Payment Services Directive - PSD2

Realize Transparency and Seamless Compliance

 

What is PSD2?

The Revised Payment Services Directive (PSD2) is a mandate of the European Union (EU) that enables business and consumer banking customers to use third-party providers to manage financial transactions. It requires banks to provide third-parties, including Payment Initiation Service Providers (PISPs) and Account Information Service Providers(AISPs) access to their customers’ accounts through open APIs.

Third-party providers will have access to customer account information and can initiate payment processes on a customer’s behalf. This expands partnership opportunities for banks by combining services with FinTech application provider companies to create new value chains and a new experience for customers

PSD2 - A Revolution in Retail Banking

PSD2 offers an opportunity for financial institutions to step up their digitalization efforts and modernize their IT infrastructure. Financial organizations seizing this opportunity can create a strategic business advantages and differentiate themselves in the market.

PSD2 fundamentally changes the retail banking environment when any of the participants (bank, customer, merchant, or third party) resides in Europe. It encourages the role of third party providers in the retail banking chain, leading to innovation in the banking sector and unlocking valuable customer data. Businesses and consumers alike can choose to bypass credit-cards entirely and pay merchants securely and efficiently from their bank accounts, with the attendant benefits of zero commissions and greater efficiency.

Type of Third Party Service Providers in PSD2:

Account Information Service Provider (AISP):-

AISPs offer a consolidated view of all bank accounts of a customer even if these accounts are with multiple banking institutions. The AISP, however, cannot use the customer data or initiate any payment process on a customer’s behalf.

Payment Initiation Service Provider (PISP):-

With PSD2, PISPs effectively take over the "front office" activities of all banks. End-users consolidate information about all bank-accounts with a PISP; authorized payments to a named beneficiary are then securely managed by the PISP. The PISP also maintains a list of all consumer transactions in a single location, organizing the hitherto haphazard front-office of a typical retail bank.

Fiorano PSD2 Solution - Realize Transparency and Seamless Compliance

With the deadline to comply with PSD2 fast approaching, banks must fight against time to get their IT systems ready. Banks need API Management, and Enterprise Integration for interaction with PISPs, AISPs and other banks.

Fiorano PSD2, an end-to-end PSD2 solution, built on the industry's leading banking Integration and API Management infrastructure, provides a comprehensive solution for banks to become PSD2 compliant. Fiorano PSD2 masks complex technical details to provide a seamless solution that integrates with all leading corebanking platforms and can be implemented in weeks.

Key features of Fiorano PSD2:

  • Secure APIs to expose critical account information; same APIs across all Banks for easier third-party integration
  • Predefined, customizable flows for typical payment scenarios: bank to beneficiary, consumer to merchant, etc.
  • Detailed Transaction History for all consumer account activity; find details on any transaction from any bankaccount to any beneficiary within seconds
  • Out-of-the-box support for advanced PSD2 requirements: per-transaction exchange-rates, fees, time-to-completion estimates, transfer-completion alerts and more
  • Seamless integration with all core-banking systems, reducing time-to-implementation

Download Fiorano PSD2 Solution Brochure

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