Increased convenience and greater choice for customers
The aim of PSD2 is to increase competition and thus product range available for customers in the banking market.
PSD2 opens the banking market and allows more players to compete with banks, but it also gives the bank new opportunities to develop and collaborate with others.
PSD2 allows customers to use other financial players (third-party providers) for certain banking services such as account reviews - balance statements, transactions etc. - as well as for payments - pay bills, transfer money to own and others’ accounts.
If the customer gives a third party provider access to their payment account information and/or the right to initiate payments from their bank account, the banks must make this possible for the third party provider.
PSD2 is not only about third party access to customer account information and payment initiation. The new regulation will also improve payment transparency as payment service providers will have to give customers more information on transactions in all currencies and more protection in disputable cases.
PSD2 means that not only banks, but also fintech companies working in payments and financial information area from now on will be regulated and there will be clear rules for cooperation between banks and third-party financial services providers.