PSD2 took its time to be implemented across Europe, but now that the legislation has been adopted and transposed into most markets, it’s beginning to deliver on what it promised.
PSD2 aimed to lower high domestic market barriers to banks and trusted fintech partners, and its adoption has now created the conditions for Open Banking in Europe to really gain significant traction.
It’s becoming clear that after a slow, shuddering start, Open Banking is ushering in a wave of account information service providers (AISPs) and payment initiation service providers (PISPs) and new innovative services that appeal to consumers.
As the Digital & Card Payment Yearbooks show, 2019 saw the first tentative signs of activity, with several European central banks granting the first licences for these entities.
There were concerns that Europe’s consumers would be hesitant to embrace Open Banking over security and account access fears, but these have proven to be unfounded.
With only a few licences granted to AISPs and PISPs during 2019, hundreds have been granted over 2020 and 2021, showing that trusted third-party providers are making a positive impact by facilitating account overviews and transactions for many big banks.
For example, in 2019, 300,000 Open Banking payments had been processed in the UK. By 2020, over 3.2 million had been made. 2021’s figures could easily be three or four times as many, with growth rates replicated across several European markets.
As banks and FinTechs get to grips with Open Banking APIs in tandem with burgeoning demand for instant payments, it’s notable that leading European banks are opting for both integrating account information services across banks and immediate payment services into their online/mobile banking apps.
European banks can compete now with so-called neo banks and independent payment initiation service providers operating in Europe.
At the same time, some forward-thinking banks are acting as digital banking hubs cooperating with trusted third-party fintech partners on an individual level.
The big winners in this race for Open Banking services are consumers, who now have even more convenience and ease of access to banking services.
Services like personal financial management tools, digital identity and customer onboarding are finding favour with bank customers who want simple, seamless account and payment services with no barriers to usage.
The Digital & Card Payment Yearbooks give a market leading and comprehensive, up-to-date picture of Digital and Card payment services including digital and card issuing, acquiring and processing business within 43 countries plus pan European and Eurasian overviews and more…
The reports are recognised through the payments industry as the most authoritative source for the Digital and Card payments business on the European and Eurasian payment markets.
The report comprises of 2 volumes – Volume 1 covers payments statistics of the 33 European countries and Volume 2 contains the Eurasian payments statistics on 10 countries. The European Payment Cards Yearbook 2020-21 and the Eurasian Payment Cards Yearbook 2020–21 are available to purchase as complete volumes or as individual country profiles.
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