Banks could face competition from mobile wallet (m-wallet) providers, technology companies, financial technology (fintech) providers and major retailers in the new market for payment initiation services, according to a new report. A new market for payment initiation services is set to stem from the introduction of reformed EU laws on payment services, PSD2, which was finalised earlier this year and must be written into national laws across EU countries by 13 January 2018.
Under PSD2 banks and other payment service providers (PSPs) must give so-called payment initiation service providers (PISPs) access to their customers’ accounts so as to facilitate transactions ordered at the customers’ request. However, in return, PISPs must observe a number of data security obligations and takes on certain liabilities in relation to any unauthorised transactions it is responsible for.
Sourced through Scoop.it from: www.out-law.com