PSD (Payment Services Directive)
PSD (Payment Services Directive) was adopted in 2007 to create rules and guidelines for simplified, efficient modern payment services in the European Union.
However, as technology progressed PSD was not adequate to promote innovation, create competition, secure payments and protect consumers. Ø
As a result, PSD2 (The revised Payment Services Directive) came into play to increase security and create more innovative digital payments for today’s digital consumers.
Key aspects of the PSD2:
Banks to have stricter customer authentication
Banks to open their customer data with certified TPPs (Third Party Provider)
Open Banking is the secure way to give providers access to your financial information.
Open banking is a financial services term as part of financial technology
The use of open APIs that enable third-party developers to build applications and services around the financial institution.
Greater financial transparency options for account holders ranging from open data to private data.
The use of open-source technology to achieve the above
Open Banking Participants