EU approach to obdaiting regulation

The European Parliament has adopted an approach to regulating acquiring in the EU. The approach of the EU regulators can be summarised as follows:

  • ASPSP is an account service provider (banks);
  • AISP – provider of account information;
  • PISP – institutions providing payment initiation services.
  • AISP and PISP are together defined as TPP – Third Party Service Provider.

Access to the Bank APIs via PISP or AISP in the EU is limited to payment accounts available online.

Furthermore, it has become clear that the provision of AISP and PISP services to account holders should not depend on a contractual relationship between the TPP and the ASPSP.

This means that even where there is no contractual relationship between a bank and a particular AISP or PISP, the Bank will allow the provision of the service and access to the account by the AISP or PISP designated by the account holder.

In the EU, the new standard came into force on 14 September 2019

In summary, EU regulators understand the needs of their customers and are willing to provide tools to achieve harmonisation and competitiveness between the different providers of banking services.

The European Commission recognises that account information services provide the user of acquiring services with information on one or more payment accounts of one or more other payment service providers. The information is accessed via the online interfaces of the account service provider.

This enables the user of the payment system to obtain an overview of his financial situation at any time.

In addition, the European Commission has recognized the important role of payment initiation services, which enable the PISP to offer convenience to the payee and encourage him to release goods or services immediately.

The European Commission stressed that such services provide an accessible, secure and fast solution for both merchants and consumers, enabling consumers to shop online even if they do not have a specific type of payment card.

Therefore, the European Commission decided to include this type of services in the PSD2 in order to provide consumers with adequate protection of their payments and credentials as well as legal certainty regarding the AISP and PISP status.