New regulatory framework for payment services


The first Payment Services Directive was implemented in 2009. The purpose was to promote a well-functioning and common European market for payment services and make it easier to pay between countries within the EU and EEA. Through PSD1, it became possible for non-banks to offer payment services.

A new Payment Services Directive (PSD2) was implemented on 13 January 2018. In Norway PSD2 came into force 1 April 2019.

PSD2 will make the banking infrastructure even more accessible to third parties that want to provide payment-related services. Banks must, if the customer so wishes and agrees, give authorised third parties access to the customer’s account information and transaction history. These can be both competing banks and other institutions. These service providers will also be able to initiate payments on behalf of customers directly from the customer's account.

New roles in the payment value chain

PSD2 has introduced new roles in the payment value chain:

1. "Payment Initiation Service Provider" (PISP)
A business that is approved as a PISP can initiate payments from a bank account based on an agreement with the account holder without a prior agreement between the PISP and the account servicing payment service provider.

2. "Account Information Service Provider" (AISP)
A business that is  approved as an AISP can aggregate data on payment accounts in several banks without prior agreement between the AISP and the account servicing payment service provider. In this way an AISP can offer relevant management information to their customers.

In order to facilitate information exchange, banks must develop standardised interfaces (Application Programming Interfaces, APIs) that all approved players will be able to easily connect to in order to exchange information.

DNB has developed APIs for Norway and its branches in the EU, both for PSD2 and beyond. All APIs are available in DNB Developer portal.

Consequences for payments
PSD2 means stricter requirements when it comes to value dating.  Now banks must give same value for all incoming payments without exchange. The same applies to payments where there is an exchange between two EEA currencies.

Costs for an international payment are normally charged where they occur, meaning that sender and recipient is charged their respective costs. With PSD2 this option is mandatory for all payments between accounts within the EU/EEA.

Implementation in DNB
Third parties can access payment accounts with DNB in Sweden, Denmark, Finland, Germany and the UK.  The same access to accounts with DNB Norway will be made possible as soon as PSD2 is fully implemented in Norwegian law.

When it comes to value dating DNB is already PSD2 compliant. Shared charges only has been implemented for all payments between SEPA countries, and in Norway same day value has been implemented for nearly all incoming payments

Positive for corporate customers
PSD2 will create new opportunities for companies that operate within the EEA. The directive will lead to increased competition and innovation within payment services. New and more efficient payment solutions will be developed. Parallel to this, transaction and account information will be made more accessible, which will improve companies' liquidity and risk management.

For the largest corporate customers, PSD2 can help remove friction between banks and customers' systems. Banking services can be even more closely integrated with customers' own systems, giving them an even better overview of their overall financial position across all banks. For smaller companies that do not have comprehensive systems themselves, cost-effective services and solutions will be developed to aggregate and automate accounting and banking information. The companies will then be able to effectively handle and keep control of various bank connections throughout Europe in a way that was not previously possible due to too high costs.

Simpler and more standardised data exchange between banks and companies may result in significant efficiency gains for both parties. The reconciliation and compilation of banking and accounting data may be further automated, companies will gain access to more extensive information in real time, and it will be easier to compile important management information for decision makers.

DNB will, as a dominant player in this market, actively participate in these changes in order to facilitate new and better solutions going forward. DNB wants to build on the new infrastructure to be able to offer our corporate customers the best value-added services in the market. DNB has broad expertise within payment services and will be happy to discuss issues relating to PSD2 with our customers.