Global Banks Partner to Form Blockchain Payments Network
Ripple joins with Bank of America, Santander, the Royal Bank of Canada and more to build a #global #blockchain steering group.
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Swiss Finance Infrastructure Firm Testing Blockchain with Digital Asset
A major financial #infrastructure provider in Switzerland is developing a proof-of-concept focused on securities market infrastructure.
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EU’s Payment Services Directive (PSD2): What It Is And Why It Matters
Recent regulatory changes in Europe, including the #Payment #Services #Directive (#PSD2), are set to accelerate payments innovation.
The Payment Services Directive (PSD) was initially adopted by the European Union (EU) in 2007 and aimed at providing a legal framework for all payments made in the region with the purpose of making these faster, more efficient and easier to use for European consumers and payments services providers.
In October 2015, the EU adopted a revised PSD – also referred to as PSD2 &8211; that sought to enhance consumer protection, promote innovation and improve the security of payments services.
PSD2: What is it?
PSD2 is a major policy development expected to impact the payments industry across Europe through: further standardization and interoperability of cards, Internet and mobile payments methods; the reduction of barriers to entry in particular for card and Internet payments providers, driving thus increased competition, innovation and transparency across the European payments market; as well as providing the necessary legal platform for the Single Euro Payments Area (SEPA).
The directive seeks to improve the existing EU rules for electronic payments, while taking into account emerging innovative payment services, such as Internet and mobile payments. It sets out rules concerning:
- Strict security requirements for electronic payments and the protection of consumers’ financial data, guaranteeing safe authentication and reducing the risk of fraud;
- The transparency of conditions and information requirements for payment services;
- The rights and obligations of users and providers of payment services.
The regulation came into effect on January 12, 2016, and EU countries must incorporate it into national law by January 13, 2018.
The impacts
The new directive brings key changes that include:
Third-party payment initiation: Payment Initiation Service Providers (PISP) will be able to initiate online payments from the payer&8217;s bank account. This will encourage competition in the European payments industry. Accenture estimates PISP services could account for up to 16% of online retail payments by 2020.
The definition of a “payment institution” is extended to new types and categories of players. While the original PSD applied only to transactions occurring within the EU, the PSD2 will extend this scope to &8220;one leg out&8221; transactions.
Third-party account access: The directive will regulate account information service providers (AISPs). These providers act as aggregators of customer payment account information.
Prohibition of card surcharges: The regulation seeks to standardize the different approaches to surcharges on card-based transactions across the EU.
Security of online payments and account access through the introduction of new security requirements for electronic payments and account access, along with new security challenges relating to AISPs and PISPs.
The directive will affect everyone in the shifting payment landscape. This includes #banks, fintechs, the PCI (Payment Card Industry) as well as merchants.
How PISPs and AISPs will change existing interaction models between customers and banks, Accenture report ‘Seizing the Opportunities Unlocked by the EU’s Revised Payment Services Directive&8217;
PSD2 will bring both challenges and opportunities for European banks. Banks will be required to open up their infrastructure to third parties by offering APIs under the XS2A (access to account) rule. They will be forced to grant them access to their customers&8217; online account/payment services in a regulated and secure way.
On the other hand, PSD2 presents significant opportunities to grow new revenue streams &8211; by facilitating and monetizing access to raw data and banking services, for instance &8211;, capture customer ownership and process toward an extended ecosystem centered on the &8220;Everyday Bank,&8221; a concept that takes banking to being trusted, indispensable and central to consumers&8217; everyday activities.
EU banks: challenges and opportunities of PSD2, Accenture report &8216;Seizing the Opportunities Unlocked by the EU’s Revised Payment Services Directive&8217;
Featured image: Mobile banking concept by Ditty_about_summer, via Shutterstock.com.
The post EU&8217;s Payment Services Directive (PSD2): What It Is And Why It Matters appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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World’s Largest Mining Company to Use Blockchain for Supply Chain
The world’s #largest #mining firm as ranked by PwC intends to begin using the ethereum #blockchain to improve its #supply #chain processes.
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World’s Largest Mining Company to Use Blockchain for Supply Chain
The world’s #largest #mining firm as ranked by PwC intends to begin using the ethereum #blockchain to improve its #supply #chain processes.
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Australia more “fintech-ready” than some European peers – TransferWise
Often touted as a niche industry, this author is seeing early signs that mass-acceptance of #fintech providers by consumers and businesses is creeping closer to a tipping point, of sorts. The call may be slightly premature, however the following recent announcements by various industry players all point towards a growingRead More
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IBM, China UnionPay Develop Blockchain Loyalty Points Exchange
International Business Machines is working with a Chinese credit card company to to create a #blockchain-based system for trading #loyalty #points.
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China’s Financial Firms Urge Regulators to Help Mature Blockchain
#China’s major #financial institutions believe governance should not be replaced in any larger transitions to #blockchain.
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Blockchain to Drive Wanxiang’s $30 Billion Smart Cities Initiative
Auto giant Wanxiang announced today that it will be using #blockchain as part of its newly announced #smart #cities program.
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Distributed Ledger Technology For Swiss Financial Market From SIX Securities Services & Digital Asset
SIX Securities Services, the post-trade infrastructure operator for the #Swiss #financial sector, and Digital Asset Holdings, a developer of #distributed #ledger #technology for the financial #services industry, announced plans to develop a proof of concept that will demonstrate the commercial viability of distributed ledger technology across the Swiss financial #market, with an initial prototype for . The two firms will also develop a roadmap for future opportunities spanning the whole market infrastructure value chain.
SIX #Securities Services recognizes the potential of distributed ledger technology and after a competitive evaluation process has selected #Digital #Asset as the business and technology partner for the design of a solution for the Swiss market. The initial phase of the project will demonstrate the ability to build and incorporate distributed, encrypted, straight through processing tools into existing securities transaction flows, and propose a roadmap for extending this to a production-ready service.
The proof of concept will extend beyond the scope of the prototype, and Digital Asset will develop a product roadmap for future opportunities to include a wide range of applications that demonstrate how current, segregated processes could be streamlined and made more efficient for SIX Securities Services and post-trade ecosystem as a whole.
SIX Securities Services has already made significant strides in exploring distributed ledger technologies and currently has a prototype for Corporate Actions processing on display at Sibos, in Geneva #from 26-29 September, 2016.
According to Thomas Zeeb, Division CEO SIX Securities Services: «Distributed ledger technology and its potential role in post trading is key to our business. We need to understand it, and more importantly, its applicability and future flexibility in order to keep ahead of the game. Partnering with Digital Asset is a way to accelerate our own development plans and leverage their experience in this area.»
«Partnering with SIX brings this cutting edge technology another step closer to commercial reality,” said Blythe Masters, CEO of Digital Asset. “We believe this collaboration will provide exciting opportunities for SIX and its customers while reducing inefficiency, cost and risk in the financial services ecosystem.»
The post Distributed Ledger Technology For Swiss Financial Market From SIX Securities Services &038; Digital Asset appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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