All respondents to an EAST Poll that ran from May to August 2018 felt that the new Payments Service Directive 2 (PSD2) will revolutionise the payments system. 58% felt that it would have an impact on a medium or shortt term basis and 42% felt that the impact would be on a long term basis.
PSD2 came into force on 13 January 2018. Banks need to adapt to the required changes that open many technical challenges, but also many strategic opportunities, such as collaborating with fintech providers, for the future. The PSD2 aims are to:
- better protect consumers when they pay online
- promote the development and use of innovative online and mobile payments such as through open banking
- make cross-border European payment services safer.
PSD2 is an EU Directive, administered by the European Commission (Directorate General Internal Market) to regulate payment services and payment service providers throughout the European Union (EU) and European Economic Area (EEA).