PSD2
PSD2 is the second Payment Services Directive, designed by the countries of the European Union of the European Parliament on payment services in the internal market.
The directive aims to regulate payment services and payment service providers throughout the European Union (EU) and European Economic Area (EEA). The directive's purpose is to increase competition, innovation and security in the European payment industry.
What PSD2 does?​
Increases the security of payments in electronic banking by
Introduces two-step verification through at least two elements from the following categories:
knowledge: information only known to you, e.g., password, PIN.
ownership: something that only you have access to, e.g., telephone, token, payment card or your own features, e.g., biometric data.
Introduction of payment services as part of open banking.
Refer to the official text of Directive (EU) 2015/2366, also known as the Payment Services Directive (PSD2), which regulates payment services and payment service providers within the European Union and European Economic Area.
PSD2 is for banks, not for merchants. This means that to comply with the law in their home country, issuing banks must refuse non-compliant transactions. To avoid the risk of issuing banks refusing your transactions, you as a merchant need to ensure that your transactions comply with PSD2 SCA regulations.
Benefits​
Thanks to PSD2, you get:
- access to all payment accounts (kept in various banks) in one place.
- immediate verification of the current financial situation.
- secure transaction confirmation.
- automated processes, e.g., credit verification process.
- access to open banking and consent management for external service providers.
The PSD2 API​
The PSD2 API is a standardized set of application programming interfaces that enables secure and regulated access to payment services and customers' banking information.
It is part of the European Union's PSD2 regulation, which aims to enhance competition, innovation, and security in the financial industry.
It is a REST API that allows 3rd-party providers to access payment accounts.
Accounts API​
It provides account information services as an online service to provide consolidated information on one or more payment accounts held by a payment service user with one or more payment service provider(s). Gain access to transaction reports, balances and account details for specific accounts or card accounts. You can retrieve a list of available accounts, view balances and access detailed account information, all within the scope of the granted consent.
You can access transaction reports, check the balances of accounts, obtain a list of available accounts and retrieve account details.
You can generate transaction reports for a specific account, allowing you to easily track and analyze transactions. You can also retrieve the balances of a given account, providing real-time information on the available funds.
Payments API​
The Payment API facilitates various financial transactions and services. It enables the initiation and update of payment requests, providing a mechanism for users to manage their payment operations efficiently.
Additionally, the API offers status information on payments, allowing users to track the progress and confirmation of their transactions. This service is crucial for creating a seamless payment experience, ensuring that users can conduct financial transactions securely and with ease. The API's design reflects the broader objectives of PSD2 to enhance the security and integration of payment services across the European Union.
Funds API​
The Funds API provides a mechanism for users to access information on the availability of funds in their accounts. This service is essential for managing financial transactions effectively, ensuring that users have real-time information on their account balances.