PSD 2

EUROPEAN DIRECTIVE IMPLEMENTATION

Payment Services Directive is an EU directive, managed by the European Commission (General Directorate for Internal Market), for regulation of payment services and payment services providers’ activity throughout the European Union (EU) and European Economic Area (EEA). The purpose of the directive was to enhance pan-European competition and participation in payments industry of non-banking entities and also to provide a fair competitive environment by harmonizing consumer protection regulations with the rights and obligations of payment providers and users.

October 8, 2015 the European Parliament adopted the European Commission’s proposal to create a framework of rules designed to make the European payments safer and more innovative (PSD2). The new form of the directive has as purpose to better protect consumers when paying on-line, to promote the development and use of innovative online and mobile payments and make the European cross-border payment services more secure.

NATIONAL AUTHORITY FOR CONSUMER PROTECTION

National Authority for Consumer Protection which acts as the specialized competent authority of the central public administration, having legal personality, subordinated to the Government and  coordinated by Ministry of Economy, Trade and Tourism, is financed entirely from the State budget, through the budget of the Ministry of Economy, Trade and Tourism.

The authority coordinates and defines the strategy and Government policy in the field of consumer protection, it takes action to prevent and combat practices that harm life, health, safety and economic interests of consumers. The authority optimizes the State activity in the area of direct and indirect consumers’ protection by market research, informing and educating consumers and strengthening decision-making capacity.

A.N.P.C. website

COORDINATION, SUPPORT AND STANDARDIZATION

  • In the context of the changes brought by the implementation of the 2nd Payment Services Directive (DSP2) within Romanian legislation, A.P.E.R.O., as representative trade body of the electronic payments industry and the only entity that brings together all players inhabiting the payment ecosystem, is aiming to coordinate the process of redistribution of roles and responsibilities between current entities (ASPSP) and the future ones (PISP and AISP) which are going to coexist within the new ecosystem and to supervise the creation of a fair competition framework between them.
  • To this end A.P.E.R.O. will work both with public and private partners.
THE OBJECTIVES OF THE WORKING GROUP
  • Increasing awareness among industry professionals of DSP2 aim and objectives
  • Aggregating a common point of view of industry representatives concerning the implementation of DSP2 within local legislation
  • Support the authorities in implementing the directive
  • Ensuring a climate of fair competition among all exponents of electronic payments ecosystem.
  • Coordinating industry representatives in order to obtain a standardized solution for data access.
DSP2 WORKING GROUP
  • Alpha Bank
  • Banca Transilvania 
  • BRD
  • Bancpost
  • Raiffeisen Bank
  • UniCredit Bank
  • ING Bank
  • Piraeus Bank
  • BCR
  • Credit Europe Bank
  • OTP Bank
  • Garanti Bank
  • Patria Bank
  • Visa
  • Mastercard
  • Printec Group
  • Provus Services
  • Pago Plătește
  • CEC Bank
  • Banca Românească
  • Oberthur

PROJECT LEADER AND PROJECT MANAGEMENT

Insights Enterprise

The company was empowered by A.P.E.R.O. to lead the project management, by providing the coordination of all other partners in order to achieve the project objectives.

Payment Services Directive 2

Aspecte esentiale

  • Payment Services Directive (PSD) was adopted for the first time by the European Union (EU) in 2007. The directive has provided a legal framework for payments in Europe, in order to increase the speed, efficiency and ease of payment services use.
  • PSD review by releasing PSD2 was proposed as a responding solution to changes in the ecosystem of payments, as well as to generate other improvements in the field of payment services in Europe. The review included a number of changes and improvements of the initial PSD, in order to provide legal clarity and fair competition between existing actors and new actors entering into the ecosystem.
  • PSD2 is a directive generated by the progress achieved in data and technology field, aiming to increase the competition, to generate more innovation and transparency in the field of payments and, at the same time, enhancing security of internet payments and access to account.

• To contribute to the achievement of a more integrated and more effective European payment services market;

To stimulate competition between payment services providers by encouraging the entrance of new actors and the developing innovative services for mobile payments via internet;

• To increase measures for consumers’ protection against fraud by implementing the concept of “Strong Customer Authentication” for electronic payments;

To stimulate people to access electronic payments by encouraging lower prices for payment services.

To facilitate the implementation of common technical standards and to increase the level of interoperability.

Area of applicability

  • Area of applicability is enlarged to include transactions initiated from outside Europe and the term “payment institution” it redefined. While PSD1 only applies to transactions initiated and completed within the EU, PSD2 extends the area of applicability to transactions initiated from outside the EU, but completed within the EU. The directive also extends the definition given in PSD1 for “payment institution” in order to include new categories third-party payments providers as third-party.

Third-parties payment services initiators (PISP)

  • PSD2 boosts European competition in the field of payment services by regulating new categories of actors called payment initiation services providers (PISPs). These services operate on the basis of a concept of “push payments”, as opposed to the traditional flow card based which operate with the concept of “pull payments”.

Third parties with access to account information (AISP)

  • PSD2 regulates another category of actors, called providers for account information service (AISPs). These providers support the customers by being aggregators of information from the payment accounts the customers operate.

Ban surcharging the card payment

  • PSD2 has as purpose to standardize the various approaches of overcharged card-based transactions which are currently applied in the entire EU.

The security of online payments and the access to account +

  • PSD2 introduces new security requirements for electronic payments and access to account, along with new security challenges regarding the AISPs and PISPs.

BANKS

The shift from traditional banking to open banking determines the banks seek new business models and redefine their role in the ecosystem of payments.

PAYMENT SERVICE PROVIDERS (PSP)

Two factors authentication model seems to be an additional challenge in PSPs’ e-commerce activity facing the risk that the client experience to be affected.

TECHNOLOGY COMPANIES (FINTECH)

The opportunity created by DSP2 by opening the access to customers’ account information for technology companies provided enable them to launch their own financial service offer.

TELECOMMUNICATIONS OPERATORS (TELCOS)

The provisions of DSP2 put the telecommunications operators in front of a tough choise: either they opt for complex but regulated financial services or they stay in the unregulated financial services area, but of little value.

LARGE ONLINE STORES (ONLINE RETAILERS)

While the access to customers’ account information seems to be an opportunity for large online stores, additional security rules put at risks the experience of their customers.

ADOPTION IN NATIONAL LEGISLATION

January 2018 – deadline until the Member States have to transpose into local national legislation the provisions of DSP2.

October 2018 – deadline until banks have to comply with the provisions of RTS.