How will PSD2 affect my business?
New EU banking laws are set to transform payments across the region. But many businesses accepting consumer payments are understandably keen to know how it will affect them. To answer their questions, Worldpay has produced a new report.
The EU’s second revision of the Payment Services Directive (PSD2) was created to boost competition and innovation in the financial services sector and create a more level playing field for consumers and payment providers1. It does this by creating a framework to make consumer banking data available to fintech firms and retailers, if the individual agrees. Known as Open Banking in the UK, it is hoped this will help to spark innovative new services. For example, new data insight tools could help merchants make better decisions and offer a smoother payment experience. Another example is a service allowing customers to pay for goods online by direct bank transfer, rather than by card. This could reduce merchants’ processing costs and chargeback risks.
PSD2 will also introduce new rules on authentication for online customers, known as Strong Customer Authentication (SCA)2. Although most of the PSD2 rules took effect in January 2018, SCA will not come into force until 14 September 2019 and it may be a while longer before we start to see innovative new services emerge. To find out more and how you need to prepare for PSD2 visit our dedicated site for more information.