How PSD2 Works In European Union

You recently received some communications regarding PSD2 , the new European directive that regulates all payment services in the European Union (EU), the European Economic Area (EEA) and the United Kingdom, and would you like to know more? Have you read something about the possibility of managing all your accounts through a single app but you are not sure how this thing is possible? Don’t worry: if you want, I’m here to give you the information you need.

In the following sections of this guide, in fact, you will find explained what PSD2 is and how it works with a focus on the new security measures provided for by the directive (with the measures that sellers must adopt in this regard) and on the Open Banking system, which is what allows you to manage multiple accounts – even from different institutions – from a single service. In this regard, I’ll then give you some practical tips on the apps you can use to keep track of all your accounts from a single, convenient interface.

How do you say? Is this just the kind of information you needed? Perfect, then take five minutes of free time and read the following. In this way you will be able to clear your ideas on the subject and understand all the basic concepts of PSD2. That said, there is nothing left for me to do but wish you a good read!

Index

  • What is PSD2
  • How to manage multiple accounts with EasyPol Banking

What is PSD2

PSD2 is the acronym for Payment Service Directive 2 and, as can be easily understood, it is an updated version of the first European directive on payments . It entered into force on January 13, 2018, but credit institutions had 20 months to adapt and implement the guidelines, which are officially in force since September 14, 2020.

Its purpose is to regulate all payment services in the European Union (EU), the European Economic Area (EEA) and the United Kingdom to make the European payments market more integrated and efficient , by promoting equal competition between payment service providers and the recognition of new players in the sector (primarily those that have emerged in recent years thanks to technological innovation), and to increase the security of payments made by consumers.

Going into more detail, PSD2 identifies new players in the financial services landscape, whose services can dialogue and interact directly with the current accounts of European citizens, based on the new concept of Open Banking (obviously only with the express consent of the latter and in full compliance with the rules of the GDPR on the processing of personal data). Among these new actors the following figures are identified.

  • AISP (Account Information Service Providers)– third-party services that allow the customer to aggregate the data of one or more banks and thus view information and movements from all their accounts from a single online app / service.
  • PISP (Payment Initiation Service Providers)– companies that arrange payments on behalf of the payer (without using credit cards, but only through applications and services that rely directly on the customer’s current account).
  • CISP (Card Issuers Service Providers)– companies that can check the availability of funds and issue debit cards supported by accounts of other institutions.

Regarding the security of payments, PSD2 introduces the SCA (Strong Customer Authentication) , according to which the buyer is obliged to verify his identity through a two-factor authentication mechanism : this means that in online payments, in addition to to enter the data of the card or those of the chosen payment service, an additional step must be carried out, which may consist in the use of a biometric recognition system (e.g. the fingerprint) or in the insertion of an OTP code (i.e. a disposable confirmation code) to be received via app or SMS (even if the latter method is considered less secure, as there is a risk of cloning SIMs, and is therefore not recommended).

This additional step is required for all transactions except those involving payments of less than 30 euros (with a maximum cumulative expense of 100 euros); low-risk transactions , therefore less than 500 euros made by buyers with a low level of fraud, and recurring payments to trusted beneficiaries (e.g. those for subscriptions, where SCA identification is requested only on the first payment).

If you are a retailer, you must adapt your systems to PSD2 and SCA by asking your payment system provider to activate CA Technologies’ 3-D Secure (3DS) technology , which can be used on all major payment circuits: it is the one that Visa calls Verified by Visa , Mastercard identifies as SecureCode, and American Express calls SafeKey .

How to manage multiple accounts with EasyPol Banking

Now that you are aware of the innovations introduced by PSD2, I bet you are looking for a solution to view the data of all your accounts and all your cards in an aggregate way from a single app, right? Then I really think you should check out EasyPol .

EasyPol is a famous solution with more than 500,000 installations, over 100,000 customers, and a 4.3 rating within the Google and Apple stores, supported by Cassa Depositi Prestiti, Cassa Risparmio Foundation and other major investors. It allows citizens and companies to make payments to over 23,000 local, regional and national authorities belonging to the pagoPA circuit , keeping the related receipts in an archive accessible from all devices. It allows you to pay taxes, car tax (with also the possibility of setting reminders and parking vehicles in a “Garage”, in order to view the status of the road tax and insurance of all vehicles), pagoPA notices, bulletins, MAV and RAV , both from computer and app, without mandatory registration and without having to use itSPID . There is also the possibility of creating Payment Groups in which to automatically upload your deadlines, or installments, in one go, such as home utilities, the installments of the Revenue Agency, university taxes, or INPS. . In addition, with this feature, you can set up convenient reminders to remind you when each payment is due.

Well, thanks to the collaboration with the Salt Edge platform , leader in Europe in the development of open banking solutions, now EasyPol also allows you to connect the bank accounts and cards of over 2,000 European banks (including all the main Italian banks) and view them balances and transactions from a single, convenient screen.

The new EasyPol allows you to connect all current accounts and cards (to consult the total balance and have a summary of income and expenses, complete with clear and easy to read graphs); categorize income and expenses by type and sender / recipient of the operation (to always have a clear picture of the movements made on their accounts); receive and make transfers to other EasyPol users; manage your subscriptions (with timely summaries of payment occurrences, withdrawal dates and changes in subscription amounts) and receive a personalized report on your financial situation via email.

EasyPol is available as an app for  Android  (also on  HUAWEI AppGallery ) and  iPhone / iPad  and is also accessible from the  webapp . Registration, as already mentioned, is not mandatory for payments to the Revenue Agency, ACI stamp, fines, TARI, TASI, INAIL, INPS, COSAP and other payments to local, regional and national authorities belonging to the pagoPA circuit. However, it is necessary for the connection of accounts and cards, to synchronize your data on multiple devices and to access functions such as those for setting reminders of future and recurring payments and having digital archiving of payments made. It can be done via email address , Google accountor Apple account .

To find out more and have the data of all your accounts and cards aggregated and always just a click away (or tap), access EasyPol from your favorite device, press the button to connect your account and follow the rapid on-screen instructions to put EasyPol in communication with your banking institution, safely and in full compliance with the European rules on the processing of personal data GDPR.

Afterwards, you will find balances and transactions of all accounts and cards connected directly in the app or on the EasyPol website. Convenient, right?

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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