PSD2 & Account Access

Transcription

1 PSD & Account Access Impacts & Opportunities ESF+ 13 th April 016

2 1 PSD Background Potential Opportunities

3 1 What are the key PSD elements? 1 Scope Extension Payment Initiation and Account Information Services 4 Strong customer authentication (inc. factor authentication) One Leg transactions Third party provider (TPP) regulation and access to accounts and payment systems 5 Enhanced customer rights to refunds on DD s, and reduced consumer liabilities for nonauthorised payments 3 No surcharging on regulated card products 6 Fee free exit for consumers after 6 months 3

4 1 What is access to the account? Third Party Providers: Account Information Service (AIS) Payment Initiation Service (PIS) Funds Availability One time access to a consumer s online banking presence to collect transaction history information One time access to a consumer s online banking account to enable the authorisation of a transaction (using a credit transfer) but not to hold funds at any time Ongoing access to a consumer s account to allow card issuers to establish if a specific amount is available (returns a yes/no answer) required notification by consumer Requires: TPP must be licensed, and hold appropriate insurance No discrimination by AS PSPS (typically banks) Shared liability for defective transactions between AS and PI PSPS No contract necessary with payer by PI PSP TPP to authenticate itself to the AS PSP every time Keep customer s security details secure 4

5 1 How do payment initiation services work? Check-Out Select PSP Authenticate Create Authorise Alert Settle The consumer clicks check-out in the website, and selects the credit transfer scheme button e.g. Sofort (rather than Visa/MC/ PayPal) The consumer then selects their account servicing payment service provider (typically a bank) from a dropdown list, or types in their name The consumer then enters their payment service provider credentials, including their passwords and is authenticated The scheme then creates a credit transfer order and inserts the payee s details. This automated process avoids any mistyping The consumer authorises the payment with their account servicing payment service provider The scheme alerts the merchant/payee that the funds have been authorised The credit transfer scheme then settles with the merchant/payee according to the local clearing cycle typically the next day 5

6 1 PSD Background Potential Opportunities 6

7 How will the PSD impact European markets? 15% 63% Source: PSE Consulting Analysis 014 ONLINE SPENDING GERMANY ONLINE SPENDING UNITED KINGDOM 7

8 Products and Services Account Transfers Business Business Who most likely to use these services? Government Household Insurance Investments & Corporates Goods Pensions Income Tax White Goods Health Property ERP Car Tax Furniture Life Equities Supply Chain Passport Electronics Building Savings Treasury Travel Motoring FX & Remittances Gambling & Gaming SMEs Hotels Sales Travel Gambling Accounting Car Hire Servicing High Value Gaming Supply Chain Airlines Spares Remittances Vertical Markets Payment Initiation Account Information Payment Initiation 8

9 Who could support these new services? Intermediaries & Schemes Independent Wallets Payment Processors Merchant Gateways 9

10 Customer Sign-Up Collect credit histories to support more accurate credit scoring Verify source of funds and available balance Verify identity via bank account Accelerate sign-up and minimise drop-out Click to See Video 10

11 POTENTIAL HISTORICAL Decoupled Accounts Current Account Merchant Current Account Funds Check Merchant 11

12 Potential Opportunities Develop new bank-side infrastructure to support third party access to payment accounts for both payment initiation and information access Offer payment processing service in partnership with banks to business service providers that initiate transaction e.g. accounting, treasury, supply chain, ERP to jointly deliver services to corporates Develop a branded transfer service for credit transfers for use at BC merchant locations (equivalent to Trustly/Sofort) Create a hybrid CT/DD schemes/product that enables account to account to support recurring transactions (ideal has already done this) Support large ecommerce merchants which generate high volumes of consumer CTs or have high ATVs with a white label processing/gateway solution Create processing infrastructure to support a back to back credit availability service to enable decoupled card transactions 1

13 Thank You Chris Jones 13