2017 Feb 3rd Malta - NPF2017 - APIs in context of PSD2

Role & implications of APIs in context of PSD2

NPF 2017

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Single European Payments Area

• Important initiative to harmonise European Payment Landscape is PSD2

•Especially interesting, XS2A


Benefitting merchants

• Example – SMEs could save time on their online accountingMany SMEs use cloud-based platforms for bookkeeping but have to input their transaction data manually. APIs from their current account providers would make it easier to reconcile payments

• Again, interoperability issue: how to unlock data from >4000 banks, with own legacy, within EU?


PSD2 fragmentation riskNumerous examples of “standardization” emerging

W3C Web Payments Convenient Access to PSD2 Services (CAPS) Berlin Group Open Transaction Alliance (Innopay) DE: OBP (Open Bank Project): developed own open API

standard PRETA (supplier MyBank) Euro Banking Association (DCSI, Open Banking Forum)


Differing on 3 dimensions• Scope of ‘openness’

From PSD2 compliance only to enabling banks to reap the business opportunities of open business models;

• Scope of standardizationFrom pure technical & functional requirements to full set of operational and governance rules;

• Scope of collaboration (‘reach’)From individual bank driven efforts to combined bank & non-bank collaborations on national or regional level

Source: Innopay


EBA RTS confirms risk

“All banks have to develop own communication interface”

The problem with the RTS is that they are not really Technical and they don’t really provide Standards


Merchant concerns

•Lack of interoperability, not only in terms of payments systems & legal (eg VAT)

•Roadmap pressure !

•Up to merchants to decidehow much risk we accept !


UK – EU : 1 - 0

•Open Banking Standard (OBS) Working Group to address technical design and infrastructure issues – driven by Treasury and CMA

•Formalizing an approach to accreditation and governance

Big Q: Possible within European Patchwork?


EBA RTS, the day after

• Ideal: single message, interface standard & infrastructure with full pan-European reach for XS2A transaction services. Would maximise benefit for end-users (payees and payers) and ultimately provide for a positive ‘market ROI’ on PSD2 compliance investments.> Implicit PSD2 promise

• However, with current RTS draft, we are nowhere near such single standards. EBA encourages ‘the industry’ to develop compliant standards and/or technological solutions to complement the ‘principle-based’ RTS requirements. But what exactly is ‘the industry’? Who should take the lead in this? And when should such collaborative effort start, considering the foreseen enforcement date of the RTS (Oct. 2018 earliest)? Source: Innopay


ERPB role


Ambitious goal• Interface standardization

Data elements definition Message definitions & formats Choice communication layer ….

• Operational aspects Operational directory Message processing

• Business practices Dispute handling …

3-layered API solution ?

Thank you

2017 Feb 3rd Malta - NPF2017 - APIs in context of PSD2

Economy & Finance

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