MyBank Solution Responds to Payment Services Directive
MyBank said that it plans for a solution to provide Access to the Account services, allowing banks and other financial institutions (FIs) to comply with the requirements of the new Payment Services Directive (PSD2).
The e-authorisation solution, which was launched in March 2013 and is owned and managed by EBA Clearing subsidiary Preta SAS, said that the interface will be made available to all buyer banks (account servicing payment service providers) at no charge, and will enable them to provide a secure, pan-European solution to their customers to make payments through third party payment service providers (TPPs).
The use of a ‘redirection protocol’ ensures that credentials are not disclosed to any third parties and that consumers can rely on the same user experience repeatedly, with no additional sign-up required.
MyBank also intends to make agreements with other mature and working solutions, in order to provide reach to merchants and consumers across Europe in a ‘hub and spoke’ model.
“We have seen with STEP2 how pan-European reach was created by clearing systems connecting to each other based on bilateral agreements, which allowed both pan-European and national services to co-exist, while increasing reach,” said John Broxis, Preta’s managing director. “We now aim to offer a similar model for the digital world as a competitive, market-driven solution for all TPPs operating in Europe.”
Vincent Brennan, deputy chairman, Euro Banking Association (EBA), and chair of the EBA working group on electronic alternative payments added: “MyBank offers an easy and very practical solution for Access to the Account. We welcome this industry-driven initiative, which we expect to meet the requirements of the PSD2 that are in the process of being defined by the European authorities.”
Separately, MyBank said that it has begun accepting registrations for its mandate service, which is scheduled to go live on 27 October. The registration period launched with a signing ceremony held in Helsinki, with Intesa Sanpaolo and UniCredit the first banks signing up for the solution
MyBank mandates will support the creation, modification and cancellation of single euro payments area (SEPA) core direct debits (SDDs) and will also support mandates by consumers waiving their automatic ‘no-questions-asked’ refund right.