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Secure access to payment accounts for third parties

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On 27 November 2017, the European Commission submitted its proposal for a technical standard(opens in new window) under PSD2 to the European Parliament and the Council of the European Union for review. PSD2 is the revised Payment Services Directive in the European Union. In the coming years, it is intended to increase competition, innovation and security in European payments. Among other things, the technical standard published yesterday sets out how providers of new payment initiation and account information services can gain reliable and secure access to a payment account. This always requires the account holder’s explicit consent. Banks may also provide these new services themselves.

The proposed technical standard provides for dedicated interfaces, known as APIs or Application Programming Interfaces, between banks and new providers. These interfaces give third parties precisely the access to a payment account for which the account holder has given consent. If an interface does not function properly, a fallback mechanism allows the third party, under strict conditions, to access the payment account in the same way as the account holder.

The Dutch Payments Association is confident that Dutch banks can develop reliable and secure interfaces that give account holders the desired control over access to their payment accounts. It must always be clear what they have authorised a third party to do, and they must be able to withdraw that consent easily. In turn, these interfaces will allow third parties to develop innovative and secure new payment initiation and account information services for consumers and businesses.

The technical standard provides a sound basis for further cooperation between banks and fintech companies in developing these interfaces. It creates the conditions for achieving PSD2’s objectives: a level playing field that supports greater competition, innovation and security in the market for payment and account information services.

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