PSD2

Introduction

PSD2 is an upcoming payment service directive from the European commission. In short, the Directive states that banks need to offer payment APIs to third party-providers of financial services, also known as TPPs (Third Party Provider) under the XS2A (Access to account) rule. This creates some new roles in the payment landscape:

  • PISP (Payment Initiation Service Providers) will be able to initiate online payments from the payer’s bank account
  • AISP (Account Information Service Providers) will be able to extract and accumulate customer’s account data, including transaction history and account balance
  • ASPSP (Account Servicing Payment Service Providers) i.e. banks and financial institutions are the account providers that are required to offer APIs to PISPs and AISPs

The Directive will affect everyone in the shifting payment landscape. This includes banks, fintechs, the PCI (Payment Card Industry) as well as merchants. 

The PSD2 was implemented into the Croatian legislation by local transposition law “Zakon o platnom prometu” (Payment Transactions Act), published in the Official Gazette 66/2018 on 20 July 2018.

As a member of Croatian Banking Association (CBA), Istarska kreditna banka Umag d.d. has joined initiative to develop standardized API (Application Programming Interface) in relation to Third Party Providers (TPPs).

The purpose of the upcoming payment service directive PSD2 is to create an even playing field for payments and encourage innovation. The Directive has the potential to fundamentally alter the payment landscape as we know it.

Security, compliance and authentication will always be some of the main concerns when it comes to digital banking. EBA proposed the concept of Strong Customer Authentication (SCA),  which goes beyond two-factor authentication.


Services

Payment initiation for PISP customers

Account information for AISP customers

Fund confirmation for PISP customers


Documentation

As a member of Croatian Banking Association, which is a member of the Berlin Group, Istarska kreditna banka Umag d.d. applies as fundamental documentation related to PSD2 API the NextGenPSD2 documentation. CBA PSD2 documentation arises from the NextGenPSD2 API documentation and Istarska kreditna banka Umag d.d. documentation follows the standard of NextGenPSD2 and CBA PSD2.


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