PSD2Antoine Larmanjat

Brussels May 2017

Winners and Losers of PSD2

2

PSPs

PISPs

AISPs

Retailers

Card schemes

Clearing Houses

Banks

Fintechs

Ca

rd I

ss

ue

rsCard Issuing PSPs

Consumers

AISPs

3

• New Business models

• 90 days SCA validity is a problem

• AISPs + PISPs = more opportunities

• Great for AISPs and Robo-advisors, BUT limitation to

Payments accounts only

PISPs

3

• Online Bank Transfer Payments on the rise

• SCA+Dynamic Linking does not lead to the best User Experience (redirect

model)

• PISP-only On-site scenarios hard to envisage

• Clearing houses bank backed may create national API PSD2 gateways with

richer services than strict PSD2 requirements

• Hard to create a Mobile-Payment offering with a PISP-only license, easier with

cards

Card Schemes and Card Issuing PSPs

3

• Bank transfers vs Card Payments will shift more towards Bank Transfers

• PSD2 theoretically opens the door to card issuing PSPs which are not the bank

• New cheaper card schemes ? Possible with Yes/No PSD2 clause.

• There are too many unknowns on how to onboard a new card at the bank when

it is issued by a 3rd party, PSD2 and RTS remain too vague there

• Article 16 (Transaction-Risk Analysis) of EBA/RTS is very restrictive and

thresholds are quite low. Will also be difficult to implement.

• Current onsite and mobile card based payments are not heavily impacted by

PSD2.

Retailers

3

• PSD2 should mean lower Payments costs for Retailers

• Retailers can become PISPs for online payments

• Retailers can create their own closed loop card scheme with

PSD2

• Retailers can use API gateways that will give them access to

accounts

• Retailers can bundle their own payment systems to their own

services (loyalty, etc..)

Banks

3

• PSD2 will trigger OpenBanking strategy for Banks

• Banks may want to be part of the API economy

• Bank API gateways will allow partners to innovate faster than Banks can

• A good API infrastructure might help bank increase their share of wallet for

Corporate clients

• Access to Bank services through APIs by Fintechs => Bank

Disintermediation

• Banking services without a channel leads to less Cross Selling

opportunities

Others

3

• We see many PSD2 initiatives among banks and similar

institutions, but mainly at national level. There is a risk of having

multiple unconnected API gateways at national level.

• Instant Payments and PSD2 Access to accounts is still unclear as

for how they will interact and connect

• Contactless IP rights with existing card schemes hamper the

creation of new mobile payments and card schemes. EMV Co

contact rights should be extended to contactless to generate more

competition

• Status of Screen scraping still unclear

PayconiqEuropean PISP ahead of PSD2

May 2017

PSD2 opens up initiation of bank payments to non-banks

• Banks to provide access to internet-accessible accounts to any licensed Third Party Provider (TPPs) for

account information and payment initiation services

• Banks CANNOT charge TPPs for these services and NO contract is required

Customers

TPPsInternet / Mobile banking

Payment account

Customers

Internet / Mobile banking

Payment account

PSD 2

Bank domain Bank domain

Impact on Primary

relationshipsTODAY > OCT 2018

Impact on Transaction

revenues & data

How can Payconiq as a TPP work with banks ahead of PSD2?

11

Bank A Bank B

Focus on SEPA Credit Transfers

(SCT)

SEPA

Advantage for consumers,

merchants and banks:

• PSD2 proof

• Bank owned

• Embraces the API economy

• Omni-channel payments

solution

• Interoperable / Multi-country

• White label API and own App

• Reduces reliance on cards

• Loyalty integration

• Value added Service

• Innovation platform

Payconiq is the answer to:

1. Changing payment

regulations (PSD2)

2. Technological

developments (APIs)

3. Changing customer needs

(mobile)

Payconiq, “the story so far”

October 2014

April 2015

July

September

November

February 2016

May

September

October

November

December

January 2017

January

• PSD2 based

fintech startup

within ING

• MVP in

Leuven

• 50 stores

onboarded in

Leuven

• PQ as preferred

method in

student

societies

• Delivered a

pizza in 10

seconds

• Loyalty

integration

with Joyn

• Merchants,

ING

Belgium

starts selling

Payconiq

• #1 iOS in

financial apps

and release of

the new logo

• Merchants

KBC join

Payconiq

• First above

the line

commercial

s

• Belfius

joins

Payconiq

• Significant

Merchants &

Users

• New

office

April 2017

• Rabobank,

• ABNAmro

• SNS Bank