The API revolution - PSD2

What is PSD2?

PSD2 looks to offer consumers and businesses a simpler way to look after their money, whilst also addressing the growing trend for mobile and online payments. To give an example, if in the current electronic payment the consumer makes a purchase their data have to go through up to 4 different steps to validate the payment and then the purchase is closed, with the PSD2 it is all easier all these transactions giving authenticity to the consumer, in this way, the consumer and the seller are connected without media providers. For what it provides greater empowerment and freedom to the consumer.

What does PSD2 change?

The new rules look to offer consumers an easier and more flexible way to access their financial information, and more freedom concerning who they can share this information with. 

Thanks to the PSD2 the consumer can give permission to electronic commerce to authorize payments through his bank account. This will connect with the bank’s API and no secondary companies or other intermediaries will be needed for operations because they can be made directly between the merchant and the bank of the customer’s account.

 What goals does the PSD2 pursue?

  • Contribute to an efficient European payment market.
  • Reduce barriers to entry for payment service providers to ensure free competition.
  • High lever of consumer protection and security of payments.
  • Reduce the costs of payments for consumers.


Photo courtesy of La Huella artworks.
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