The recent technological innovations with emerging amount of new services for internet, card and mobile payment challenge the existing legal framework. Those developments are in most cases not falling under the entire scope of existing regulation. That gave a rise for a set of legal uncertainties, potential security risks and the lack of consumer protection.
Introducing Third Party Providers (TPP) that are permitted to perform payment services and have access to bank data Those TTP should be compliant to strict security regulations to protect customer financial data. Those regulation are described in details in Title 2–6 of PSD2. Payments in all currencies are now in the scope of PSD2, including the case when only one provider is located in EU.
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By providing an access to their customer data and payment services with APIs, they engage a wide set of new players (TPP) that will also participate in creation of new innovative services and deliver better customer experiences. Those intermediaries can be either banks themselves or FinTech companies, startups, retailers, utility providers, etc.
TPP from now on can have an access to multiple bank customer information by delivering better payment services and experience through innovation.
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