The European Parliament and the Council of Europe adopted Directive 2015/2366/EU (PSD2) on payment services on November 25, 2015. The Directive defines payment services and regulates the requirements for entities involved in the services. The Directive aims to increase the security of electronic payments, to achieve greater user protection, to promote innovation and to encourage a competitive environment.
Georgia has committed itself to dynamic approximation to the Directive, within the framework of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part.
PSD2 sets out the requirements for payment service providers. These include the obligations that the seeker of the registration must meet to obtain the right to act as a service provider. This entails certain criteria and requirements, including prudential supervision.
The Directive sets out a list of payment services and also refers to services that do not fall within the scope of the Directive. The PSD2 includes updated issues compared to the first directive (Directive 2007/64/EC), including two new services and pertinent providers:
Payment Initiation Service is performed by a provider standing between the payer and the account service provider (for example, a bank). It initiates the payment transaction from the respective account with the user's instruction and consent. Due to the specifics of the service, the customer's funds are not owned by the payment initiation service provider. The latter only redirects the user's task to the appropriate provider(s) where that user’s account(s) is opened.
Account Information Access Service is rendered by the account information access provider. The latter allows the user to access their account(s) opened in one or more banks in a single space and receive the aggregated information they need in that space.
For the purpose of implementing and assisting abovementioned services, account service providers are obliged to develop open APIs, which will enable new types of providers to itegrate their systems with banks.
The directive also includes principles of oversighting providers during providing payment services; detailed rights and obligations of providers and consumers regarding payment services. The directive also determines responsibilities in case of violating of requirements for parties involved in carrying out of an operation. Important matters, like providing information to consumer and transparency, are also put in order, which is relevant in terms of one-time payment service and payment service framework.
It is also noteworthy, that in case of private legislative disputes, it is possible to go to court, but the directive offers more accassable and effective alternative regarding disputes concerning payment services, and the consumer can use this alternative in case of unsatisfactory decision by payment service provider.