The aim of the PSD2 directive is to promote the development of an efficient, safe and competitive domestic retail payment system, strengthening payment service user protection, supporting innovation and increasing the level of electronic payment service security.
The PSD2 obliges Credit Institutes to share information and raise the level of transaction security. It is a crucial step towards encouraging innovation, reducing the circulation of cash and returning centrality to the customers, the only owners of their own data.
The measure has a number of objectives: to speed up innovation in the banking sector, to establish that the customers are the owners of their data (and not the banks), to discourage the use of cash (which is still far too common in Italy) and, as a direct consequence, to tackle tax evasion. The PSD2 directive obliges banks and credit institutes to share third party customer data and information (not necessarily bank users) through APIs, i.e. a linking element between information systems. APIs can also be used by third parties to access accounts and customer data and to carry out payment transactions on behalf of the owner, obviously on prior authorization, by proposing new innovative services that are more focused on the customer’s needs. PSD2 therefore offers a new principle regarding data ownership as it returns to the customer instead of being the bank’s.
With 40 years’ consolidated experience in the sector, CAD IT has always been considered as a company of reference in the development of the most efficient solutions aimed at meeting regulatory requirements that are ever more frequently impacting the operability of its Italian and European customers.