Payment Services Directive
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Search complete. 66 mentions across 14 episodes found for "Payment Services Directive".
Oct 28, 2026
Simon TaylorGUEST
Again, so this is me sort of in 2009, 10, getting really close to where's innovation happening and where's the old tech and how do these things intersect? I then led some payments change over at Barclays, mobile payments change in particular.
Simon TaylorGUEST
And I sat in the same team who was doing swift change and separate implementation and starting to look at PSD2 in the early 2010s.
Simon TaylorGUEST
And so I get a real grounding in global payments and sort of how correspondent banks start to think.
Simon TaylorGUEST
And of course, that's where I start to get curious about Bitcoin and Ethereum.
Jasmine ChanaHOST
And how does PSD3 affect businesses like TrustApp who sit between buyers, sellers and payment rails?
Conor LydenGUEST
Yeah, so I think under PSD2 you had like the commercial agent exemption, which a lot of marketplaces would utilise really where, you know, you could be an agent acting on the buyer and seller's behalf.
Conor LydenGUEST
And so you didn't need to be regulated yourself ultimately.
Conor LydenGUEST
Whereas that changes under PSC3.
Jens SeidelHOST
So today we're going to talk about open finance.
Jens SeidelHOST
And before we even do that, can you help us out here to understand what's the difference between PSD2 in Europe and open banking and now open finance? Is it all the same or what are the differences here?
Ivo JeníkGUEST
Yeah, that's a very interesting question because, in effect, the payment service directive is, in a sense, at the origins of open finance idea with the regulation or standardization of how information can be exchanged among financial institutions.
Ivo JeníkGUEST
Now, a lot of people would argue that that was just the first step towards what we call today open finance or open banking.
Ivo JeníkGUEST
with the UK actually taking that PSD2 initial layer to the next level and basically mandating nine largest banks to open up their databases with the consent of customers and share the customer data.
Ivo JeníkGUEST
I think the concept has grown quite significantly to what we now call really open finance, not only open banking, but the logic is still the same.
Ivo JeníkGUEST
It's a concept that allows customers, in effect, to ask their financial institution to share data with another financial institution and hopefully benefit from that process.
14 MINS LATER
Ivo JeníkGUEST
And I think you frame it very well saying that there is a certain amount of trade of possibly at play.
Kevin ArmstrongGUEST
So I think the concept of... consent and consent of charge is much more mature across the EU in general.
Kevin ArmstrongGUEST
The idea of PSD2 and some of these other protocols done for consumer regulatory purposes, those protections don't necessarily, they're not as mature in the States, for example.
Kevin ArmstrongGUEST
And one way that played out was capturing customer consent on a payment method for Bazoom introduced additional friction and it introduced additional churn because we had to capture consent from the customer twice.
Kevin ArmstrongGUEST
Once when they added the payment method for the first time, say they were buying an Amazon one-off purchase for like a CD or a gardening set that they were looking to get delivered on the retail marketplace.
15 MINS LATER
Kevin ArmstrongGUEST
And they ended up kind of canceling out and creating this noise effect where we couldn't really see the hidden metric there of, hey, this population that started is now churning out much higher, even though we're getting this huge customer base inflow.
Kevin ArmstrongGUEST
that huge customer base that's coming in is eventually going to start to get saturated and is going to become a huge problem because of the churn.
Kevin ArmstrongGUEST
And so what ended up happening is we worked across our business development team, across our legal team, to work directly with the Central Bank of Brazil to implement a reoccurring concept with PIX where we could save and capture that customer mandate modeled after that PSD2 work that is done in the EU where you capture consent, you save it to the customer's profile for that business line, and you can then auto-charge that customer in the future.
Kevin ArmstrongGUEST
And that took about a year of working through to better understand and to have that.
Elias TayehGUEST
Actually, somebody is accountable, but they didn't know how to fix your car's problem.
Elias TayehGUEST
And this is where most probably, again, I'm mentioning the regulations in Europe because they have so many, like PSD2, MICA, DORA, whatever.
Elias TayehGUEST
They put a clear design for accountability.
Elias TayehGUEST
And they force the CEO and the teller at the reception to go and do continuous development programs.
Rik CoeckelbergsHOST
And it has to do, I think, with the market where the corporate segments that the big banks in the Netherlands try to serve through APIs is being served in Belgium through Isabel, an intermediary.
