PSD2 a revised legislation of the existing PSD1 dating 2009, regulating the payments affairs in the EU and EEA, is enabling new payments participants access customer bank information and customer payment initiation by enforcing incumbent banks to open their systems and customer information. Innovative third party providers (TPPs), in the likes of fintech, Big Tech, but also incumbents such as acquirers, processors, payment service providers and innovative banks, are seeking to capitalize on this opportunity that will be market enforced by the end of 2018.
Inpay has been represented in a leading industry group (OTA Open Transaction Alliance) from the outset of the PSD2 draft proposals in 2014, by which early in-depth technical and business understanding of the opportunities and threats has secured, and influenced and supported the group work.
The Open Transaction Alliance (OTA) is a cross-industry initiative of payment practitioners including banks, payment service providers, account information providers, payments processors, merchant and consumer groups, and other stakeholders in the European payments ecosystem. The OTA fully endorses the aim of the revised Payment Services Directive (PSD2) to foster innovation by allowing new innovative services to be developed by third parties (‘Access to account’. The OTA is convinced that this will lead to an explosion of new and creative payment services that will be of benefit to consumers, merchants, bank and non-bank service providers and the European digital economy as a whole. Inpay is uniquely positioned to capitalize on the early development and has specifically focused on the opportunities within the low value payments P2P segment and its possible role to provide instant collection and account information services to Banks, Money transfer companies and other payment participants.
Inpay is excited with the new opportunies that PSD2 and XS2A brings and are strategically perfectly positioned to make full use of the new opportunities to even better service its clients – especially Financial Institutions from outside EU.