.