PSD2 – New opportunities from Payment Initiation Services

To the surprise of a great many Europeans, who once believed that the EU system was far too bureaucratic to ever take the lead when it comes to innovation, PSD2 has turned out to be more disruptive than anything any bank or merchant would expect from any FinTech start-up.

The purpose of the revised regulation is to promote innovation, competition, and efficiency in the market and to modernize payment services in Europe for the benefit of consumers and businesses alike. It aims in particular to improve transparency, data sharing, and consumers’ rights, as well as to reduce the cost of payment processes.

The new directive introduces the role of the Third Party Provider (TPP) in the banking ecosystem in two categories: Account Information Service (AIS) and Payment Initiation Service (PIS).

Gilles Grapinet, CEO Worldline, about PSD2 “The PSD2 is a game-changing regulation. It’s not just another set of rules in the world of payments. To look at the PSD2 solely from a compliance standpoint would be to grasp only 10% of its full potential.”

Get paid easily by Credit Transfer and Instant Payment with Payment Initiation Services

Get paid via Credit Transfer within the continuity of a consumer journey, without any break between purchase and payment and with no risk of error, with WL Account-Based Payments.

  • Increase your transformation rate

    • The future of payments: Instant Payments are expected to become the most used payment method for internet payments. The PISP (Payment Initiation Service Provider) will help you to accept Instant Payments and Credit Transfers easily and without any break between purchase and payment, allowing a reduction in the number of aborted transactions.
    • Universal: In Germany, the Netherlands, and many other European countries, non-card payments are the preferred payment method. Providing PIS and its associated payment methods to these purchasers will help you meet their requirements.
    • High spending limit: Many banks set a higher purchase limit for such payments than for payments with cards, allowing you to sell more expensive products.

    Bring a new level of security

    • Security: Once validated by the payer, the payment is irrevocable, and as soon as the money has been settled to your bank account, there is no more risk of dispute by the consumers.
    • Consumers have control of the payments. In many cases, they might be reluctant to provide their IBAN for a direct debit or their PAN for a card payment. The initiation of payments allows them to have full control of their payments and to put more trust in e-commerce.
    • The PISP automates the transaction from the merchant website, so there’s no risk of the payer incorrectly providing the wrong IBAN, amount, or reference when initiating the payment.

    Reduce costs

    • Credit Transfers and PISP provide a good opportunity for merchants to replace expensive checks and paper invoicing.
    • Fewer unpaid transactions than checks or direct debit: In some European countries, unpaid direct debit in relation to insufficient funds in the bank account has a rate higher than 2%. Worldline’s solution will help you reduce your unpaid transactions, allowing you to reduce costs in relation to fraud management and recovery of money. 
    • Less work to reconcile payments and settlements: Worldline as a PISP will allow merchants to automatically reconcile them, meaning less operational costs.

WL Account-Based Payments for online payments

A payment service to integrate in merchant websites, either directly with an API or through a dedicated PSP. 
For the payment, the consumer selects his/her bank, is redirected to it, and uses the bank authentication to validate the payment.
  • Trust and confidence
  • No consumer enrolment
  • Convenience

WL Account-Based Payments for In-Store payments at the POS

After launching the wallet app, the consumer simply taps the NFC POS payment terminal, allowing him/her to check his/her payment and to initiate an instant payment to the merchant. When the payment is done, the user and the merchant receive the confirmation directly.
  • Very easy to use
  • Instant clearing
  • Higher amounts : less constraints on the paying power of the payer

WL Account-Based Payments on-the-go

A payment service directly integrated in the merchant application allowing 1-click payments. The consumer can pay directly through a wallet without entering his/her credentials. 
The authentication is managed by the bank.
  • Instant confirmation of payment
  • Irrevocable for more security of the merchant
  • Trust and confidence

WL Account-Based Payments for invoice payments

Combined with e-invoicing, this payment solution allows payers to easily pay their invoices online via credit transfer, instead of using their own card or a direct debit.
  • Full control
  • Cost reduction
  • Adapted for small and medium companies

Read the white paper

Industry insights

The paper provides an authoritative analysis of the future role of cash, cards, and new forms of digital payment such as instant payments.

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WL as the major payment service provider in Europe.

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Worldline's CEO Gilles Grapinet speaks in a new interview about the huge opportunities that PSD2 offers for banks, large retailers, and FinTechs.

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