Why SA should consider EU-style payment rules

Why SA should consider EU-style payment rules

EUROPE’s Payment Services Directive 2 (PSD2) is expected to come into force in January 2018. With some banking industry commentators referring to it as the biggest development in banking history, one has to wonder why SA has not already begun to follow suit.

PSD2 was drafted to further standardise, integrate and improve efficiencies between EU states as well as stimulate competition in payments across the eurozone. Effective regulations also improve protection of consumers as well as bringing the obvious benefits of more options, cost savings and increased service.

Although a large chunk of the attention has been focused on the open banking APIs and the standards surrounding this requirement, the new ways that consumers can pay for purchases should be giving local bankers pause for thought.

Sourced through Scoop.it from: www.bdlive.co.za

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