The European Banking Authority (EBA) published today an Opinion addressed to competent authorities on the transition from the existing Payment Services Directive (PSD1) to the revised Directive (PSD2), which will apply from 13 January 2018. In its Opinion, the EBA clarifies a number of issues identified by market participants and competent authorities, including with regard to the transitional period foreseen under PSD2.
Market participants and competent authorities are facing a number of issues and challenges in the transition from PSD1 to PSD2. Given the cross-border nature of retail payments, the EBA and the national competent authorities have a shared interest in ensuring that these issues are addressed consistently across the EU and that the transition from PSD1 to PSD2 proceeds smoothly and transparently for payment service providers across the EU.
PSD2 has conferred on the EBA the development of twelve Technical Standards and Guidelines covering a number of different areas, including authorisation, passporting, payment security, account access, and consumer protection. However, by the application date of PSD2, 13 January 2018, some of the EBA deliverables will not yet be applicable, either because they have not been completed or because PSD2 itself envisages that certain security-related provisions will be applicable after its application date. Finally, PSD2 also foresees that some groups of providers will not have to comply with all PSD2 requirements from its application date.
Against this backdrop, the EBA in its Opinion conveys a number of views and provides advice to competent authorities on how to address these issues. For example, the Opinion clarifies that even if an EBA instrument does not yet apply, the underlying provision in PSD2 does. The Opinion also provides clarity on the EBA's interpretation of PSD2, especially with regard to the transitional period under Article 115(4) from 13 January 2018 until the Technical Standards on Strong Customer Authentication and Common and Secure Communication
apply, including the advice that payment services providers comply early with the requirements. Finally, the Opinion clarifies how and when the existing EBA Guidelines on the security of internet payments under PSD1
will be superseded by the provisions in PSD2 and the related EBA instruments.
Legal basis and background
The EBA has drafted this Opinion in accordance with Article 29(1)(a) of its Founding Regulation, which mandates the Authority to play an active role in building a common Union supervisory culture and consistent supervisory practices, as well as in ensuring uniform procedures and consistent approaches throughout the Union.