PSD2 – Payment Service Directive 2, is believed to bring better cooperation between banks and Fintech. It also brings hope of re-gaining the trust on financial institutions. Especially, the trust that was fading out after 2008. Specifically in Europe, people were losing their faith in financial institution. Although, high hopes are riding on PSD2.
What is it? PSD2 is a fundamental piece of payments-related legislation in Europe, which entered into force in January 2016. Also, it is a requirement for strong customer authentication on majority of electronic payment system within European Economic Area (EEA).
Therefore, card payments have to be PSD2 incorporated. More importantly, you’re transactions are now independent from the tricks of bank. Mainly because, a third party will be managing your electronic payments. Hence, it provides more secured transactions for the buyers and merchants. More importantly, this is also an opportunity for banks to win back the trust of the Fintech’s.
How will PSD2 help in gaining trust?
Because it provides a safer mode of transaction! Also, this new regulation restricts banks from taking unnecessary advantage. Since, banks can only do so only when they are operating alone. But a third party involvement is required. Hence, it provides an equal opportunity for all.
Also, blaming banks may not always be the right stand. Many of the conflicts may arise due to lack of communication. Therefore, having a third party involvement is helpful in such cases.
Therefore, PSD2 not only provides you a safer mechanism, it also helps in better communication. Meaning, a faster payment processing facility. Hence, you can now worry less about payment processing and focus on the business.
Benefits of PSD2 in general
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.
If you are a high-risk merchant settled in Europe, it is the ultimate blessing. Hence, it is the opportunity you were looking for to grow your business even bigger. Since no specific bank or payment system will be dominating the payment market, border barriers are no longer a constraint. So, you can expand your business beyond border and grow.
Speculations will prevail. But your business will offer opportunities that are hidden in form of risks!
How can we help?
PurePay offers services for wide range of high-risk industries. For high risk merchant who are availing services of PurePay, life will become super easy. PSD2 is mandatory and will soon become integral part of your life.
So, it will make your payments faster, easier, safer with wider option and PurePay will make your business easier through high risk merchant account. Come onboard with PurePay, who knows how much the future of PSD2 will drive us forward.