Updating the Rules
The European Commission has released proposed updates to the rules regulating payments, potentially reshaping open banking. The proposed rules manifest in a revised Payment Services Directive proposal (which will replace PSD2 with PSD3), new Financial Data Access (FIDA) rules, and separate Payment Services Regulation (PSR).
Implications of the New Proposals
The implications of these measures will not only be far-reaching for banks and fintechs, but they also reflect a significant shift in the open banking industry. These proposals aim to enhance the adoption, functionality, and performance of open banking Application Programming Interfaces, constituting a much more ambitious scope than previous regulations.
Six Key Goals
The proposal outlines six key objectives: combating payment fraud, improving consumer rights, leveling the playing field between banks and non-banks in access to payment systems, boosting open banking, improving cash availability in shops and via ATMs, and enforcing the rules more effectively.
Excitement and Concerns
While some, like Todd Clyde, CEO of Token.io, view these proposals as a step forward in the payments industry showing a commitment to a stronger infrastructure for open banking-powered payments solutions, others express concern. The European Commission has allowed for banks to potentially charge for data access, a point that has raised qualms about adoption friction and the principle of fair use of consumer data.