the objectives of PSD2 are:
- Integrate payments across the European Union to build efficiency.
- Foster innovation by providing level playing field to non-banks with ‘access to bank account’ (XS2A). By extension, this brings all the non-bank players (Third Party Payment service providers, or TPP) under an updated and homogenous regulatory regime.
- Reduce the cost of transaction.
- Improve safety and security norms for transactions.
The directives segregate the payments market players in three broad categories:
- Account Servicing Payment Service Providers (ASPSP), or the banks where the customer account is maintained.
- Account Information Service Providers (AISPs) can be bank or non-bank players who can now access information from multiple accounts held with ASPSP.
- Payment Initiation Service Providers (PISPs) can link to the customer accounts held with ASPSPs and offer payment services.