PSD and PSD2

What is PSD?

The Payment Services Directive (PSD) sets legal rules for providing effective and non-discriminatory access to payment systems for all payment services users. Key objectives of the PSD are the harmonisation of payment services in order to achieve a single market in the European Economic Area (EEA), the increase in transparency and security for clients.

For any further question relating to this information, please do not hesitate to contact Client Services Department.

What is PDS2?

PSD2 is a European directive which aims to:

  • open up the banking market to new players known as payment service providers
  • increase the level of security of payment transactions and supervise the many players in the market of payment and account aggregation
  • encourage innovation in the sphere of payment accounts

With PSD2, clients of European banks have the opportunity to provide access to their bank information to authorised payment service providers. The Bank provides this access only upon the client’s request and subject to their express consent. Only data related to payment accounts that can be accessed online are concerned.

Three new types of services can be offered by these providers:

Account information service

These services allow account aggregators to have all the information of your payment accounts on a single interface (in particular balances, information on transactions, including amounts, names of beneficiaries and payers and communications, account details, etc.), held in your banks. To benefit from account aggregation services, you will always have to give your express consent to the provider and confirm that consent with the Bank.

Payment initiation services

FundBank’s client are able to initiate payments drawn from their Bank’s accounts by using the payment initiator’s platform. Here again, an authorisation will always be requested.

Information services on the availability of funds

Some providers can – with the client’s consent –

(i) check the availability of an amount on a bank account that was specified before making a transaction.

(i) The creation of a consent always takes place within the provider’s environment (on their website).  A consent is valid for 90 days and is coupled with a strong authentication with the Bank.

PSD2 and Third Party Providers API Portal:

Open Banking is the result of a regulation introduced by the European Banking Authority . It defines a platform to facilitate more competition and innovation. It will enable private and business clients to share their data securely with banks and third party providers, allowing them to compare products, initiate payments and request account information. The data is shared via Application Programming Interfaces.

Provision of the application programming interface (API) Within the framework of the legal requirements of European directive PSD2, FundBank (Europe) S.A. provides the technical documentation of the application programming interface (API) based on the Berlin Group standard, as well as a test environment accessible via the LuxHub platform, which acts as an intermediary between the Bank and third party providers (TPPs). To obtain all the information on the process, the technical details and the integration procedure, go to:
https://developer.luxhub.com/