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PXP Financial re-authorised under PSD2

May 2, 2018 at 1:00 PM

We are happy to announce that we have now completed the re-authorisation process with Financial Conduct Authority in the UK under the revised Payment Service Directive (PSD2)! This means we can continue providing payment services to all our partners & merchants!

Why did we have to re-apply?

PSD2, that came into force on 13 January 2018, requires not only new but also all existing Authorised Payment Institutions (payment services providers) to go through a re-authorisation process to be able to operate beyond 13 July 2018.

Why was PSD2 introduced?

The main goals of the revised regulation are:

  1. Ensuring better consumer protection
  2. Fostering innovation and competition in the payment space
  3. Taking into account the modern payment methods such as mobile payment and online payment.
  4. Improving security in the payment space

What are the key changes under PSD2, in a nutshell?

  1. Extension of reach to non-EU transactions: PSD2 extends its scope to “one leg out” transactions, where at least one side is located within EU borders.
  2. No card surcharges for consumer cards
  3. Open banking: banks need to open up the accounts to external parties, which will encourage new players to enter the market
  4. New security requirements: stronger customer authentication and securing an open access to customer accounts

In the converging world of payments, 2018 is a year of big changes. We’ll be sure to keep you posted on the most exciting developments, stay tuned!

Tags: Commerce

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