What is PSD2 and how can it help me?
The PSD2 (Revised Payment Service Directive) will make the provision of payment initiation services and account information service regulated payment services.
The definition of “payment services” will expand under PSD2. Two new types of payment service have been added:
Do I need to have a license to operate as payment institution?
Once PSD2 is implemented, the providers of payment initiation services and account information services will be regulated for the first time. The PSD2 sets out authorisation/registration requirements on providers of these services, but in some respects less burdensome compared to providers of other and more established types of payment services.
Providers of account information services will only need to “register” with their national regulator rather than be authorised as a payment institution.
When will the regulation be implemented?
The deadline for implementation of the PSD2 into national law differs from country to country and the dates are yet to be confirmed. The implementations are expected to happen during 2018, but there is potential for further postponement.
Where to apply for authorisation?
You apply to the financial supervisory authority in your home member state, i.e. the country in which your registered office is situated.
What information is required in the application?*
The information to be provided for the authorisation include, for example,
- The applicant’s programme of operations
- Its business plan
- Evidence that the payment institution holds initial capital
- The measures taken for safeguarding payment service users’ funds
- The applicant’s governance arrangements and internal control mechanisms
- The procedure in place to monitor, handle and follow up a security incident and security related customer complaints.
* Please note that the information and the process might differ from country to country. For example, the national regulator may deem existing payment institutions to be automatically authorised if it is satisfied that they meet all PSD 2 requirements. Hence we refer you to the local authority for details on the application process and the information to be provided.