Banks and third party providers agree on joint efforts regarding the transition to new payment rules

The European Banking Federation (EBF), the European Association of Co-operative Banks (EACB) and the European Savings and Retail Banking Group (ESBG), known collectively as the European Credit Sector Associations (ECSAs), on the one side and the European Third Party Providers Association (ETPPA) and the Financial Data and Technology Association (FDATA) on the other side, have formulated a Joint Statement to smoothen the transition to the new security and communication standards that will be applicable from 14 September 2019 within the framework of the revised payments services directive (PSD2).

The statement covers a series of communication and information related commitments to improve the interactions between banks and Third Party Providers (TPPs) regarding the implementation of the new standards.

The parties to the statement reasserted their full commitment to the objectives of PSD2 which will create a more secure, innovative and competitive payments landscape with stronger consumer protection. The successful implementation of the PSD2 framework aims to create a vibrant market for payments in the European Union opening up new opportunities for all the players involved.

Representatives of the banking sector stressed that with this statement the banking industry is sending a strong signal about its willingness to make PSD2 a success. According to them, the objective of this initiative is to put forward joint solutions to facilitate as much as possible the implementation of PSD2. TPP representatives highlighted the need to ensure full business continuity of TPP-provided services to the benefit of European consumers, merchants and corporates.

Both parties also call on the National Competent Authorities to use the possibilities given to them within the law to the maximum extent possible to help avoid unintended customer detriment.

The statement resulted from a continued dialogue between representatives of the two third party providers associations and the three ECSAs overseen by the relevant EU authorities including DG FISMA and DG COMP of the European Commission as well as the European Banking Authority. The parties to the statement will monitor the progress made on a best effort basis until the 14 September 2019.

Ralf Ohlhausen, Executive Advisor at PPRO, Vice-Chairman of ETPPA, and member of the Task Force agreeing this statement, commented: I am really glad we managed to strengthen the dialogue between ourselves and the banks and were able to agree some very important points. In particular, the joint understanding that the regulators in each country are now playing the key role and that altogether we must ensure that contingency measures are in place to avoid any customer detriments come 14th September.”

“Today’s Joint Statement is not only important because of the number of result-oriented and pragmatic mutual commitments that it contains, but also because of the collaborative process that led to it,” declared Valdis Dombrovskis, Vice-President for Financial Stability, Financial Services and Capital Markets Union declared. He added: “Banks and TPPs are complementary and should work hand-in-hand to ensure business continuity in payments. I invite parties to respect fully their commitments. I am convinced that the innovative and competitive EU payments market fostered by the PSD2 is a great opportunity for all, be they consumers, small or large merchants, TPPs or banks.”