The new EU Payments Services Directive (PSD2) is set to revolutionise the European payments market. In addition to driving competition, innovation and transparency in the payments space, the regulation also aims to enhance the security of internet payments and account access
The Directive’s implementation deadline of January 13, 2018 – by which time member states are required to incorporate PSD2 into national law – is fast approaching. As such, organisations in the regulation’s scope must ensure they are “PSD2-Ready”. They must have a clear project strategy underpinned by an in-depth understanding of the required legal and regulatory changes – as well as timelines for their implementation processes.
To assist organisations in this crucial implementation phase, Deutsche Bank has released a new paper, entitled: “Are you PSD2-Ready – A guide to the latest information and sources of support”. Produced in collaboration with PPI AG, this document not only covers the latest developments and most-important intricacies of the regulation, but also highlights the important next steps which market participants must now take.
The key message?
To ensure their PSD2 projects are successful, organisations must not only ensure that they are compliant in time for the January 2018 deadline. Rather they must keep in mind the wider implications of PSD2.
Crucially, they must ensure that sooner, rather than later, they have in place a clear project strategy to meet the requirements of the Regulatory Technical Standard (RTS) for Strong Customer Authentication (SCA) and Common and Secure Open Standards (CSC). Even though elements of this RTS remain unclear, and even though, with an 18 month implementation period, this RTS will only come into force in the first half of 2019 (at the earliest), banks (and others who service customer accounts) should not wait until the final version of the RTS comes into force to start their preparations.
After all, we believe PSD2, in particular the RTS for SCA and CSC, represents far more than a “compliance exercise” for these market players. Rather, it provides a significant opportunity for organisations to future-proof their business; an opportunity to become Open Banking-ready; and to offer corporate clients faster, safer and more convenient payments.
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