Start Planning Now for PSD2’s Impact on the United States (and Your Company!)

The Revised Payments Systems Directive (PSD2) went into effect in the European Union (EU) and Great Britain in January. Any U.S. company that does business with Europe needs to have a strong grasp of PSD2 and must be ready to leverage new opportunities and stay ahead of the competition when similar changes take place on American shores.

A Crash Course in PSD2

The precursor to PSD2, the original Payment Services Directive (PSD) was established in 2007, creating a single market for payments in the EU. The Single Payments Area (SEPA) established a “single set of tolls and standards that make cross-border payments in Euros as easy as national payments.”

Since PSD was installed, new services and FinTech innovations have arrived in the market that do not all fall under PSD’s original scope. PSD2 was created to fill those gaps. The stated objectives of PSD2 are:

*Make payments safer.
*Increase consumer protections.
*Foster competition and innovation.
*Ensure a level playing field for banks, FinTechs, the payment card industry and merchants.

PSD2 will utilize what’s known as XS2A so banks can set up secure APIs to access account services. Third parties will then be able to make payments on behalf of the consumer and provide them an overview of their accounts, effectively eliminating the middleman.

Understanding the Impact of PSD2

There are several anticipated impacts of PSD2 that U.S. companies should keep an eye on. Stakeholders in the EU are hoping to achieve:

*Increased competition thanks to a streamlined licensing process for new entrants into the market.
*Reduced fraud risks thanks to the requirements of Strong Customer Authentication (SCA).
*Payment service providers will have access to data via new secure and direct sharing links.

Every aspect of business for impacted companies will feel the effects of PSD2, and plans should be in place now that address PSD2 and:

*Fraud
*Security
*Risk management
*IT systems
*Products and services
*Staff training
*Processes and procedures
*The customers’ journey
*Marketing
*Sales
*Complaints
*Dispute resolution
*MI and reporting

Now that PSD2 has been implemented, it is critical to have experts on board today that can help navigate the changes when doing business with the EU. It is equally important to have sales and marketing professionals on board who can help U.S. companies take advantage of new opportunities and enhance customer relationships as similar regulations reach the U.S.

Are You Seeking Sales and Marketing Talent?

If your payment systems or FinTech company is looking for sales and marketing professionals who can help you leverage PSD2 for growth, MoneyTech Search can help. Our recruiters are experts at matching great companies with top sales and marketing talent in the financial technology and payment systems industries. Contact us today to learn more about the ways we can help you achieve your goals.