PSD2

The EBA’s statement on the obstacles of the Third Party Providers (TPP)

On the 4th of June, the EBA published a statement, in which they draw up the list of potential obstacles unauthorized by the regulator, to the aggregation and initiation of payments’ activity.

The statement provides clarifications on the following subjects:

  • Authentication methods supported via the APIs:
    All authentication methods offered by banks to their clients have to be usable by Bridge, including biometrics.
  • Use of the redirection for proximity payments:
    The customer journey offered by banks has to be seamless enough to allow Bridge to have an effective payment solution.
  • Strong authentication should be kept to a minimum, and duly justified by security reasons.
  • Unfortunately, the EBA confirms that banks are the only one to bear the responsibility of strong authentication’s renewal every 90 days. Still, the EBA advises banks to delegate this strong authentication to bank accounts aggregators. Bridge supports this delegation.
  • Choice of the payment account: when a client wants to pay via Bridge, having to manually enter an IBAN is an obstacle as it is a painful step in the customer journey.
  • It is up to Bridge, and not to the bank, to assert its clients’ consent in the use of their services.
    Nevertheless, banks will be able to offer a “consent chart” on their platforms to inform their clients about the given consents. Banks will be allowed to withdraw this consent only after a thorough client investigation (for fraud reasons for example) and a justification to the regulator. Bridge remains available to its users to subscribe and modify their services easily.

Bridge welcomes the EBA’s precisions, whilst regretting the fact that payment initiation services can’t renew the strong authentication of its clients without the banks’ consent.

Bridge hopes that these clarifications will make for a fast finalization of the PSD2 API by banks, to fully benefit from their potential.

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