PSD2 and the emergence of new business models in Europe
With effect from January 13, 2018, the EU member states have implemented PSD2 in their national regulations, bringing clear guidelines and national laws to the EU countries which mandate banks – based on customer’s consent – to comply with the demand of opening their APIs and customer data for licensed third-party providers (TPPs), which include:
Payment initiation services providers (PISPs): A PISP lets individuals pay companies directly from their bank account rather than using their debit or credit card through a third party such as Visa or Mastercard.
Aggregators & account information service providers (AISPs): An AISP lets individuals see all of their account information from different bank accounts in one place online or in a mobile app. AISPs can include budgeting apps and price comparison websites offering budgeting help and product recommendations.
Source: PSD2 – Second Payment Services Directive, Association of Latvian Commercial Banks
By introducing new roles, PSD2 fixed the problem with PSD, which could no longer adequately cover players outside of its regulatory framework. Both PISPs and AISPs need customers’ explicit consent before providing...