Having Payment Service Directive (PSD2) is now mandatory. Still don’t have it? If no, there is some bad news for you!
From the running month, you won’t be able make any payments via your card if you do not have PSD2. It is as per the revised Payment Service Directive by the European Union (EU). Hence, having this method incorporated in your bank card is obligatory.
What is PSD2?
It is a fundamental piece of payments-related legislation in Europe, which entered into force in January 2016.
Retail banking has been a game-changing year since 2018. With PSD2 in effect, banks’ dominance on their customer’s account information and payment services will disappear.
Thus, PSD2 is a requirement for strong customer authentication. It is applicable on majority of electronic payment system within European Economic Area (EEA).
Is it helpful?
This method helps customers and businesses to let a third party manage their finances in a bank account. And also, it is mandatory for banks to incorporate the system. Thus, making electronic payment engaging a financial/non-financial body got easier.
Also, the directive is documented with a perception of payment system being fragmented between national borders. Thus, PSD2 would help break boundaries in terms of making payments across borders within Europe. Hence, this is another step by the EU to unite the countries in Europe and ensure better business connectivity.
Benefits of PSD2
The benefits of this new obligation are very wide. The following are the most prominent ones:
- Contribute to a more integrated and efficient European payments market.
- Improve the level playing field for payment service providers.
- Uniformity across EU.
- Make payments safer and more secure.
- Faster payments.
- Protect consumers.
- Wider choice of payments systems.
Hence, the benefits clearly reflect how PSD2 will make your business more financially independent. So, your bank will have lesser power to drive your financials, regarding payment systems.
Starting off with PSD2
Therefore, with obligations being in action from this month, this will become an integral part of your life. So, PSD2 will make your payments faster, easier, safer with wider option and PurePay will make your business easier through high risk merchant account.
So, doing business across borders is getting easier. It starting with unifying borders in Europe, but sooner or later, PSD2 will become most vital part of global payment system.