Just over a year ago, the Payment Services Directive (PSD2) became effective. It enables a range of new services. These include on the one hand account information services, which can help consumers better manage their finances. For example, these services break down how much is spent on restaurant visits, trips, or monthly fix costs. On the other hand, payment initiation services expand the choice of payment options and compete with more traditional methods such as credit cards.
On behalf of the Federation of German Consumer Organisations (vzbv), ConPolicy prepared a report on the implementation of the PSD2 in Germany from a consumer perspective. The report examines typical services as well as the providers’ underlying business models as part of an exemplary market overview of the different types of services encompassed by the PSD2.
Based on this market overview, the report subsequently analyses both the benefits as well as the problems and risks consumers experience as a result of PSD2. The guideline creates added values through an increase in user-friendliness of otherwise complex financial services as well as through an increase in competition, confidence, and security within the market.
Despite these positive aspects, the assessment also uncovered problems in the PSD2 market. Some of the providers’ business models are in discrepancy to consumer interests. This issue especially pertains to commission-based business models. It is further questionable whether users’ privacy is always protected.
Based on this analysis, the assessment formulates recommendations for further action, for example for improved privacy protection and identifies future research needs.
The report has been published on the vzbv website and is available here.
Further information on the project can be found here.
Media and other reporting on the project:
Handelsblatt // Consumer advocates criticize lack of data protection for account data