The introduction of the EU’s revised Payments Services Directive (PSD2) will create a range of challenges for payment service providers who will have to comply with new requirements for stronger authentication and data sharing while also adapting to competition from new entrants, says Helene Oger-Zaher, retail banking conduct supervision expert at the European Banking Authority (EBA).
“That being said, PSD2 and the EBA instruments under PSD2 also have the potential to bring opportunities to the market,” she writes.
This article provides an overview of PSD2 and the four legal instruments the EBA is currently developing in terms of the opportunities and challenges brought by the new regulations, before taking a look at the stronger authentication and data sharing requirements and how this will impact existing payment service providers.
Oger-Zaher then explains how PSD2 will affect both banks and new market entrants.
“PSD2 and the EBA instruments will undoubtedly bring fundamental changes to the market,” she writes. “The EU payment market after PSD2 will not be the same,”
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This item is part of What's New in Payments.