We’re not through with you PSD2

We’re not through with you PSD2

A group of fintech companies and associations are asking for changes to the second Payment Services Directive (PSD2) due to fears it will force them to become technologically dependent on banks.

The coalition of 60 European Union (EU) based entities have signed a seven-page manifesto seeking the European Commission (EC) to make changes to the current draft of the regulatory technical standards (RTS) under PSD2.

In the crew’s view, if the RTS which are currently proposed by the European Banking Authority (EBA) are adopted, they will have the “potential to negatively impact our companies’ business models, reversing what has been achieved by fintech companies over the last years in Europe”.

They add that such a scenario positions the banks as “gatekeepers of the fintech sector”.

The confederation is specifically concerned over communication between fintechs and banks on behalf of the consumer, which “will have a negative impact as opposed to what PSD2 originally intended”.

According to the gang, the EBA’s RTS “not only do not reflect the principles laid down in PSD2, but are distorting them by banning such a secure proven technology as direct access via the bank’s existing – and well maintained – customer-facing online banking interface”.

Therefore, the alliance wants policy makers to align the RTS with the PSD2 text, so that it no longer forecloses specific technologies, such as direct access, and “preserves technology neutrality and consumer choice in the payment space”.

The full manifesto can be found here.