The European Banking Authority (EBA) has called for the second payment service directive (PSD2) to be merged with the Electronic Money Directive.
The call follows a recent request from the European Commission for feedback on the specific directive.
In its response, the EBA put forward over 200 proposals that would contribute to the development of the single EU retail payments market and ensure ‘a harmonised and consistent application of the legal requirements across the EU’.
The EBA claims its proposals aim at enhancing competition, facilitating innovation, protecting consumers’ funds and data, fostering the development of user-friendly services and preventing exclusion from access to payment services.
The EBA added that while some of the objectives of the PSD2 have begun to materialise, there are still many challenges to face. The amendments by the EBA alongside merging the two directives are clarifying the application of SCA and transactions in scope, addressing new security risks for customers and addressing concerns about authentication approaches that have led to the exclusion of certain groups of society from using online payment services.
The amendments also include addressing underlying issues and obstacles to the provision of payment initiation services and account information services and addressing the enforcement shortcomings in relation to the implementation and application of Strong Customer Authentication for e-commerce card-based transactions as well as addressing unwarranted de-risking practices by banks and e-money institutions.
Some other amendments include moving from open banking to open finance and adjusting the prudential requirements of the directives.
The EBA recently issued guidelines for the roles and responsibilities of anti-money laundering and countering the financing of terrorism (AML/CTF) compliance officers.
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