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Navigating changes to payments regulations

Portrait of António Bernardo
Lisbon Office, Southern Europe
+351 21 3567-601

European banks face a monumental shakeup. The EU Payment Services Directive 2 (PSD2) will open up the payments market like never before. New competition will arise from non-banks, as well as from smaller, emerging banks. Technological innovations in the way payments are made have been substantial. Here, smartphones play an increasingly significant role in consumer behavior.

2018 will be a year of change for European banks with Payment Services Directive 2 coming into effect.
2018 will be a year of change for European banks with Payment Services Directive 2 coming into effect.

A central pillar of PSD2 focuses on empowering consumers by giving them control of their financial information. Banks will be compelled by third party payment service providers (TPP) to supply them with the relevant data, subject to clients' consent, as well as offering payment initiation services, disintermediating acquirer banks and card schemes from the payments equation.

"Banks will face stiffer, stronger competition, so they must ensure that their future strategy is resilient."
Portrait of António Bernardo
António Bernardo
Lisbon Office, Southern Europe

TPPs will also be able to use the information supplied by banks to set up portals that aggregate the customers' account information held by different banks, providing a 360º view on their account holdings and a better financial planning and management experience.

While PSD2 is being applauded by many non-banks and emerging banks, it also offers potential opportunities for large, incumbent European banks, who should respond to PSD2 by operating TPP services in their own right.

In our THINK ACT publication, we present three opportunity areas for both emerging players and incumbent market participants.


Successfully navigating changes to Payments Regulations


Payment Services Directive 2 - A strategic and technological challenge

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Portrait of Sebastian Steger
Berlin Office, Central Europe
+49 30 39927-3488
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