Commission adopts Regulatory Technical Standards for Payment Services Directive

Further information:

The proposed rules allow consumers to use innovative services offered by third party providers - also known as FinTech companies - while maintaining rigorous data protection and security for EU consumers and businesses. These include payment solutions and tools for managing one's personal finances by aggregating information from various accounts.

The RTS were developed by the European Banking Authority in close cooperation with the European Central Bank. They spell out how strong customer authentication (SCA) is to be applied.

Background information:

A key aim of PSD2 is to increase the level of security and confidence of electronic payment. It also establishes a framework for new services linked to consumer payment accounts, such as the so-called payment initiation services and account information services. The rules specify the requirements for common and secure standards of communication between banks and FinTech companies.

Following the adoption of the Regulatory Technical Standards by the Commission, the European Parliament and the Council have three months to scrutinise them. Banks and other payment services providers then have 18 months to put the security measures and communication tools in place.

The European Commission adopted on 27 November 2017 the Regulatory Technical Standards (RTS) implementing the Payment Services Directive (PSD2).

• Primary Source

Deutsche Welle, 27.11.17: EU outlines plans to boost security for online payments http://p.dw.com/p/2oMLX

The Independent, 27.11.17: New EU rules increases competition and security between banks and fintech http://www.independent.co.uk/news/business/news/eu-banks-fintech-competition-security-european-union-commission-financial-technology-a8078716.html

European Commission: DG Communication: MEMO/17/4961, 27.11.17: Regulatory Technical Standards (RTS) enabling consumers to benefit from safer and more innovative electronic payments http://europa.eu/rapid/press-release_MEMO-17-4961_en.htm

EPRS: Briefing: PSD2/Regulatory Technical Standards (RTS) on Strong Customer Authentication and Secure Communication, and IFR/RTS on separation of payment card schemes and processing entities http://www.europeansources.info/record/psd2-regulatory-technical-standards-rts-on-strong-customer-authentication-and-secure-communication-and-ifr-rts-on-separation-of-payment-card-schemes-and-processing-entities/

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