Spurring Online Payments

In September 2019, Europe’s financial markets will undergo a revolution.

From that date, the Payment Services Directive (PSD2) will require banks to provide API software interfaces, allowing financial upstarts to tap customer data. This new access to bank data is designed to jumpstart fintech innovation, encouraging the creation of a myriad of innovative, secure consumer-friendly services.

CEPS is publishing its six-month research project on PSD2. In the paper, we judge whether the reform will make online payments even easier, safer and cheaper. Our conclusions are mixed. For fin-tech entrepreneurs, the upcoming changes may not offer enough access to bank data to innovate. Banks question the manner in which they must share customer data and analysts predict that they could lose at least 9% of all retail payments by 2020. Instead of “one-click-shopping,” consumers will need to use time-consuming card readers.

Come to a presentation of the new paper and participate in a discussion about the issue.

At stake is Europe’s place in the future world of digital payments. China is racing ahead, leapfrogging credit cards and installing next-generation Internet payment services such as Tencent’s WeChat and Alibaba’s Alipay. The US, is counting on its low regulatory requirements to generate innovation.

CEPS acknowledges Intuit’s support for this research in providing funding. The study was conducted in complete independence. It is based on personal interviews with regulators, consumer advocates, fintech leaders, and bank officials. The author takes full responsibility for its findings.

A sandwich lunch will be served from 12:30-13:00 - Meeting from 13:00 to 14:30

Event Commissioned by Intuit