PSD2

On 13 January 2018, the new European Payment Services Directive (otherwise known as “PSD2”) came into force. The purpose of PSD2 is to promote the development and growth of digital payment services (payments made via apps and mobile sites), making them more efficient, competitive and secure for users.

PSD2 governs new payment services provided by non-banks, known as “third-party providers”, or TPPs.

The various types of TPP and the roles that can be played by them are as follows:

• PISP (Payment Initiation Service Provider): these are businesses which, with the client’s express authorization, provide the user with payment initiation services, acting as an intermediary between the bank and the holder of the payment account – which is accessible online – to initiate payment to a third party as beneficiary of the instructions. For example PISPs allow the user to make a payment from their own account to a seller by using software which acts as a “bridge” between the two accounts.
• AISP (Account Information Services Provider): these are business which allow the user, who is holder of accounts that are accessible online, to obtain exhaustive information on the payment services used by the accounts held in their name. The user may, for example, use an AISP in order to have an overview of their own financial situation, or to analyse their spending habits and/or future financial needs.
• CISP (Card Issuer Service Provider): these are businesses that issue payment cards, settled on a payment account which is  accessible online opened at different credit institution from the one that issues the card. CISPs do hold clients’ funds themselves, but can make prior enquiries with the bank at which the account is open, to check whether the funds are available for the arranged transaction.

From 1 June 2019, PSD2 offers holders of an online banking account the possibility of using TPPs.

If authorized to do so, TPPs can :(i) access information on your account; or (ii) carry out transactions (such as transferring money or making payments in stores); or (iii) retrieve data and show them on other digital applications than those which the bank makes available.

A free-phone number has been available for customer support on PSD2 issues: 800403203 (+39-01311923160 from outside Italy).