PSD2, the Payment Services Directive, is a mandate of the European Union (EU) that enables business and consumer banking customers to use third-party providers to manage financial transactions. The regulation requires banks to provide these third-parties, including PISPs (Payment Initiation Service Providers) and AISPs (Account Information Service Providers) access to their customers accounts through open APIs.
PSD2 fundamentally changes the nature of retail banking when any of the participants (bank, customer, merchant, or third party) resides in Europe. 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 consolidated list of all consumer transactions in a single location, organizing the hitherto haphazard front-office of a typical retail bank.
PSD2 also supports faster-payments. Businesses and consumers alike can by choice bypass credit-cards entirely and pay merchants securely and efficiently from their bank accounts, with the attendant benefits of zero commissions and greater efficiency.
Fiorano PSD2 is an out-of-the box PSD2 solution built on the industry's leading banking Integration and API Management infrastructure. Fiorano PSD2 masks complex technical details to provide a seamless solution that integrates with all leading core-banking platforms and can be implemented in weeks. Key features of Fiorano PSD2 include:
- 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 bank-account 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
- Complete cryptographic trace of each transaction with detailed logs, timestamps and comprehensive support for non-repudiation