PSDII - ACAMSfiles.acams.org/pdfs/2015/CENTL10132015-presentation1.pdflandscape evolve and how will...
Transcript of PSDII - ACAMSfiles.acams.org/pdfs/2015/CENTL10132015-presentation1.pdflandscape evolve and how will...
PSDIIaPSP’sperspec+ve
ACAMSsessionGastonAussems13oktober2015
Short introduction to Mollie
v (Collecting) Payment Service Provider
v Full set of payment methods
v Technology driven and service oriented
v European Payment Institution, PCI DSS level 1 certified
v Serving around 17.000 merchants in 15 countries
v Established since 2004, based in Amsterdam (NL)
Mollie
Mollie’s view on the PSD2
v Impact of PSD2 will be amplified by other legislation and develop-ments such as instant payments (national solutions!) and eID
v Disruptive impact dependents on Regulatory Technical Standards (RTS) which are still to be worked out – complex!v RTS will be high level
v First signs of European divergence
v Seemingly strong focus on reducing power of (card) payment schemes and transforming card to giro paymentsv Directive will take on elements of payment scheme
v Who will be the scheme manager?
Mollie
Which scenario will unfold and what will be the main drivers?
Mollie
Transac'onservicesOnlypaymentdata
SingleinterfaceacrossbanksLowcosts
ManynewentrantswithpaymentrelatedfuncFonality
Ba.leforthecustomerDataonallassetsandliabiliFesavailableSingleinterfaceacrossbanksandotherFI’s
LowcostsManynewentrantswithfocusondata
aggregaFonandtransacFonfuncFonaliFes
StatusquoOnlypaymentdata
ManyinterfacesrequiredHighcosts
NewentrantstosolvefragmentaFonandotherstoofferpaymentfuncFonaliFes
Hopeforbe.er'mesDataonallassetsandliabiliFes
ManyinterfacesrequiredHighcosts
NewentrantstosolvefragmentaFonandotherstooffernewfuncFonaliFes
Minimalcompliance(slowadopFonandminimalcompliance)
BankOS(fastadopFonaimedat
fullyopeningupthebank)
Uniformity(strictstandardizaFonaround
funcFonality,informaFonexchangeandsecurityacrossbanks)
FragmentaFon(everybank/countryhasit’sown
interpretaFonofstandards,it’sownimplementaFonandrequires
separateTPPcontracts)
Implem
enta'o
nofth
eRe
gulatoryTechn
ical
Stan
dardsb
ycoun
tries/market
Adop'onby(majorityof)bankingsector
Impacts and opportunities
v Relatively easy to set up own payment scheme, especially in combination PIS - instant payment – AIS
v Efficient value added services related to eID, reconciliation, automated cash management
v Lower costs due to:v Fewer integrations with banks in Europe
v Less transactions via expensive card networks
v Higher costs due to:v More fraud
v Measures against AML/CFT
Mollie
Existing players will startoffering services in line with XS2A
Mollie
Source:Innopay
v How will the competitive landscape evolve and how will banks respond?
v Should PSPs look beyond payments (eID, account information)?
v What are new revenue sources of the future?
v Should PSPs offer consumer side services?
v Will merchants integrate directly with banks?
PSD2: Payment schemewithout scheme manager?
A payment scheme (e.g. iDEAL, MasterCard) defines:
v Customer authentication
v Payment authorization & processing
v Exchange standards
But also:
v Branding
v Audits and certification
v Fraud prevention
v Dispute resolution
Mollie
Addressed by the PSD2 or to be further specified in Regulatory Technical Standards by EBA
What is the impact on trust of customers in online payments if not addressed properly?
Current payment schemes safeguard integrity of transaction flow
Mollie
Acquirer
PSP
Merchant
RulesandcerFficaFon
Acceptancecriteria
Issuer
Card-holder
Coveredbylawandschemerules
v Acquirer, issuer and PSP are regulated both by law and scheme rules
v Scheme rules prevent multiple PSP’s providing services to each other
v UBO must be known in every step of the transaction
v Measures against AML, CFT and merchant transaction laundering
v Active monitoring on merchant activities that damage trust of consumers and merchants in payments
v Fees are charged to cover for risk and brand and reputation management
PSP
How will PSD2 deal withthese challenges?
Mollie
Bankmerchant
Merchant
Bankconsumer
Account-holder
PIS/AIS
PIS
PIS
AIS
v Who initiated the transaction?
v In case of fraud, who is liable?
v Who is responsible for accepting the merchant?
v Will the UBO always be known?
v How will the customer recognize a reputable payment service?
v Who will resolve disputes?
v Who charges what to whom and for what?
Questions
Explain
Who
What
When
How
Why
Where
Why
Who
Explain
Where
How
What
When
Mollie