European Payment Services Directive: regulatory updates in real-time
As also happens for some regulatory areas and specific rules, even the European Directive concerning electronic payment services is summarized by an acronym: PSD. These three letters in fact identify the Payment Services Directive, that is the Directive 2007/64/EC, issued by the European Commission in 2007 and implemented in the Italian national law with the Legislative Decree no.11 of 27 January 2010, later entered in force in March of the same year.
As also reported on the website of the Italian Banking Association, this document was the first to outline a “modern and coherent EU legal framework for electronic payment services”. The ABI also summarizes the objectives of the PSD:
- regulate access to the market to encourage competition in the provision of services;
- guarantee greater protection of users and greater transparency;
- standardize the rights and obligations in the provision and use of payment services to lay the legal bases for the creation of the Single Euro Payment Area (SEPA);
- stimulate the use of electronic and innovative payment tools to reduce the costs of inefficient tools such as paper and cash.
Obviously, the issue of electronic payments and, in general, of the growing digitalization of all fields of society made it necessary to issue a regulatory update on the subject, namely Directive (EU) 2015/2366, more commonly known as PSD2.
The second directive on payment services entered into force in the European Union on 13 January 2016, with a deadline for transposition in the following two years for the member states. Regulatory analysis on electronic payments is a complex activity, also due to the continuous evolutions of technology and the need for all financial institutions to align themselves with the authorities’ requirements in order to provide their services.
But even the PSD2 can finally be analyzed faster and more accurately. This innovative RegTech solution, in fact, exploits Artificial Intelligence to offer automatic and real-time regulatory updates on any financial regulatory area, therefore also on electronic payment services.
PSD2: regulatory references, objectives and banking authorities involved
Therefore, the European Union Directive 2015/2366 is part of the interventions aimed at modernizing the European retail payments legislative framework, therefore at developing secure, efficient, competitive and innovative electronic payment systems for consumers, businesses and merchants.
As reported by the European Commission itself, “empowers the Commission to adopt delegated and implementing acts to specify how competent authorities and market participants shall comply with the obligations laid down in the directive”. This regulation entered into force on 12 January 2016 and has been applied in the EU since 13 January 2018, but the European Union subsequently issued two other documents to supplement the PSD2, namely the Implementing Regulation (EU) 2019/410, which establishes implementing technical standards regarding the details and structure of information on payment services, and the Delegated Regulation (EU) 2019/411, which supplements Directive (EU) 2015/2366 of the European Parliament and of the Council regarding regulatory technical standards that define the technical requirements relating to the development, management and maintenance of the central electronic register in the payment services sector and access to the information contained therein.
In particular, these regulatory updates related to payment services have introduced new security procedures for online account access and electronic payments by banks and by new market operators, especially with respect to the e-Commerce and online shopping sectors. In Italy, the PSD2 was implemented with Legislative Decree no. 218 of 15 December 2017, which then entered into force on 13 January 2018.
The main banking authority involved in the PSD2 enforcement, in addition to the European Commission, is the European Banking Authority, which contributes to the work of the EC by offering indications and technical standards, as well as publishing guidelines and recommendations to be followed in the field of electronic payments.
In addition to the EC and the EBA, within the European Union there are also groups of experts and committees to support the banking authorities with respect to PSD2, such as the Expert Group on Banking, Payments and Insurance (EGBPI), the Payment Systems Market Expert Group (PSMEG), and the Payments Committee (source: European Commission).
Aptus.AI offers quick and accurate information to optimize compliance
The electronic payment services issue has therefore been crucial for financial compliance professionals in recent years. While analyzing the PSD2 and the other regulations related to digital payments, the possibility to get fast and accurate information is essential, in order to make confident decisions in a reasonable time. Currently this possibility is not supported by adequate technological tools, but Aptus.AI’s AI assistant is designed to revolutionize this situation.
Aptus.AI’s AI assistant’s features
Aptus.AI’s AI assistant is designed to revolutionize the work of compliance, legal, and consulting professionals, offering fast, precise, and customizable support in regulatory analysis.
Exploiting advanced Artificial Intelligence technologies, Aptus.AI’s AI assistant can transform the management of compliance and legal activities into a true competitive advantage, saving time and improving decision quality.
Here are the main features of the Aptus.AI’s AI assistant:
- Regulatory monitoring and real-time alerts: Automatic notifications on regulatory updates of interest, including Italian, European, and international authorities.
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- Automated generation of legal documents: Automated drafting of policy drafts, deeds, legal opinions, and recurring documents thanks to generative AI powered by always up-to-date databases.
- Risk analysis: Automatic identification by AI of risks arising from regulatory changes, allowing you to dedicate more time to strategic activities.
- Shared workspaces: Areas where you can easily collaborate with your team, sharing information and regulatory analyses in dedicated and secure environments.
With Aptus.AI’s IA assistant, compliance and legal consulting enter the era of digital innovation.
