PSD2 and Open Banking
What is Payment Services Directive (PSD2)?
It is the second version of the Payment Services Directive. It introduces increased security and competition within the financial industry.
What is Strong Customer Authentication (SCA)?
It is the part of PSD2 that focuses on security and provides changes to the way you verify your identity when spending on your card. To find out more visit: vanquis.co.uk/sca.
What is Open Banking?
Open Banking was introduced to bring more competition to the financial services industry by requiring financial institutions to open up customer and/or payment data to third party providers where customer consent is provided.
What is a Third Party Provider (TPP), Account Information Service Provider (AISP) and Payment Initiation Service Providers (PISPs)?
There are two types of Third Party Provider’s – Account Information Service Provider and Payment Initiation Service Provider.
- Account Information Service Provider (AISP) – Lets you see all of your account information from different bank accounts in one place online or in a mobile app. An AISP needs your explicit consent to provide you with these services.
- Payment Initiation Service Providers (PISPs) – Lets you pay companies directly from your bank account rather than using your debit or credit card through a third party such as Visa or MasterCard. A PISP needs your explicit consent before providing you with this service.