In this video, Deutsche Bank discusses the new EU Payments Services Directive (PSD2) with Finextra to explain what changes it invokes and what the implications may be for the market. Christian Schaefer, Head of Payments, Cash Management Corporates, begins by discussing PSD2’s market context, seeing it as a further step in the development of the European payments market towards the EU’s overall goal of creating a single digital market.
He summarises its three key change areas; the most relevant of these will oblige banks to open up their customer account interfaces to new third party providers. Besides that, PSD2 will strengthen security in internet payments by introducing strong customer authentication, and extend many – though not all – of its predecessor directive’s price and transparency provisions to payments in all currencies, and to payments where only the ordering or the beneficiary party is located in the European Economic Area (not both).
Christian Fraedrich, Product Manager, Treasury Payments & Euro Clearing, Institutional Cash Management, explains that both retail and corporate banks will need to make significant adjustments to their systems and processes at every point along the value chain, while correspondent banking will remain largely unaffected.
However, for corporates, Christian Schaefer foresees no major compliance burden – on the contrary, they should benefit from the emergence of new third party services and may consider adapting their business or operational models to include them. Jan Lisaus, Head of Cards and Payments, Private & Business Clients, relates PSD2’s benefits for consumers who will enjoy enhanced data protection, greater security when making internet payments, and reduced liability for unauthorised payments.
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