The second payment services directive (PSD2) is an EU directive which comes into effect on the 13th January, 2018. Amongst other mandates, all banks in the European region must open up their APIs to allow licensed third-parties access.
Banks don’t have to comply with the regulatory technical standards (RTS) on strong customer authentication (SCA) and common communication by then, though. They have 18 months after the finalisation of RTS (which is estimated to be November 2018) to comply.
Banks across Scandinavia are already compliant with many of the directives contained within PSD2. For example, they already have open APIs accessible to agreed third-parties. Scandinavian mobile payments systems are the most successful bank issued systems of their kind in the world. These solutions have been adopted by more than 65 per cent of the population.
Auka works with banks all over the world to help them become compliant with and then to monetise PSD2. The Czech Republic is presently regarded as having one of the strongest banking economies in the region. This allows it to easily invest in innovation, and it already has a high per capita usage of smartphone technology.
The Czech banking market has a prime opportunity to exploit PSD2 to its advantage.
There is no clear mobile payments winner in the Czech Republic or its closest neighbouring regions yet. The addressable market is not that much larger than that of the Scandinavian countries where bank-issued mobile payment solutions have meant the likes of Apple Pay haven’t been able to gain a strong foothold.
Auka was the first to develop mobile payment technology in the Nordics, the first to launch mobile payments in Norway and the world’s first regulated financial services company to run 100% on the public cloud.
We have the experience and expertise needed to guide Czech banks through the PSD2 minefield.