Factbox: EU rules aim to increase choice in customer payments
11 Jan 2018

New European Union rules from January 13 aim to prise open banking to more competition by allowing outside firms to make payments and offer other financial services by directly accessing a customer’s account.

The Payments Services Directive 2, or PSD2, is a major reworking of the bloc’s payments rules to reflect rapid advances in technology like smart phones for accessing financial services.

The main elements are:

• With a customer’s permission, a bank must allow an outside company authorized by regulators to take a payment
directly from an account for goods and services.
• A bank must allow an outside firm to access transactions history from a customer’s account for the purposes of
aggregating information from several current and savings accounts into a single “dashboard”.
• Tougher customer authentication of online payments will be introduced

– By by Huw Jones, Reuters.11 January 2018.

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