PSD2 stands for Payment Services Directive No. 2, or the Norwegian Payment Services Directive. It is the latest version of the EU Directive that regulates payment services within the EU and EEA. As Norway is part of the EEA, we are obliged to follow this directive.
In this context, ‘payment services’ means something that is offered to consumers and businesses in order to, amongst other things, make all types of payments, both online and in-store. In addition, there are other types of services such as access to accounts, withdrawals, deposits and information services concerning payment accounts.
PSD2 enables these payment services to be provided with the aid of operators other than banks. On behalf of consumers, these operators can make basic payments and collect information from their accounts, and compile them across the banks if they have a customer relationship with several banks.
There are many other operators which are not a bank today, and until now it has been up to each country to regulate these operators. PSD2 will contain a common set of requirements which all countries must follow. This is being done with a view to security, reporting, liability regulation and consumer rights, while at the same time it also promotes competition in the best interests of the customer.
PSD2 was introduced because the EU wanted all its citizens and enterprises to have access to secure and efficient payment services which work throughout the whole of the EU’s internal market.
It was also intended to stimulate trade between the member states and promote competition in the payment services market. A further aim was to promote innovation and access to accounts, and improve the interaction between different types of operators and further harmonise the regulations within the EU.
Cegal does not work directly with PSD2, but through our Cegal Multi Channel Invoice solution, we have ready-made integrations for the most widely used payment services on the market. PSD2 was established to increase competition, promote innovation and improve the security of payment solutions.
Thus, future multichannel solutions could potentially include even more payment options, including those from other players, not just those which currently come from banks.