Rik CoeckelbergsHOST
And so the opportunities of PSD2 need to be found in the retail space, which was much less open in grasping the opportunities of PSD2 APIs.
Rik CoeckelbergsHOST
And so I think the hunger to invest in premium services, et cetera, never really took off in Belgium.
Rik CoeckelbergsHOST
Yeah,
5 MINS LATER
Rik CoeckelbergsHOST
And then politically speaking, yeah, I could potentially understand because it's more about like getting that right sentiment and then showing the voters what you do.
Rik CoeckelbergsHOST
But if there's no proven use case, then you are forcing an industry to do massive investments who at the end are being paid by the customer as well.
Rik CoeckelbergsHOST
And there's no buying from those organizations to properly do their job as what happened in the beginning of PSD2.
Rik CoeckelbergsHOST
where the quality of APIs was not satisfactory.
TessNARRATOR
Regulation, especially in banking, has always been one of the major drivers for the execution of innovation, he notes.
TessNARRATOR
PSD2 and Basel III both steered banks towards making changes to the way they operate or the way they deal with their customers, he explains.
TessNARRATOR
The rules create necessary momentum, and the more regulation there is around topics such as stablecoin and digital assets generally, the more comfortable corporates will feel in using these new rails.
TessNARRATOR
Advance party.
David MeyerHOST
You suck it up.
David MeyerHOST
The relevant law here is the EU Payment Services Directive, which came into force about eight years ago.
David MeyerHOST
And the aim of that law is to increase consumers' trust in the European banking systems.
David MeyerHOST
What the law says about phishing is that if you're a victim, you must immediately notify your bank and the bank must immediately refund you the amount of the fraudulent transaction.
speaker_0ADVERTISER
that it has refunded.
David MeyerHOST
Now, you'd think that this was pretty clear cut, but this is an EU directive and not a regulation, which means that each country gets to transpose the directive into their national law and put kind of their own national twist on it.
David MeyerHOST
And the Polish interpretation of the payment services directive is that if the bank suspects that the consumer has been grossly negligent with their credentials, then the bank can simply refuse to pay out that refund in the first place.
David MeyerHOST
And this is pretty common.
Dan MurphyGUEST
I mean, going back to the authorization conversation, which I think is actually, you know, I think that's really where a lot of the action is going to be on figuring out liability is going to be in the first instance.
Dan MurphyGUEST
What are you authorized for all of that? Also in the UK, also in the EU, when they were doing PSD2, when they were doing payment initiation abilities way before any of this was going on, back in the early, early open banking days.
Dan MurphyGUEST
There was a lot of experimentation they had to do on that too.
Dan MurphyGUEST
One thing that you mentioned that didn't work out too well was they had reauthorization obligations.
Scott McInnesGUEST
PSD3, PS-PSR about to be formally adopted by the EU legislator in the coming months, I guess.
Scott McInnesGUEST
Um, all the changes it will bring about to [lip smack] players that are currently regulated under PSD2, players that are not currently regulated under PSD2 but might get impacted by PSD2 or PS, PSD3, PSR, and might potentially get regulated in the future under PSD3, PSR.
Scott McInnesGUEST
Um, [lip smack] the commission obviously being in, in, um, uh, at various conferences and events saying that PSD3 and PSR is not a revolution, unlike PSD2 that arguably was.
Scott McInnesGUEST
PSD3 being, uh, PSD3 and PSR being an evolution.
Scott McInnesGUEST
Um, I don't know if that's entirely true, to be quite honest.
Scott McInnesGUEST
But there are things under PSD3, PSR that are, that I think might deserve the label of a revolution.
Scott McInnesGUEST
I'm thinking of things like, um, the exchange of in- of, of information that will now be allowed, uh, under PSD3, PSR between regulated payment service providers, PSPs, but also between regulated PSPs and non-regulated PSPs, like large online platforms, to allow those parties to exchange information for the purpose of fighting fraud, which I think is quite, quite revolutionary, um, I would argue.
Scott McInnesGUEST
Um, and as I mentioned before, some companies, in particular platforms that today, um, operate on an unregulated basis under PSD2 but might need to get regulated under PSD3 and PSR, and that is obviously also quite, quite impactful, I would think.
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